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Attachments: Simple 5 / 8 moving average crossover
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Simple 5 / 8 moving average crossover

hello People,

Hoe you are raking in green pips. In line with my promise, please find attached a little write up on drawing an effective trendline.

I believe this is a powerful tool for your success in this business.

Prrices respect TL's a lot and once price breaks a TL, retests it and fail, it in most cases signal a break out and if further confirmed by a good signal (ema cross), you can be 80% of a sucessful trade.

TL's also act as a PRZ (Potential Reversal Zone) and i look out for a good cross at PRZ close to a TL.

So many ways you can use TL in a trade, but most importantly, learn how to draw a good proper TL and watch how price acts at a TL point.

I see a lot of garbagge on the net on how to draw a TL, even by so called professionals and veterans, i didnt know i was doing it wrongly too, until a fellow trader (naijaforex/Mike) mercifully taught me the right way without charging a dime.

So, freely i have received, freely i'm giving it away. Hope this helps someone out there.

Cheers.
God's Love For You Is Sure Never You Doubt It
good morning

I realised i did not properly attach the file, so am going to do it again now, sorry for any inconvenience caused.

I got signal on USDCHF, waiting for 15min/5min. to align for me to take entry

Also i'm eagerly watching and waiting for a short signal on the EURCHF. I'm expecting a fall down to 1.5115/1.4942 region. The present 4hr candle might close as a tweezer top and this will further highten my expectation.
Attached File
File Type: doc DRAWING TREND LINES.doc   243 KB | 1,538 download
God's Love For You Is Sure Never You Doubt It
Quoting D liberators
good morning

I realised i did not properly attach the file, so am going to do it again now, sorry for any inconvenience caused.

I got signal on USDCHF, waiting for 15min/5min. to align for me to take entry

Also i'm eagerly watching and waiting for a short signal on the EURCHF. I'm expecting a fall down to 1.5115/1.4942 region. The present 4hr candle might close as a tweezer top and this will further highten my expectation.
Good morning

I did not trade yesterday, had some other things to attend to, however today trades will be done with uttermost caution.

I have long signal on EU, but not taken yet for 2 reasons: the 1hr lower tf is yet to align. Secondly, my analysis shows EU is at a potential reversal zone (PRZ) of 1.2814 area and if that resistance holds, EU might begin a short trend but with the NFP expected to come out pretty bad today, the resistance stands the chance of being broken, so, i will be exercising caution on this pair.

I'm also looking for a possible short on UCHF and ACHF (signals from yesterday-4hr tf) but lower tf is yet to align.

I cant overstress the need to always go down to a lower tf to confirm and enter signals given on 4hr tf.

I've been trading this way for more than a year (when i learnt the ema cross over from another thread here in this forum- ''the key to the mint'') and it's saved me from lots of false signals, and also given me better entry points.

Wish you all happy trading.
God's Love For You Is Sure Never You Doubt It
wow - if you jumped on board the euro-train on the 5th - you should be planning a sweet vacation right about now. who knew???
Quoting enochben
wow - if you jumped on board the euro-train on the 5th - you should be planning a sweet vacation right about now. who knew???

Thats the potential of an EMA cross using the right criteria. Did i hear somebody say all indicators lagg?
God's Love For You Is Sure Never You Doubt It
Quoting peterM
I have been using a strategy for a few months now. It is very simple and I have followed the rules exactly. Its certainly not holy grail but it has made me some nice pips over the last few months.

I use the 5 EMA and 8 EMA crossover on the daily chart. For the stop loss I use the low or high for the previous day (depending on if we are or short). Alternatively if this is too close or too far away, so the risk/reward ratio would be too low, I draw fib lines on the daily chart and trendlines to try and pickout important support and resistance points...
nice post,

Peter have you ran the method in a tight sidways market yet?
Quoting >Apocalypto<
nice post,

Peter have you ran the method in a tight sidways market yet?
Seems Peter has abandoned his thread for now.

Using this method in a sideways market is not advisable. What you can do in such situation is to go to a lower tf and scalp-assuming the 4hr tf is choppy, you go to say 15mins/5 mins tf to trade. - bt this is not advisable.

Generally i stay off sideways market.

Just my 2 cents
God's Love For You Is Sure Never You Doubt It
Or you can add 1 more MA..... a slightly longer tf say 21 period and use it to help with those range decisions.
Attached Image
Same Whore .... Different Dress
just came across this thread and trying out the 5ema close / 8ema open cross on 4hr ( with Alpari ) and found it quite good if i were to..........

1) look for a clear cross of the emas with separation and angle especially after prices had gone up or down quite a lot

2) enter on the close of the 4hr bar after the emas crossed ( entering when price retraced to 5ema gives better profit )

3) stoploss just above / below the high / low of the said 4hr bar ( better if the 4hr swing high / low is really close by )

i tried on eur/usd and gbp/jpy and found it gives a 1:1 reward quite often and more often 2:1 reward if trading in the direction of the 200 ema.

also, i've not taken into account of any trendlines or support / resistance. i just try to avoid ranges.

anyone care to see if my observation is even half-right ? especially those guys that have tried this for the last few months.
Has anyone tested this system on any other pairs and done fairly well?
Pip Piping all the way!
seems that gbp/usd and gbp/jpy did well..................so far i've been observing on the 4hr charts with Alpari

but since different brokers has different 4hr charts, i wonder if there's a big difference with the other brokers...........

anyone looking at 1hr charts ? Oanda has the 3hr charts but just plain 5 and 8 ema ( but no open for 8ema or close for 5ema )
Quoting Jrex
Has anyone tested this system on any other pairs and done fairly well?
It works well on all pairs especially when traded in line with the daily trend on lower time frames.

I use RSI 13 and stoch 8,3,3 to filter trades.
God's Love For You Is Sure Never You Doubt It
Peter,
Are you or anyone else out there still using the 5ema x 8ema?

Thanks,
Mike
Quoting mmazzuca13
Peter,
Are you or anyone else out there still using the 5ema x 8ema?

Thanks,
Mike
Hello Mike,
Yes I'm still using the 5/8 EMA cross.
God's Love For You Is Sure Never You Doubt It
Hi D liberators,

I've been trading this on the 4hr TF and i use the high or low of previous candle for sl or the atr. Do you have any suggestions for tp i'm never really sure where to place it. Appreciate any and all comments,

Thanks,

Mike
Hi,

I have manually backtested 9 pairs (spread of 5 pips or less) with the 5/8 ma method (+CCI(14)) for the first three weeks of June on 4hr charts. I used a 100 pips SL and TP. Once 50 pips up, I moved SL to BE +10. I had 20 wins and 4 losses for a total of nearly +1400 pips. I know it's not like live trading, but it shows how interesting it can be. I took three trades on demo since monday of this week and I'm +250 pips so far. I moved my SL to BE + 50 pips on one of them when price was almost at TP level, but then it reversed.

You can see an example of my setup on the picture. I use 5ema (close)/8ema (open). The first blue histogram is MACD (5,8,1) to simulate the EMA crossover as proposed by Banzai earlier and the second colored one is MACD (30,48,1) to simulate the crossover for the daily chart.

The rules I follow is to enter a trade when the EMA has crossed on a closed candle, then check if CCI(14) is over 55 for long or under 45 for short and then enter only if compatible with the daily MACD (green over 0 for long, red under 0 for short). I am also considering entering short on dark green daily MACD and long on light RED MACD (see smaller arrows).

Money management can be improved, like closing part of the trade when TP is reached and let run the rest of it with maybe a trailing stop. This is a very simple and promising system.

Regards.

Chamane

http://i44.tinypic.com/rk0h74.gif

P.S.: I need a customizable MACD for close/open price on fast and slow EMA. Thanks in advance.
Replace CCI(14) by RSI(14) in previous post.

Sorry

Chamane
Hi Chamane,

Thanks for the reply. Have you tried using the 2 lot approach yet?

Thanks,

Mike
Quoting mmazzuca13
Hi Chamane,

Thanks for the reply. Have you tried using the 2 lot approach yet?

Thanks,

Mike
No, but I will probably use it soon. Maybe something like cashing in at 2/3 of TP for 1 lot and moving SL to BE with trailing stop of 25 pips for the other. I will have to look at what others think about that keeping in mind the risk to reward ratio.

Regards

Chamane
I was curious to see how this strategy is profitable on the 4 hr TF in the long run. I manually backtested AUDJPY, AUDUSD, CADJPY, CHFJPY, EURCHF, EURGBP, EURJPY, EURUSD, GBPJPY, GBPUSD, NZDJPY, NZDUSD, USDCHF, USDCAD and USDJPY. Overall, I came up with over 15000 pips since January following the rules in my previous post. The win/loss ratio is around 78%. The pairs with JPY gave the best results and EURCHF (62%) - NZDUSD (67%) the least profitable results. Of course I couldn't have taken them all otherwise I would have gone over 2% of my investement in trades in many occasions.

I used 200 pips as SL and TP instead of 100 pips for GBPUSD and GBPJPY because of their higher volatility. Using 2 X ATR(13) as SL and TP seems to be a good estimation. It looks like the strategy works well with other timeframes. I will have a look at daily charts.

Chamane
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