Hi everyone, this forum has given me valueable information that has turned into real profits and useful tools that are a stable part of my trading strategies. My goal is to give back to this forum in appreciation for all that I've received from forex factory. I would like to share with all of you a very simple and elementary method I use to ALMOST guarantee 25 to 55 pip runs on average. I see many newbies post that they are looking for a very simple yet reliable utile system. This is for them and you veterans as well, because it simply works. I call it "The Sling Shot" set up. It uses 15EMA and 50EMA as the main components. It's quite simple, when you see the 15EMA cross over the 50EMA this is the beginning of the sling shot set up. Once the 15EMA breaks above the 50EMA, you're good on a long position any where from 25 to 55 pips (usually averages around 35 pips). I also use this set up to close short trades, instead of waiting for it to hit my s/l. Look at the attached chart illustrating a perfect sling shot. Please go to your charts and go back and find that almost every bull run started at a 15EMA/50EMA cross up. If you keep an eye out for this formation you will definitely make pips or save yourself from losing pips in a short position.
Also, your stoch will give you a heads up of a potential sling shot a few candles before it happens. I set my stoch at 5,3,3. If stoch is below 20 and is now moving above 20, then there is your signal that a sling shot is about to happen. See the stoch on the attached chart below. As well, when stoch is above 80 and has now crossed below 80, there is your heads up that the opposite set up is coming which I like to call a "Bear Sling".
The Bear Sling is obviously the opposite of the sling shot. It is when the 15EMA crosses below the 50EMA. Now you're good for 25 to 55 pips down. You may short or close long positions to minimize losses. Please see the attached charts below of classic Bear Slings set ups. Go back to your charts and look where a nice downturn was preceeded by a cross of the 15EMA under the 50EMA. OF COURSE, take into consideration where your pivots, swing H&L's, fib levels and round number levels are before pulling the trigger. Doing so obviously will tell you if you need to break major R or S levels, but more importantly it will give you your highest probable exit strategy before entering.
As a side note, you wait for the first candle at the beginning of the cross to close and use the open of the second candle as a confirmation candle to be more on the conservative side. However, I have yet to see the sling shot/bear sling fail me so I rarely wait for a confirmation candle.
I'm always trying to learn and improve my strategies. All comments, critics, improvements or additional suggestions to this strategy are welcome. Thanks to everyone here for all the helpful information and resources.
Happy Trading, Gianni Piponacci
Also, your stoch will give you a heads up of a potential sling shot a few candles before it happens. I set my stoch at 5,3,3. If stoch is below 20 and is now moving above 20, then there is your signal that a sling shot is about to happen. See the stoch on the attached chart below. As well, when stoch is above 80 and has now crossed below 80, there is your heads up that the opposite set up is coming which I like to call a "Bear Sling".
The Bear Sling is obviously the opposite of the sling shot. It is when the 15EMA crosses below the 50EMA. Now you're good for 25 to 55 pips down. You may short or close long positions to minimize losses. Please see the attached charts below of classic Bear Slings set ups. Go back to your charts and look where a nice downturn was preceeded by a cross of the 15EMA under the 50EMA. OF COURSE, take into consideration where your pivots, swing H&L's, fib levels and round number levels are before pulling the trigger. Doing so obviously will tell you if you need to break major R or S levels, but more importantly it will give you your highest probable exit strategy before entering.
As a side note, you wait for the first candle at the beginning of the cross to close and use the open of the second candle as a confirmation candle to be more on the conservative side. However, I have yet to see the sling shot/bear sling fail me so I rarely wait for a confirmation candle.
I'm always trying to learn and improve my strategies. All comments, critics, improvements or additional suggestions to this strategy are welcome. Thanks to everyone here for all the helpful information and resources.
Happy Trading, Gianni Piponacci
Attached Image(s) (click to enlarge)
Brinks truck on standby, ready to kick it in reverse!
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