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Simple 5 / 8 moving average crossover

  • #101
  • Sep 17, 2007 5:47am Sep 17, 2007 5:47am
Quoting NipthePips
Havent officially tried it...I was mostly stating it for brainstorming purposes...even though today, with that idea as well as some of my own, I am trying to develop a system that I might seriously test.
Sounds good, let us know how it goes :-)
  • #102
  • Sep 17, 2007 5:49am Sep 17, 2007 5:49am
Quoting Hyru
So just to confirm...
Youre looking at the daily chart... and when you see the cross occur in the MA... you wait till the days candle is over...Meaning the following day is when you take your position (@9am)

Correct?
Yes, I use the daily chart, sometimes I enter at midnight server time, other times I use limit orders at support/resistance points. Depending on the charts. I never like to risk too many pips.

Slkosier seems to be doing very well with the smaller timeframes, so that may be worth a try. I have only ever tried it on the daily charts though. If you had used the GBP/USD short signal on the daily and entered at midnight, your position would be nicely up now and you could make it risk free by trailing it and/or using a b/e stop.
  • #103
  • Sep 17, 2007 5:52am Sep 17, 2007 5:52am
Quoting Slkosier
Went short on the GBP/USD at 2.0047 and took profit at 2.0007 for 30 pips this morning.... I love this system... I am going to sit out now and wait to see if I can find another signal...Happy trading everyone...
Thats great, you seem to be doing well with your strategy so far.. well done :-)

What are you using for your tp's and stops ?
  • #104
  • Sep 17, 2007 6:33am Sep 17, 2007 6:33am
Quoting drlc01
NipthePips,

Isn't your earlier post close to the trading system from effilang in his 25-50EMA system?
Hmm i guess you can say that....but on second thought, most EMA crossover systems are very similar. Didnt realize that it matched pretty close though.
Nothing is hard, some things just take more time and discipline.
  • #105
  • Sep 17, 2007 4:29pm Sep 17, 2007 4:29pm
Quoting fayeez
hello slkosier, wat other indicators u use besides sma5/8 ...and the settings...thanx in advance .. ps- which pair and tf do u trade?

I have been using it with an RSI, MACD, & Slow Stochastic indicators and have been using them on the 1 day chart to try and get a longer trend...
  • #106
  • Sep 17, 2007 4:34pm Sep 17, 2007 4:34pm
Quoting peterM
Thats great, you seem to be doing well with your strategy so far.. well done :-)

What are you using for your tp's and stops ?
I have been setting me a TP limit of 25pips if I am going to leave the computer to be safe... And a SL of 40 pips when at the computer or more if I am gone..... I have gon to the daily charts know to try and get a better profit...
  • #107
  • Sep 17, 2007 5:32pm Sep 17, 2007 5:32pm
Quoting Slkosier
I have been setting me a TP limit of 25pips if I am going to leave the computer to be safe... And a SL of 40 pips when at the computer or more if I am gone..... I have gon to the daily charts know to try and get a better profit...
Interesting.. Do you pay any attention to support/resistance or not ?
  • #108
  • Sep 17, 2007 6:13pm Sep 17, 2007 6:13pm
Quoting peterM
Interesting.. Do you pay any attention to support/resistance or not ?

I haven't yet.. I have only been doing this for about 7 months.. I have done ok so far learned a bit.. tried different systems, but this one seems to be the easiest for me right now.. I want to learn more about S & R and Pivots and all that but I don't want to start to confuse myself with learning to many things at one time.. Do you know any good places for learning S & R?

Talk to you later..
Shawn
  • #109
  • Sep 17, 2007 8:48pm Sep 17, 2007 8:48pm
I entered last night at 2.0048 and took profit at 2.0025 for 23 pips. This was my first demo trade with this system. I guess I have learned that I should wait until retracement to 5-EMA I could have had an easy 100 pips if had done better with the entry.

Is this the case with this system, is het better to wait entering if and when the price is closer to the 5-EMA?

Eric
  • #110
  • Sep 18, 2007 1:37am Sep 18, 2007 1:37am
I use the 5 and 8 Ema crosses on the daily charts only, but confirm entry on the 4 hour. The GBPUSD short was a perfect setup. Try using pivot points. They are very powerful particularly if there is a confluence of events on different time frames.

1.On the daily there is a very clean cross with good separation and angle.
2. Price has broken a major trend line.
3. Price then falls through the monthly pivot point
4. On the 4 hour chart price has broken through the weekly pivot point
5. Solid trend down on the H4.

Pull the trigger!!

I plot the monthly pivots to show up on the daily charts and the weekly pivots to show on the H4. If you look back at some of the big moves you'll be amazed at how often price breaks though both the weekly and monthly pivots at the same time as the ema cross leading to lots of pips.

I don't use TP's. How do I know how far the market will go? I exit when I see signs of a reversal or a reverse cross. Why are people only taking 20 or 30 pips when trading the daily time frame. The good crosses don't come often. If you only take small profits you won't be able to compensate for the losses. Some of these trades can go 1000 pips. Remember the old saying, cut your losses short and let your profits run"

I entered GBPUSD at 2.0082 and I'm currently up 180 pips.

Also went short on EURCAD at 1.435 and now 125 pips in profit. Can't lose on either trade as both SL's are are at break even. For SL I either use the low or high of the previous day as PeterM suggested or 70% ATR.

I don't and won't use any other indicators. Been there already. Price action and support and resistance are the best tools.

I really like crossing MA's. I used to trade the one hour charts using a 9 and 30 EMA with an entry confirmation the other side of a Tom Demark trend line break and also taking pivots into account. I recently decided that I didn't want to stare at a screen all day and opted for the daily charts. BTW I don't think the 5 and 8 work very well on the one hour. Too many false signals.

Some people say that this system doesn't work well in a ranging market. Here's what you do.

1. Establish that the market is ranging or in a channel.
2. Switch off the computer.
3. Go to the beach.
4. Establish that the market is trending again.
5. Start trading.

Glad to contribute my 2 cents worth and good trading to everybody.
Attached Images
  • #111
  • Sep 18, 2007 1:54am Sep 18, 2007 1:54am
Here's the EURCAD trade. It's hitting some major support if you look at the weekly chart. May get out sooner rather than later.

Don't forgot to look at the 4 hour. Trend lines are important too. You can often get a better entry by waiting for a retracement to a trend line or fib level. I find the Demark trendline trader useful because it draws trend lines automatically. Good for lazy people like me.
Attached Images
  • #112
  • Sep 18, 2007 1:57am Sep 18, 2007 1:57am
Is anyone in the EURCAD. Note the weekly is stalling to the downside.
Attached Image
  • #113
  • Sep 18, 2007 5:26am Sep 18, 2007 5:26am
Quoting drlc01
I entered last night at 2.0048 and took profit at 2.0025 for 23 pips. This was my first demo trade with this system. I guess I have learned that I should wait until retracement to 5-EMA I could have had an easy 100 pips if had done better with the entry.

Is this the case with this system, is het better to wait entering if and when the price is closer to the 5-EMA?

Eric
Yes, it can be, but you will get fewer signals. It may be better to do this on the smaller timeframes.
  • #114
  • Sep 18, 2007 5:28am Sep 18, 2007 5:28am
Thanks for the insight slushfund. Pivots are definitely very important in S/R. The market nearly always bounces to some degree at them.
  • #115
  • Sep 18, 2007 9:49am Sep 18, 2007 9:49am
Quoting SlushFund
Is anyone in the EURCAD. Note the weekly is stalling to the downside.
Thank you very much for your contribution. One may well have a life and still trade. Please post your indicators or template e.g monthly, weekly pivot etc.
  • #116
  • Sep 18, 2007 10:49am Sep 18, 2007 10:49am
Quoting aelimian
Thank you very much for your contribution. One may well have a life and still trade. Please post your indicators or template e.g monthly, weekly pivot etc.
Here are the indicators I use. The weekly and monthly pivots. I've also included the Demark trendline manager.

Just thinking about time frames. Trading the daily charts allows you to have a life as you say Aelimian. I used to trade stocks and then options based on end of day data, so I was trading the daily charts. When I discovered forex a year ago I suddenly had free access to 1 minute charts. I was like a kid with a new toy. It's exciting to trade intraday and make 20 pips in 10 minutes which is easily done on the yen pairs. Problem is I found I was giving back 20 pips just as easily. The timeframe encouraged me to "overtrade". I was getting hyper and undisciplined. I started to get depressed at weekends when the market was closed. I just wanted to trade all the time.

The daily charts force you to become patient and disciplined because you might have to wait a few days for a good signal. From the accounts I've read, it seems that most succesful traders say that trading the higher time frames are more profitable in the long run.

Tony
Attached File(s)
File Type: ex4 WeeklyPivot.ex4   6 KB | 1,034 downloads
File Type: mq4 WeeklyPivot.mq4   5 KB | 1,166 downloads
File Type: ex4 P-Monthly.ex4   6 KB | 961 downloads
File Type: mq4 P-Monthly.mq4   5 KB | 1,085 downloads
File Type: ex4 DeMark Trendline Trader.ex4   28 KB | 1,095 downloads
File Type: mq4 DeMark Trendline Trader.mq4   22 KB | 1,289 downloads
  • #117
  • Sep 18, 2007 11:10am Sep 18, 2007 11:10am
Decided to close the GBPUSD trade for 130 pips profit. Felt too nervous about the interest rate statement due in 2 hours time.
  • #118
  • Sep 18, 2007 2:07pm Sep 18, 2007 2:07pm
Wow grabbed 80pips on that report..... But I had lost 70pips earlier from jumping the gun and not listening to the rules of this system when the ema's cross... I guess you learn from your mistakes....

I got lucky with that report coming out.. I think I learned to wait for a little longer cross or like some other have talked about waiting for a close of the candle after the cross
  • #119
  • Sep 18, 2007 5:33pm Sep 18, 2007 5:33pm
That was a good.. cable jumped around 150 pips.. The bigger reduction in rates than expected sure produced a great opportunity.. I got in at 2.0060 and trailed it for +55 pips. I often trade the nfp and surprise interest rate decisions when they come up as well as the ema crosses.. did any of u guys trade it ?
  • #120
  • Sep 18, 2007 5:34pm Sep 18, 2007 5:34pm
Quoting Slkosier
Wow grabbed 80pips on that report..... But I had lost 70pips earlier from jumping the gun and not listening to the rules of this system when the ema's cross... I guess you learn from your mistakes....

I got lucky with that report coming out.. I think I learned to wait for a little longer cross or like some other have talked about waiting for a close of the candle after the cross
Thats good.. well done.. making a mistake is ok, as long as we learn from them
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