EMA 25-50 Trading System (Detailed)

Imagine you go to a boxing match and you want to bet.

You're given the option of betting on the winner in the following of two situations:

1: When the fight opens
2: When the fight closes

Ask yourself in which of the scenarios you'd have a better chance of making money when you bet. That should answer the question.

*sigh... hint hint >> Wait for a close only.

Regards,
E. Lang

and what abt my qs, affilnag....

i have just one more qs which is a bit more technical...this startgey works on the 4H chart, now for instance i see a signal 10 pm my time, if i do not enter i will ofcaorse mis on the opp and unlike scalping might not see a favorbale conditions for many days then, but if i enter there is always risk of a the postion against me since ofcaorse i won't be there all night just looking at my screen, ofcaorse night is'nt the only case there are many times within the day when we are off our computer screens...so what exactly can be done to make sure that you end up being profitable in the end,

IF you've missed an entry, just find another currency pair, there is more than enough opportunities available.

i read your trailing stop strategy and it shoudl woprk like magic, thanks for that...but i mentioned that i am entering 10pm so my fist SL will ofcaorse be below my order, so does this mean i will make a loss the times when it all goles against me, if so how many times does that usually happen?

Regardless of the system you use, you must keep account of your surrounding. Use near by swing lows and swing highs for your SLs, it will minimize chances of getting whipped out of a position, plus you know that once you're out, it's not just you and the market is doing something new to which you should adapt... nothing works like magic here.

conversely, if i have eneterd the trade some where during the day or a few days back and the correct signal to exit comes 3 am during which i will ofcaorse be not qround...then what??

There is no "correct" signal to exit. If everyone exited at the correct time, price would move in sharp angles all the time.

As for what to do, you can trail your SL manually or automatically and scale out of your positions in parts.

can you advice a stratgey to cover all of this up? (TRAILING STOP LOSS)

The name is Effi Lang.... not whatever u wrote.

you forgot the http://www.jubailforums.com/vb35/ima...es/gun_nep.gif here!

Have a nice weekend!
Gnat

*sigh.... lol

I know this is may be a somewhat unusual pair, but I noticed separately a short signal on USD/JPY, and weakening (?) of the NZD/USD. If indeed NZD is weakening AND JPY is getting strong, this will be a powerful signal. While price is still about 80 pips above the H4 50EMA, I am watching this pair closely for a potential early entry.
What do you think?

http://www.forexfactory.com/showthread.php?t=71487

Dear Mr.E.Lang:

I am going through this thread with interest and as a beginner i am trying to understand the entry and exit criteria as mentioned at the begining of this thread.

i have to request your clarification and guidance:

In the entry and exit criteria mentioned it does not mention anything on 25-ema and the stochastic parameters and how they are to be used,

Could you please guide about the role of these two parameters and how are they to be used in conjunction with entry and exit criteria mentioned

thanks in advance.

gandhiadg.

i have not seen anyone here for the last month as effilang has started another threaad, but i think i figured something out that has turned the light bulb on. i need to try this out and maybe i can put my 2 cents in or just confirm what effi has said all along. this could be very exciting news that i finally understand!!! sometimes i am thickheaded!!

anyone else around????

Of course. But instead of announcing something I'd rather like to hear what you found out. I for myself have found other suitable strategies to play with.

Maybe I can help, Look at a 4 hr TF and put a 25ema, 50ema and I also like to see an 8ema. They should all be different colors. Also put up a SS at 21/8/8. Now look at your chart and based upon the price action, i.e. E/U can you see where the SS crossed above the 20 or below the 80. Notice that the price action or trend followed the SS up or down. Your entry would have been after the crossover and when the SS moved below the 80 or above the 20.

Now notice another way to enter the trade: After the 8 crosses the 25 and the candle continues in the direction of the 50 and starts to pass through it you have an entry signal. Exit when the SS gets to below 20 or above 80.

Now because some traders don't have enough capital to absorb the fluctuations on a 4 hr TF let's look at a 1 hr. First change your SS to 5/3/3.
When you have a crossover on the SS above the 80 passing below the 80 go short and when you have a crossove on the SS below the 20 passing above the 20 go long. If you can confirm the trade with a crossover of your 25ema and 50ema it will be a really good trade. Then I forget about the SS and go with the 25/50 crossover and then look for good separtation but when the SS gets way below the 20 or above the 80 it may be time for an exit. Always test a new trading system on a demo account and then tweek it so that it becomes your own.

Effilang, How do I find out about your daily system? Thanks.

the rsi is key to this as well. the rsi must be above 50 or below 50, then ride the rsi until it breaks the 30 or 70 going the other way depending on long or short. seems that the price will continue in same direction until rsi touches the 70 or 30 going the other way. i will try the ema 8. i looked at the shorter time frames to see if i could use this method as a scalp for a few pips, need some more time to look at entry and exit, but i think the same method works, just entry and exit is critical, as well as sticking to your pip goals. that is what i meant as the light going on. i was bad on entry and exit.

i am assuming the SS you are talking about are stochs. if it is something different, would appreciate clarification.

let's not let this thread die

UP

well, effi has started another thread and is probably paying more attention to that roight now. i do hope someone can contact him and let him know we need just a little guidance from time to time so we can understand all the nuances of this system. i will work on this system and make some trades this week and let you know how i did, then maybe make some calls.

your system looks good. i am going to check it out.

I for one am interested in seeing the continuation of this thread. I still trade this system on the 4h but have made a minor modification which I have found filters out a few more false signals. Basically I have made a tunnel on both the ema and rsi indicators. I find it helps my decision making on the borderline signals. Chart is attached. I find the mods get me into the majority of the successful trades, albeit a fraction later on some.

K

HI Kristo,
would you elaborate on your modifications....looks interesting.
Thanks
AT

Hi AT,

The mods I have made are additional levels on both the RSI(+5 and -5) and MA (+10 and -10). I have also set my RSI to 10. The reason I made the changes is because I found myself scrutinizing the EMA cross too much and with these mods I am better able to take a step back and review the prevailing price action, which I believe is also important. It would be fair to say that I have missed some trades which have turned out to be profitable, but I have also refrained from entering some trades which have proved to be reversals.

One thing I have noticed is that price does not usually hang around the 55ema for very long, and if I miss an intial entry based upon the rules I find I am often able to enter at a later stage. On many occasions following a primary cross price will re-visit the 55ema providing additional entry opportunities. Perhaps I am clouding the charts too much, be we have to be confident in our methodology. In addition, the mods do not prevent me from seeing actual crosses as they happen according the original rules.

I should say that I traded the original method profitably, as set out by Effi at the beginning of the thread, so perhaps I should have left "well-enough" alone and have attached a chart without the mods for comparison.

Thanks to Effi's generosity this system has become my primary 4hr system which I trade across 10-12 pairs and I would like to see the thread return to some activity with the involvement of other traders.

K