I am using a new variation of the EMA crossover approach that seems to be working nicely. It's still early days, so time will tell. I will post some trades as they happen to show what I mean.
This variation uses just 2 EMAs (I'm currently using 10 and 24 EMA) and 4 time-frames - monthly, weekly and daily (for trend) and H4 for entries. I wait until the EMAs are all aligned (EMAs all crossed up or all down) and ideally with clean space between the EMAs on all four TFs with the candles above/below them. The alignment across four TFs gives me a high degree of confidence that the trade will at least break even on H4, and more likely, go on to make decent profit most times.
I enter when price is close to the 10 EMA, or is a trigger candle (see previous post). The stop goes beyond the latest swing point, and I move it to break-even around 60 pips. Then I let the trade run until a candle closes in the wrong direction inside the EMAs. That's one way of managing the trade, but it's up to you - many people prefer different approaches to managing a trade.
This variation uses just 2 EMAs (I'm currently using 10 and 24 EMA) and 4 time-frames - monthly, weekly and daily (for trend) and H4 for entries. I wait until the EMAs are all aligned (EMAs all crossed up or all down) and ideally with clean space between the EMAs on all four TFs with the candles above/below them. The alignment across four TFs gives me a high degree of confidence that the trade will at least break even on H4, and more likely, go on to make decent profit most times.
I enter when price is close to the 10 EMA, or is a trigger candle (see previous post). The stop goes beyond the latest swing point, and I move it to break-even around 60 pips. Then I let the trade run until a candle closes in the wrong direction inside the EMAs. That's one way of managing the trade, but it's up to you - many people prefer different approaches to managing a trade.
