hello all, Ive been a lurker around these forums for a little while now and thought it prudent I finally donate my input for any of those who may find it useful.
Ive been trading for a little over 3 years now and have been working with this system that I picked up the theory from a book I read a little while ago with a couple of add ons I have found useful
(cant remember the book title as of now sorry)
indicators:
34 ema high
34 ema close
34 ema low
parabolic sar
stoch 20,3,3
rsi (standard)
entry long:
when the stoch's momentum is up and the candle closes/open above the 34 ema (close) and the parabloic sar is below the price and rsi +50
short entry: same as above in opposite
Notes
stops:when I enter a position i.e. for a long position I put my stop at the 34 ema (low) since this an average low price. This helps keep stops tight but with enough room to breathe.
profit targets: I like to split my position in half for a r/r of 1:1( entry - stop= profit pip amount, for example I enter long on usd/jpy at 105.05 and my stop is 104.75 I will target 30 pips after entry) AND the other 1/2 position to let ride and when its moved up enough I move my stop to break even. This method helps greatly as to lock in profits and still let half a position run if its a strong trend.
As you will see the 3 moving averages after the trend has developed will act as a fair value area for support and resistance. As well when the 3 ema's are narrow its fair to say its in consoldation, and when its farther apart this means its a strong trend.
For some of you counter trend traders when price has been for example overbought and start to reverse you can short it with the target to the 34ema high.
Think of the 3 34ema's as a rubber band to price, price will always come back to the 34 ema close
thanks all and I await for positive criticism and response!!!
Enjoy
Ive been trading for a little over 3 years now and have been working with this system that I picked up the theory from a book I read a little while ago with a couple of add ons I have found useful
(cant remember the book title as of now sorry)
indicators:
34 ema high
34 ema close
34 ema low
parabolic sar
stoch 20,3,3
rsi (standard)
entry long:
when the stoch's momentum is up and the candle closes/open above the 34 ema (close) and the parabloic sar is below the price and rsi +50
short entry: same as above in opposite
Notes
stops:when I enter a position i.e. for a long position I put my stop at the 34 ema (low) since this an average low price. This helps keep stops tight but with enough room to breathe.
profit targets: I like to split my position in half for a r/r of 1:1( entry - stop= profit pip amount, for example I enter long on usd/jpy at 105.05 and my stop is 104.75 I will target 30 pips after entry) AND the other 1/2 position to let ride and when its moved up enough I move my stop to break even. This method helps greatly as to lock in profits and still let half a position run if its a strong trend.
As you will see the 3 moving averages after the trend has developed will act as a fair value area for support and resistance. As well when the 3 ema's are narrow its fair to say its in consoldation, and when its farther apart this means its a strong trend.
For some of you counter trend traders when price has been for example overbought and start to reverse you can short it with the target to the 34ema high.
Think of the 3 34ema's as a rubber band to price, price will always come back to the 34 ema close
thanks all and I await for positive criticism and response!!!
Enjoy
