14 EMA Heiken strat

Hi to all,

This system i'm about to show you is something that i have been working on for some time now and I belive it is at a point where others will be able to comment/ improve on the method making it into a useful tool to add to anyones trading kit.

Like all systems it's not 100% proof but with proper money managment loses are kept to a minimum and large gains can be expected.

Here we go,

Charts: Daily / bar charts
indicators: 14 day EMA / Heiken Ashi (standard settings)
Chart provider: Met 4 from ODL (i'm on Australian/Asian time)

Short entries.

1.Two consecutive red bars
2.Note that the EMA is pointing down
3. First red bar, price closes near to the EMA. Enter once the second red bar crosses the EMA.
OR
First red bar, price crosses ema and closes below it. Wait for price on the 2nd bar to break first bars low and enter.

Long entries

1. Two consecutive white bars
2. Note that the EMA should be pointing up
3. First white bar price closes near to the EMA. Enter once the second white bar crosses the EMA.
OR
First white bar, pricecrosses ema and closes above it. Wait for price on the 2nd bar to break first bars high and enter.
Stop loss should be 100 pips from entry

There are more things to add but let's wait for the questions first before this post gets too big. http://www.forexfactory.com/images/icons/icon7.gif

Attached Below are some sample charts

Hi all
Have a training course to do. I'll be away untill tomorrow so any questions (if any) will have to wait until then.

Thanks,

Siam

siam
on your first chart
why did you not enter on the first or second red bar for a short?

The entry point would of been on the 2nd bar for the short .

As you can see there were two entries the first might of bagged 100 pips or broke even. The second would of been a nice ride right down.

Sorry guys, got to rush i'll be back in the morning.

Cheers.

Siam

Morning anybody been testing this method? it would be great to hear your results. I'll be looking for some set ups this morning , any comments would be appreciated.

Cheers.

Here are some possible trades for today.

Eur/chf
Gbp/jpy

Remember if you aren't familiar with this sytem then do some paper trading first.

Good luck,

Siam

Where do you place your stop loss and what is your exit?
Thanks

Hi,

i use a 100 stop loss then move to break even if i think the move is strong enough say 50-80 pips (not set in stone) i then trail the stop and exit when it gets hit.

This is a Trending system, and although it does work in choppier times you need to evaluate your own risk reward ratio levels to the market conditions. There are others who look at pivot points etc and of course all of this has its uses, but the thing I like about this system is that it's easy to apply without too much clutter.

Thanks,

Siam

Just to note when looking at the higher time frames especially the weekly when they line up with the daily we have a very strong signal.

I know some people use lower time frames and its something i'm looking into if anyone has any ideas on this or additonal filters that could be added to this method then please let us know.

Thanks

Recent trade Nice!

Is it me or are the markets deadly slow today?

NFP + Friday = sleeping pill http://www.forexfactory.com/images/icons/icon7.gif

Not much going on out there thinking of calling it a day.
Anyone else trading at the mo?

cheers everyone,
Have good weekend back again Monday

Siam

Hi Siam

When the 1st bar closes near ema do you place a pending stop order on the other side of ema to be triggered as the 2nd bar crosses the ema? If the answer is yes how far on the other side?

Hi Howard,

I dont normally place orders although theres no reason why you can't , as long as it kicks in after the candle has crossed the EMA by a few points ( and the EMA is pointing down) then sure . But if the previous days candle is close to the EMA i'll keep a close eye on it and look at the 4hr TF to see if any levels are about to be broken if things look good once price breaks through I'll enter.

I can code the EA if you want.

Thanks Siam

On your chart I see open and close of price bars are shown in green on HA candles without the price bars being shown, how do you get them?
I can place HA candles on top of price bars but the whole of price bars are shown and clutter the chart

Hi Howard
Use bar charts instead of candle charts.
baz

That's it, thank you