200 Ema system - help me build a system !

( I am sure someone else is doing this but I came up with an Idea)

We start with the premise the 200 EMA closed
is equilibrium of the market on any chart

we use the 15 min chart as our bace chart

We put a 200 EMA (red) as our base line (15 min 200 EMA )
We put on a 67 ems (green) - to show the 200 on the 5 min chart
We put on a 800 ema (blue) to show the 200 on the 1 hour
We put on 3200 ema (purple) to show the 200 on the 4 chart

What can we do to trade

1. The watch dag
Use the 5 min 200 ema ( green) as a watch dog of up coming trades
- the price is going to far the wronge way

2. the price too far
& when the 15 min ema ( red) is out of place with the 2 higher time frames
we look to trade
- the price is to far & we can make some pips

3. the 1 & 4 hour 200 ema to show what should be the real price should be.


The trade is when ? we see the reversal happen - & a sign is?
3 possible ideas I have of when we trade

1. we see a candle reverse
2. &/or we use Par Sar as a buy sell signal - cross back
3. &/or we see a crossing of the stoch - 14.3.3

We get out of the trade
1. We see a candle reverse
2. The Sar a sign
3. The Stoch crossed
4. The 15 min 200 comes back into place wiht hthe other higter frame lines
5. The 5 min 200 comes back into place with the other higher frame lines?


any Ideas - What do you think

missed something
the 1 & 4 hour 200 ema are one one side of price
& the 5 & 15 are on the other
or the reverse .
that is how we know price is "out of place"
& that is when we look to buy the reversal


other wise we just have a trend
and an other Idea- maybe
if you see all 4 EMAs on the same side of price
just wait to get the Sars also line up & use it to be a buy or sell sign
- in other words
when you see the Sars going with the trend ... buyor sell?

any Ideas?

Hey TEB,

Did you have any examples? I'm not sure if it's just because I woke up or what, but I'm having trouble understanding your entry and exit rules. I think some charts would help.

Anyway, thanks for sharing your method.

Kevin

i have a great picture saved which shows it I have in on my desk top how do I get it so you can see it!

it looks like it might really work!

got it better luck then....

look @

1. The red arrow
the price is over the hour & 4 hour 200 EMAs
but under the 5 & 15 200 EMA
So I believe the price will rise because it is against the one & four hour trend so I am looking for a reversal ....

2. look at the green arrow
all 4 EMAs are lined up - we have a trend on the 5, 15, 60, 240 min charts
( remember we have the 200 EMA from each of then)
& we have the Par as well
so we are trading with the trend !

that sounds interesting...

i will put some charts with that and have look

can I add 3 things

1. you can not see 200 EMA from the 4 hour chart which is below the 200 EMA from the 1 hour chart ( the blue ) - but it is there

2. the stoch is also going the way we want it to be going in each case

3. It looks like the best sign to get in - is when the both the shoch & the Sar give buy signs - esp. on the reversal.!!!
it looks to me like just candle formations are not good eneogh an the reversals.

I had done some backtesting awhile back, reversals are not always profitable due to false moves. Your system still looks interesting.

What made you decide to use the 200 EMA? It's not a fibo, it's 4 years on the weekly, 9 month and 2 days on the daily, and 8 days and 8 hours on the hourly. What made you decide to not go with the 199 EMA, or the 201 for that matter? What exactly does the 200 EMA have to offer?

I think I helped out a little on a simular ea on a tsd thread several months ago.
Have a look at this, I haven't tested it lately.
Maybe not exactly what you wanted but could at least give you a head start in coding this one.
This one uses 2000 ma, & not 200.
Good luck, will keep an eye on your thread.

Peter Bain - the well-known forex guru - said the 200 ema is the moving average that is used the most by traders. So if most traders are using the 200 ema, then I think that makes it important.


Topgun

With all due respect to you and Mr. Bain, even if the 200 ema is "the moving average that is used the most by traders" it doesn't logically follow that "most traders are using the 200 ema". Fewer than half of all traders could still be using it, and I suspect that is the case.

Even so, I've noticed the effects of the 200 ema. I use it and the 50 ema on the M15, 1H, and 4H charts. They seem to act as support and resistance. The 200 ema on the M15 is basically the same as the 50 ema on the 1H, and the 200 ema on the 1H is basically the same as the 50 ema on the 4H. The way they're stacked, plus the side of the 200 ema that price is located, can also help gauge a time frame's trend direction. Some traders just use the 200 ema for this.

When the 50 and 200 cross some people call it a "golden cross". But it might have to be on larger timeframes, like daily or weekly. I'm a little hazy on this, and don't actually use it in my trading.

I developed a system based on the 200, 100, and 50 ema median price. They are all related exponentialy and do line up on the charts as said earlier. I found out that most Institutional traders use the 50ema and 200ema, that is the significance of those two. (Like the finbonaci they become a self-fulfilling prophecy.)

Try this: 200 and 50 ema,
1)50 above the 200
2) price is trading above 50, wait for a close below the 50
3) now wait for a close above the 50 again- buy .

When the moon is in the seventh house and Jupiter aligns with Mars...

The 50/200 is popular with equities trading, but i don't know if it translates well to FX.

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Hi Teb
I don't know where this is going but it would be good if
a few people with forex knowledge looked at this and give
a few of us newbies insight into forex, it looks good I will
follow this thread with interest
regards joneepom

to those who use MA crossover

do you trade with multiple strategy or rely heavily on one (i.e. MA cross over) but constantly perfecting it?

crossover have lag and perform badly during sideway market with little volatility. so if you try to avoid entry this situation and only enter when the market seem to be trending strongly, this will decrease the number of trade you take and the profit as well, since you need to wait for confirmation. so what i want to ask is, is this unavoidable? or is there ways to mitigate this issue?