EMA 25-50 Trading System (Detailed)

welcome back effi. love this thread. just found it last week, made 3 trades, 3 wins total of 95 pips+. i have been using the shorter time frames, but i do not mind sitting in front of the computer and staring, since all 3 teades were under 30 min in duration. i am trading the eur/jpy right now and i do have a comment/obsevation: follow the eur.usd and the usd/jpy when trading the eur/jpy, makes for a better entry and exit. i read thru some of the techies analysis the eur stronger against the dollar and the jpy weaker, if so, i see an easy 1000 pips this week. guess we shall see if they know what they are talking about. time to make some pips. again, welcome back.

I discovered this thread the day after you left, and I've been anxious for your return. I love this system, b/c it is so clear. Personally I find ema cross over systems challenging b/c its never clear to me when to actually enter the trade. However, this system is very clear since we are waiting for the close of a bar before entering. Anyways, love this system. Please keep up the great work, and glad you are back!

Damon
LA, CA

That's awesome lol!

Makes me happy to know that folks are making money out there from this.

Great work guys
Good luck!

Now that a lot of guys are back in the room. Please allow me to post some questions to you guys who are using this system. To me it is very clear how to use this system on a daily and 4HR Chart, but I need clarification as to using it intraday.

I understand that Effi is trading during the afternoon NY session. Personally, I trade the London open which behaves very differently. For those of you trading intraday are you using 60M charts or smaller? And when trading intraday do you wait for a bar to close and a new bar to begin before entering, or are you just waiting for the price to cross the emas? If anyone can save a picture of your chart when entering the trade I would greatly appreciate it. Thanks!

(I hope my questions make sense.)

Hi Lemmon,

Knowing Effi like I do I think he would recommend you sticking to the higher time frames with this system. That being said, if you want to trade lower time frames he has a way to do that explained in post #18 of this thread. I think the higher time frames are better myself but I must admit that I have made some good pips on the 5min when based off the 4hr like he outlines in that post.

Good trading.

Hi Nofx!

Thank you for the response. I actually know post 18 quite well. I will try to get a couple examples with charts to make my questions clearer. I guess my question is really in regards to re-entering the trend. Effi suggest a close above the 25, but let me a get chart example together to explain my question better. Okay, have a great session, and thank you for your help!

lemmon138

Looks like the EURUSD might have a candle close/open below the 50 EMA somewhat soon. If not we might be looking at a reenter at the closing/opening of a candle above the 25 EMA.

Something to pay attention to, the TIC news will be released today at 6AM PST (an hour after the open of the 4hr candle) the forecast seems a positive one. If it meets the forecast it will more than likely cause the EUR/USD to keep going down.

Last month the forecast wasn't met and there was a -80b difference which caused a 100+ pip positive move on the EUR/USD, this time around the difference will be around of +40b if the forecast is met, which again more than likely will keep pushing the EUR/USD down.

I just entered long for usd/chf and short on nzd/usd, someone confirm the trend.

thanks

YEah, they were both gold mines for today. Both of those trades are up nearly 200pips at the moment.

Think I will move my stop to +100pips on the NZD/USD and keep a trailing stop going.

Nice...

Hope to be able to start posting again on a regular basis by the end of this month, at the moment i'm just super held up with a million and 1 things, but it's really cool to see folks makin money on the thread though, and i gotta say WoW to the scalpers using this method, i don't know how you guys do it lol.

But one thing is for sure, if you can apply the same money management you do on a 5 min frame to an H4 or H1 frame, you'll be rolling cigars from dollar bills ^_^

Regards,
E. Lang

I am looking very much forward to do that

And welcome back by the way, nice to have you here agein. I am looking forward to your future posts And thanks once again.

Hey folks I have read through a majority of the thread. Just curious to see if any of you have made any minor modifications to this system. I am not refering to folks using lower TF's or such. And I am with Effi there I don't know how you guys do it either And I don't mean changes that distort the original system either. I am talking about real minor changes. I tweak in Stoch's that seems to speak better to you. Replacing RSI with CCI or changing the value of RSI. MM TP's S/L have you tweaked this for specific pairs kind of thing.

I am just looking to see if there may be some little ideas out there that may help someone who is on the verge at being successful with this system but just are not therre yet. And at the same time there may be some ideas floating around that may give some of the other experienced traders some additional tools.


So while I am asking I will also go ahead and throw out what I am doing. Instead of the 25 and 50 I use the 21 and 55. I am just kind of partial to Fib numbers and these are very close to the original methodology and work nicely for me. I also do not reffer much to RSI. I like to use price action in conjunction entry signals. So when a cross and close of price occurs I look for near by S/R that may stall the move. I look for setups like PB's or DBHLC, DBLHC, BUOVB, BEOVB, as signals to confirm the fross or continuation.

One other idea I have thought about and have not yet begun testing is using the VWB tunnel to identify TP levels. So I am curious if anyone has toyed with this idea themselves.

I do not want to turn this into a bastardized system I want to keep it as pure as can be but find out what little tweaks like the ones I have mentioned that are working for me.

GBP/JPY LONG:

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TERMINATED
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GBP/JPY SHORT:

Pending: 237.30
SL: 237.95

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TRIGGERED
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Ok honestly now, good night lol.

Just wanted to post a good Welcome back trade

Nite nite all.

Regards,
E. Lang

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UPDATE
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GBP/JPY SHORT:

Pending: 237.30
SL: 237.95

----------------------
TRIGGERED
----------------------

Intraday

T1: 10 - HIT
T2: 20 - HIT
T3: 30 - HIT
T4: 40 - HIT
T5: 50 - HIT

Swing

T1: 100 - HIT

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Comments
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Scalpers and intra-day traders should have been out by now i'm guessing.
We are at Swing TP 1, so if you haven't managed your positions yet consider doing so now and moving your SL to Entry or locking in 50%.

Best Regards.
E. Lang

GBP/JPY LONG:

Pending: 237.00
SL: 235.93

----------------------
TRIGGERED
----------------------

Intraday

T1: 10 - HIT
T2: 20 - HIT
T3: 30 - HIT
T4: 40 - HIT
T5: 50 - HIT

Swing

T1: 100 - HIT

I think its safe to say now that i'm not only back, but kicking

Hi effi
I am new for ff and trading as well. first of all i want to thank you for showing a simple and powerful method, i really like it, i tried it with gold cash market and it gave me good results. looking forward to learn from you.
Best Regards
Kenneith