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5/13/62 Ema

  • #61
  • Nov 21, 2006 2:13am Nov 21, 2006 2:13am
Quoting rchapmand
eaziforex learn how to trade before you make statements like that.

llambert3, drop down to 30min chart and have a look.
First i trade since 5 Years .Second I discussed the system PERSONALLY with Rob Booker himself, he finally admitted the many drawbacks of the method.

If you think you can trade the FOREX with three lines, you are on the side of the market.
  • #62
  • Nov 21, 2006 5:47am Nov 21, 2006 5:47am
Hi eaziforex,

Since we're all here to learn, would you mind sharing what are the drawbacks of this method? Maybe those experienced traders who had success with these system will also share how they would or how they're handling the drawbacks.

Thanks heaps.

Cheers!

Quoting eaziforex
First i trade since 5 Years .Second I discussed the system PERSONALLY with Rob Booker himself, he finally admitted the many drawbacks of the method.

If you think you can trade the FOREX with three lines, you are on the side of the market.
  • #63
  • Nov 21, 2006 12:12pm Nov 21, 2006 12:12pm
It would be foolish if one simply trade all 62 ema bounces. In my opinion one must look for more evidence that price will bounce there before one just take the trade.
The probability that it will bounce on the 62 becomes much better if you plot standard Bollinger Bands and the 62 and B/Bands are almost on top of each other when price approach them.
I apply two mva's on all my timeframes namely a 10 simple and a 10 weighted mva. If you study your charts with these mva's you will notice that price often pull back to these mva's before it continue with the trend. Now if price pull back say on a daily to the 10 mva you can drop down to the 4 hour timeframe and watch how price bounces on the 62 (4 hour) while it also bounces on the daily 10 mva. These are high probability trades. It becomes even better when B/ Bands confirm that level. ( This is applicable on all timeframes)
I use the two 10 mva's only to determine if and how strong the market trends.
Hope it helps.
Never Ever Give Up!
  • #64
  • Nov 21, 2006 3:10pm Nov 21, 2006 3:10pm
It would be nice if Rob would come here and post his daily thoughts and answer questions about this system. I know he is a busy guy...but he is great when it comes to answering questions and helping people.

WHTENN
  • #65
  • Nov 21, 2006 3:12pm Nov 21, 2006 3:12pm
If Rob had confided there were drawbacks, it would be nice if that was pointed out or how to avoid being on the wrong side.
  • #66
  • Nov 30, 2006 4:14pm Nov 30, 2006 4:14pm
Could anyone help me how to read the 5/13/62 method?

Thanks..
  • #67
  • Nov 30, 2006 4:38pm Nov 30, 2006 4:38pm
Quoting c1ro
Could anyone help me how to read the 5/13/62 method?

Thanks..
http://www.forexfactory.com/forexfor...1&postcount=16
CRAIGSLIST BARTERING CHAMPION
  • #68
  • Dec 31, 2006 10:00pm Dec 31, 2006 10:00pm
Quoting rchapmand
eaziforex learn how to trade before you make statements like that.

llambert3, drop down to 30min chart and have a look.
Rchampand, I'd love to explain to you how the EMA crossover system can work, and when it does not work. It is a system for trending markets, and I'd be happy to help you understand the system more completely. I am sure you gave it a good try and I probably did not do as good a job as I should have of explaining how it can work for you as well.

My email is [email protected].
  • #69
  • Dec 31, 2006 10:05pm Dec 31, 2006 10:05pm
Quoting et_phonehome_2
If Rob had confided there were drawbacks, it would be nice if that was pointed out or how to avoid being on the wrong side.
I am more than happy to talk more about the drawbacks of the method. Here are some thoughts to start off the discussion, and I'm happy to contribute more often to the thread.

1. Never ever trade a system without testing it first. This goes for my crossover system, or anything you read about online or in a book. Testing means that you go back in time on your charts, and you move forward candle by candle, and you test how the parameters work, during times that you can trade, on a currency pair that you choose, etc.

2. Someome posted here that if you believe that the 62 is going to be support or resistance all the time, then you are on the side of the market. I agree with that. I don't believe that to be true. I do believe that the crossover method can be profitably used.

3. There is no perfect trading system, except the one that you learn and develop and test.

4. The moving average strategy works best in a trending market. For example, if you find a trend on the 1 Hour chart -- meaning the candles are above the 62 EMA, and the 62 EMA is sloping upwards -- then the 5/13/62 method on the shorter time frame 15 minute chart can be more effective. This way, you're waiting for a trend to develop and then you're trading with the trend.

I have more to say about all of this, and I am hoping that I can clear up any misconceptions about it in this forum.
  • #70
  • Dec 31, 2006 10:18pm Dec 31, 2006 10:18pm
Here is an example to follow up on what I was talking about earlier.

On the 1 Hour chart (attached in this thread, called 51362_One), I show that the candles are above the 62 EMA (so is the 13 EMA). The first candle to close when the 13 is above the 62 is the 6:00am candle, Eastern Time.

This means that we can drop down on the 15 min time frame and trade using the crossover method, even if the crossover already happened on the 15 minute earlier. On the 15 minute chart, the 7:00am candle opens and we can trade. Seeing the trend on the 1 hour chart helps to confirm our decision to trade on the 15 minute chart.

This is just one example of how to use a trending market to use the system. This isn't the only way to do it, but it is one way that can work. I will try to post some additional examples in the future.
Attached Images
  • #71
  • Jan 1, 2007 2:08am Jan 1, 2007 2:08am
Rob, thanks heaps for the info. Looking forward to more examples and insights on this method.
  • #72
  • Jan 1, 2007 7:25am Jan 1, 2007 7:25am
Rob,

Thanks for the info. I am hoping to see soon other methods you have used with this system. Would there be any situations in which not take the trade due to some other indicators?
  • #73
  • Jan 1, 2007 4:00pm Jan 1, 2007 4:00pm
A VERY VERY good example of the 5-13-62 would be on a daily chart right now of USD/CAD...

This is one thing from Rob Booker that DOES work VERY well in a real trend...

I can look at this chart and know pretty much right where I will make my next trade, and almost know it will be a winner.
  • #74
  • Jan 1, 2007 4:15pm Jan 1, 2007 4:15pm
From what you have learned from Rob what are you seeing in relation to the 5-13-62 and usdcad.
Quoting Tiki Trader
A VERY VERY good example of the 5-13-62 would be on a daily chart right now of USD/CAD...

This is one thing from Rob Booker that DOES work VERY well in a real trend...

I can look at this chart and know pretty much right where I will make my next trade, and almost know it will be a winner.
  • #75
  • Jan 1, 2007 4:25pm Jan 1, 2007 4:25pm
yea i 2nd that, be nice if you could explain what you see, I see price is fairly extended away from the 5/13, but i can't see any entry anytime soon, so explaining what you see would be cool



Quoting Tiki Trader
A VERY VERY good example of the 5-13-62 would be on a daily chart right now of USD/CAD...

This is one thing from Rob Booker that DOES work VERY well in a real trend...

I can look at this chart and know pretty much right where I will make my next trade, and almost know it will be a winner.
  • #76
  • Jan 1, 2007 4:30pm Jan 1, 2007 4:30pm
Quoting Tiki Trader
A VERY VERY good example of the 5-13-62 would be on a daily chart right now of USD/CAD...

This is one thing from Rob Booker that DOES work VERY well in a real trend...

I can look at this chart and know pretty much right where I will make my next trade, and almost know it will be a winner.
I guess I am missing something. The EMAs cross had occurred awhile back on the daily, how will this method help you get in not unless it crosses back down and up again?
  • #77
  • Jan 1, 2007 4:41pm Jan 1, 2007 4:41pm
Same question I have. What do you do with it now? I know he draws trend lines for target points and based on a video I just recently watched it seems he would do this with his trend lines. Am I correct. Makes sence to me.
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  • #78
  • Jan 2, 2007 11:05am Jan 2, 2007 11:05am
Quoting et_phonehome_2
Rob,

Thanks for the info. I am hoping to see soon other methods you have used with this system. Would there be any situations in which not take the trade due to some other indicators?
I am going to try to put together some additional examples this week and post them. Your question about using other indicators to filter out the trades is really good. The answer to that is no, not really -- the system is really designed to stand on its own as much as possible. I have often said that I believe, based on my testing, that the best crossover trades happen during the EUR and the NY sessions. Lately I have a preference for breakouts in the EUR / London session -- that seems to be where a lot of the activity. That can go back and forth, though.

There are plenty of critics about the system, and what I want to say most of all, is that it is super important to test any system before you personally trade it. That means that you can find out for yourself if you would add something to it, take away from it, etc. That said, i am going to look at some additional examples for you, including the ones below here.

The first chart shows that at 19:00 EST on January 1, there was a crossover. This chart is looking a lot like the one we looked at before. This crossover means to me that the trend is up on the GBPUSD and we can look for a buy on the 15 min chart as well. If we go to the 2nd chart, we see that the crossover has already occured. We can buy at 20:00 EST (when the 1hr candle has closed) or we can wait until the pair falls back a bit. We can even wait, if we want, until the pair makes a new high and buy at that point.

This is not the only way to trade using the moving averages but it is one method I have used. Like I said, I will try to post more examples as time allows.
Attached Images
  • #79
  • Jan 2, 2007 4:37pm Jan 2, 2007 4:37pm
Hi Rob,

Thanks for the samples. Quick question if you don't mind. The trades shown in your previous examples are based on crossover of 5 and 62? May I ask what's the role of the 13EMA on this situation?

Thanks for all your help. Much appreciated.

Cheers!
Wally
  • #80
  • Jan 3, 2007 5:47pm Jan 3, 2007 5:47pm
Quoting wallym
Hi Rob,

Thanks for the samples. Quick question if you don't mind. The trades shown in your previous examples are based on crossover of 5 and 62? May I ask what's the role of the 13EMA on this situation?

Thanks for all your help. Much appreciated.

Cheers!
Wally

Actually, the red line in those examples is the 13 EMA. There are ways to use the 5 EMA as well, but in these examples, it was simply not necessary so I left it out to avoid complication or extra stuff. I hope I didn't goof up and call the red line the 5 EMA in any of those examples...
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