I do not think Stoch is really necessary, I just use the EMA cross for this system. If we wait for a trace back to the EMA, I always wonder how one can tell if its not going to cross back the other way [I guess that is why we have S/L]. Actually, I see this EMA cross used on even smaller TFs for many of the systems posted in FF along with other indicators.
Hi guys. I've been using the 5/8 for my daytrading on 15 min charts. I played around with filters but gave up on them. I just use support and resistance and a bit of common sense. I take off 2/3 at 1:1 and let the other one run. Stop and TP are 25 pips at the moment. Only trading the E/Y. Anyone else doing 15 mins?
Ignored
Is anyone still here? Was thinking of posting a new thread wheni came across this, so there wont be any need for that since its about the same strategy though with a little different approach.
I once traded EJ solely on 15mins too bt still with my filters. You'll miss some good trades though, bt saves you from lots of bad trades too.
I'll try and keep posting my trades as they come, so i can learn from the veterans av read about here.
Lets keep the thread alive i believe its a good tech.
I did not take any new trade today because i was out tending to some other business.
However a GJ trade i'd been in for a while now, finally closed in my favour for 50 pips.
In my next post, i'll give a detailed description of how i use this EMA cross over and a few indicators' settings to spot signals and how i enter a signal.
But I'll like to state here (having seen some probably success hindering assumptions posted here) that while it is good keeping it simple, it's better to know all you can in the world of forex trading- No knowledge is lost they say, and that is absolutely right and applicable to forex.
I'm more of an harmonic trader, i know a lot about chart patterns too, i know about candle stick formations, i know the importance of S/R levels or pivot points, i know wave patterns, i know about the use of fibonacci, and the use of trend lines has been fantastic and revealing to me, i know other things.........
Pls dont get me wrong, am not trying to blow my trumpet or sell myelf here, rather i'm making a point and that is- at a point in time, your knowledge base of forex trading will be your saving grace. PLEASE dont limit yourself to just one simple formular or technique and expect to make it big in forex trading, you'll soon burn out or get frustrated out of the market- Little wonder why some thread fizzle out.
Seek to increase your knowledge base and in the long run you'll see how these things add up/correlate, there and then will you be able to understand better how the market works and be among the few that's making success out of this business.
So many free qualitatively informative sites abound out there, go seek them out and improve yourself and stop limiting yourself.
YOU CAN MAKE IT. All you need is just a little hard work(studying). Do that for a while and enjoy the fruits-Benefits thereafter.
Remember, if Obama can, so can you. Stop searching for the holy grail of forex, you've found it already.
Yes. YOU are the holy grail, go discover yourself and succeed
I took 2 trades this morning based on the daily TF. But i broke my own rules (indiscipline) and the trade is presently in red.
Let's examine the 2 trades and how i've broken my rules.
1. AUDCAD.
There was a fresh cross of the EMA after the close of yesterday's candle on the daily TF (see first attachment-arrowed candle) and this cross also met my criteria. This would have been ok to trade.
Being an harmonic trader, i zoom down to the next lower TF and see if the candle gives a signal too, then trade.
In this case i should have zoomed down to the 4hr tf which would have held me back from taking this trade at least for now. (The close of the last 4hr candle did not give a signal-see 2nd attachment arrowed candle).
The 2nd trade has 2 mistakes:
The first is has explained on the first trade, the 2nd mistake is that the Ema cross on the daily is not a fresh cross. See attched graphs.
These trades might close in my favour, but it's not a wise thing to break your trade plan, it exposes you to more risk. Let's see how the trade turns out.
But i sure do hope someone learns from these mistakes.
1. the difference between the stoch and its signal values, if its up to 10
2. if RSI is at 52 (for long) and 48 (for short)
If these are met, i zoom down to the next lower TF and wait for the candle to close then take trades if the signal is also confirmed.
Like i pointed out earlier, while it is good to keep it simple (and am sure this is simple enough), it is better to know as much as you can. To this effect, i apply other things like the use of TL to further filter my signals.
But so far, zooming down to a lower tf has really been of immense value to me.
A classic example of breaking my lower tf rule is my trades of today.
Well, its 15gmt and my 2 trades are still in red. Looking at the 4hr tf, i would not have entered the daily signals yet as no closed candle in the 4hr tf is yet to give me a valid short entry signal(so am presently being punished for breaking my rules.)
I took 2 trades this morning based on the daily TF. But i broke my own rules (indiscipline) and the trade is presently in red.
Let's examine the 2 trades and how i've broken my rules.
1. AUDCAD.
There was a fresh cross of the EMA after the close of yesterday's candle on the daily TF (see first attachment-arrowed candle) and this cross also met my criteria. This would have been ok to trade.
Being an harmonic trader, i zoom down to the next lower TF and see if the candle gives a signal too, then trade.
1. the difference between the stoch and its signal values, if its up to 10
2. if RSI is at 52 (for long) and 48 (for short)
If these are met, i zoom down to the next lower TF and wait for the candle to close then take trades if the signal is also confirmed.
Like i pointed out earlier, while it is good to keep it simple (and am sure this is simple enough), it is better to know as much as you can. To this effect, i apply other things like the use of TL to further filter my signals....
How do you cnfirm from lower TF? Same rules as for Daily?
Ignored
Hello Dezil,
When i get a signal say on 4hr, i look at 1hr and see if closed candle is also pointing in same direction with my signal. if yes, i trade,if not wait until a closed candle gives you signal on the lower tf then trade.
If by the time i get a signal on the lower tf,the 4 hr tf is no longer in the initial direction of the signal, i wont trade
Yes i apply this to the daily too. A look at my last 2 trades will lay more credence to this- on the 4 hr tf, no signal was given for a short, so i would have stayed out and not be in red as i am now.
I did not trade y/day, hence my not posting. Mostly i trade 4hrs and dailies, but today, most of the pairs are not looking so good as regards signals, so i would be strict on the 1 hr tf entry today-all conditions must be met before taking entry
My last 2 trades are still in red (the price to pay for not being disciplined).
I use EmA 5 applied to close and Ema 8 aplied to open
Stoch 8, 3, 3
RSI 13/14 at 20, 40, 60, 80 levels.
As at now, i have a signal on USDCHF on the 4hr tf, but still waiting for 1hr tf to align.
Ignored
1 hr finally confirmed the 4hr signal, but ema cross is not good enough so i go down to 15mins. to view Price Action.
Saved from yet another false signal. Might still turn out good though (which will give a better entry than just jumping into the signal at the close of the cross candle.), but given the time elapsed so far i might just give up on this. Moreso, on the 4hr tf,
stoch is turning the other way
Rsi could not blast past the 60 level mark to show uptrend is strong
and some other reasons not suitable for this thread (let's keep it simple).
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Joined Sep 2008
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Status: Forex Beauty
|82 Posts
Hey just one question!
How do you set your limits?
I mean How do you set your stop lost and your take profit?
Crossing EMAs is really helpful for signal confirmation
but I feel a little uncomfortable if I don’t know how to set a protective stop loss on every trade entered.
I'm sorry for not replying before now, i've been a little bit down and needed to rest my body and brain, thank God i'm back to action now.
I do place my stop loss above/below the cross candle (high/low of cross candle + 10pips + spread)
My initial take profit is 50 pips and then risk to reward ratio of 1:1 after which i break even and allow the trade to run, moving stop loss to S/R levels or high/low of previous 4hr bars.
I'll be posting today's signal and trades as i take them.
Hey just one question!
How do you set your limits?
I mean How do you set your stop lost and your take profit?
Crossing EMAs is really helpful for signal confirmation
but I feel a little uncomfortable if I don’t know how to set a protective stop loss on every trade entered.
I have a few signals so far this morning this new month and as usual i'm waiting for the lower tf to bring me in some in the 1hr tf and some in the 15min. tf.
I have cross over that met my criteria on the 4hr tf on the following pairs
AUDUSD, NZDJPY, SGDJPY
AUDUSD>a good cross on the 4hr for a signal, but on the 1hr, i noticed the bar closed as a bullish candle (which signals a retracement up), i then zoom down to 15mins tf and confirmed the retracement, so i wait for the lower tf's to align and i then place my trades and my tp's as earlier explained.
I'll like to state here that i only note my stoploss on my charts, i dont place them on the trades. I close a bad trade if and when prices close above/below my stop loss level on the 4hr charts. (this is my own way, its not an advice please).
The reason why i do it this way is because, most times you find that price hits your stop loss level but does not close at tht level rather returns in the direction of your trade even up to 400 pips atimes in your direction
All signals today are in green some already given 100+ pips.
All it takes is patience and discipline. I'll post one of the charts.
My criteria for a good signal are simple.
1. EMA cross must be a minimum of 8pips difference btw ema5 and ema8
2. Stoch must be crossed up/down, and the difference btw the stoch and its signal must not be less than 10 (not 10 pips as in ema but 10 units.)
3. RSI 14 must be 52/48 for long/short signals respectively.
Only 1 exception of any of these 3 criteria is allowed at a particular time. If a signal is failing in 2 of the criteria, i dont trade.
Once i get a good signal on the 4hr tf, i go to 1hr tf and see if all criteria are met, then to 15mins and place trade if/when all criteria are met.
Simple and effective.
My coonection is slow, not allowing me to post charts at the moment, so i'll try and explain my criteria without a chart for now.
When you open up a data window, you see a list of all the indicators and their values on your chart.
Take a look at the stoch, you'll see something like
Stoch. (8,3,3) 14.2433
Signal 14.4052
In a case like this, the soch is crossed down. The difference btw it and its signal line will be (14.4052-14.2433)=0.1619..... This is not even up to 1, not to talk of 10units.
In the case of the ema difference, you measure in terms of pips (i'm sure we all are familiar with that).
well, got to go now, i'll be posting a little write up on how to draw an effective trend line soon.
I learn this from a good fellow trader (naijaforex) Mike.
