Simple 5 / 8 moving average crossover

Quoting lever70

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Hello from Cornflowerland. I have been following this thread off and on. It's nice to see a return to simplicity. For the scalpers in the house, this is a great way to nab pips on the EURUSD using a 5-min chart. With a 0.9 spread on Oanda, there really isn't any excuse not to make money. Here is one way of implementing this strategy:

1) Wait for a clear cross. Not one of these half-baked sorta looks like a cross but is really two strings tangled together in a cat's paw kinda crosses. A real cross, with price rising above/below the 5 EMA with a certain authority.

2) On the next candle, wait for the price to touch the 5 EMA. Enter immediately. If price goes against you by 5 pips, exit for a loss. Otherwise, hold until the candle is fully outside the 5 EMA.

3) Exit. This is scalping. Take your pips and run for the exit. You can always re-enter on the next pullback if it's clear that the trend is strong.

4) Repeat.

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Quoting lever70

Disliked

Hello from Cornflowerland. I have been following this thread off and on. It's nice to see a return to simplicity. For the scalpers in the house, this is a great way to nab pips on the EURUSD using a 5-min chart. With a 0.9 spread on Oanda, there really isn't any excuse not to make money. Here is one way of implementing this strategy:

1) Wait for a clear cross. Not one of these half-baked sorta looks like a cross but is really two strings tangled together in a cat's paw kinda crosses. A real cross, with price rising above/below the 5 EMA with a certain authority.

2) On the next candle, wait for the price to touch the 5 EMA. Enter immediately. If price goes against you by 5 pips, exit for a loss. Otherwise, hold until the candle is fully outside the 5 EMA.

3) Exit. This is scalping. Take your pips and run for the exit. You can always re-enter on the next pullback if it's clear that the trend is strong.

4) Repeat.

Ignored

Quoting peterM

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sounds very interesting.. I have not tried it on the 5 minute charts.. only daily.. I imagine u would do a lot of trades if u do the 5 min charts.. Where would u set your stops and tp ?

Sounds like oanda has really good spreads.. I have never used them.. Are they happy for you to scalp? I know a lot of retail brokers hate it.

Pete

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Quoting Slkosier

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I have used for awhile now.. I have been scalping with them on another system(alot different)... In the EBook the trader uses Oanda for scalping...They let you go down to pipettes.. The only thing I don't like is that you are stuck with the indicators that they have and that is it and a couple of hours before they open and close for the week the spread jump big time...Eur/Usd goes from .9 to 10 and some go higher... But is a very simple broker system to use...

Slkosier

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Quoting Slkosier

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I got in on theses with the cross

Eur/Usd 1hr chart
1.4124 short
+46pips


Usd/Jpy 1hr chart
116.51 Long
+48pips

Lets see what next week can bring us...Talk to you all later...

Slkosier

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Quoting peterM

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nice pips there :-)
I am going to test it on the 5 min charts on my oanda demo next week

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Quoting Slkosier

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Let me know how you do.. If it is good for picking up small pips while waiting for a bigger cross..

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Quoting johnedoe

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5 mi is just tooo short a TF. I know there are people that trade the 5 but it just makes me crazy ....30 min, 15 at the shortest.....JMHO

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Quoting wilczek

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Hi, just to let you know I am following with interest, is there a particular set of pairs you trade on the Daily time frame. I also look at the 4 hour time frame. Having already had a look through a few examples for sure i will enter on a pullack to the 5 with a stop above the previous bars high/low, if the trade doesnt kick in then let it go, if it does the r:r is usually > 2:1. With this type of trade I then like to take off some position, a third at equal r:r.

Am thinking, currently that second half will be at 2 to 1 and then the third maybe on a 5 bar trailing.

Am currently considering 1 or 2 indicators to complement the strategy (ADX in particular for trend) but to be honest, I love keep it simple.

Hope you dont mind me joining in the forward testing and look forward to your replies.

Cheers,


W.

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Quoting wilczek

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OK, I already have a point worthy of discussion, I think so anyway. EUR at present is giving a Sell signal on the Daily, actually, this kicked in earlier but with the rules of entering on a pullback to the 5ema (which is at about 14105) the 240 has now triggered a Buy signal (which would kick in at around 14069) on a pullback to the 240 5ema. One thing that would probs pursuade me to take the short side would be that the adx (8,8) on 240 is red above blue, i.e. still on the short side.

Wondered if anyone had any thoughts on this one.

Thanks in advance, all.


W.

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