Fxt777 EMA Distance System

Hello dearest FF members and guests

I have created a system which is not fully tested but looks good so far
I am releasing this system for free.
I think you will be interested because this is a new approach to EMAs. I am sure you have not heard of the similar trading system.
Do not be confused it is not GTS system

Ok here is explanation:

We use 5,10 and 18 EMAs
We use BB Squeeze indicator (indicates when bollinger bands come out from ketler channel)
We use 4 hour charts
I think it works good on EURGBP and USDJPY

1. When we have a signal the Bollinger bands come out from ketler channel there will appear a blue dot on BB squeeze indicator. This is first signal.

2. But we wait for EMAs to confirm a trend. So when distance between these 3 EMAs are equal this is confirmation of the trend.

3. After we see that distance between these EMAs are equal (there will be yellow line to show this) we wait when price goes to 10 EMA and then retraces and closes on bearish/bullish bar. Important is that price should not close 10 pips (20 pips USDJPY) above of the 10 EMA.

I am still thinking on EXIT point, may be you have better idea?
My idea is exit should be when BB squeeze bars stop to rise.
This is it, if you have question you can ask, When I log in second time I will answer them.

In the meantime see attached charts

thanks

Another one again for EURGBP ..........................

You can trade if there is not a first signal, but not sure how consistent it is

Here is an indicator for EMA distance

Thanks for posting this method.. looks good so far. Let me get familiar with it and I'll get back to you.

OK no problem,

3. After we see that distance between these EMAs are equal (there will be yellow line to show this) we wait when price goes to 10 EMA and then retraces and closes on bearish/bullish bar. Important is that price should not close 10 pips (20 pips USDJPY) above of the 10 EMA.

If the retracement does not happen to go back to the 10 EMA, does that mean we sit out until it does?

Just wonering if you could post a bb squeeze and as well the input values for each indicator.

thanks

It happens very seldom, but if it happens we are missing trade

The retracement approach is good, because if you enter immediately after there is # 2 signal then price may retrace near to your stop. So it is better to wait retracement.

thanks

bb squeeze ............

Could you explain squezze indicator a bit, what is what on it

Thanks

BB squeeze is easy explanation of combination of Bollinger bands and Ketler channels.

Unfortunately I do not have Ketler channel in my indicators list, so I can't show you charts as example but I will explain.

If you have in you indicators lists, open 4 hour charts and plot Bollinger bands and Ketler channels. When you see that bollinger bands go inside of ketler channels this is signal that there is not a trend and market is in consolidation period. But when bollinger bands come out from ketler channel this is trend confirmation signal. On BB squeeze this is shown by this way:

1. When you see blue dots after red dots this means that bollinger bands have just come out from ketler channel. And the bars show whether there is momentum or not. When every next bar is larger then previous this means that trend is in force, but when bars stop to rise this is indication that trend has gone (may be temporarily but it realy has gone)

thanks

Thanks for explanation, a I have seen squeeze before on John Carter webinar

But what if lines goes from red to green or vice versa but bottom dots are not cyan but redish color?

what is the meaning of those underlaying dots (which can be cyan or pink)?


Thanks

LOL what dots?

I do not know what color cyan is LOL

There are two colors: red (or like red) and blue (or like blue)

Here is latest example
Price retraced after entry but then went up

thinink to [lace stop at the price were yeello vertical line intersects 10 EMA. But I do not know if it makes any sense

Here is a signal,

May be it can be as example where to place stop

price went from entry by more than 20 pips,