DislikedFor the 12, 4, 8 CST brokers, if I am doing this correctly, a long was triggered, got stopped out, and now we are short again.Ignored
-Sterling
Founder of Day Trading Forex Live
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DislikedFor the 12, 4, 8 CST brokers, if I am doing this correctly, a long was triggered, got stopped out, and now we are short again.Ignored
DislikedPrice action of late has been favorable for a trending system. How has this system performed during the tight ranging of early summer?Ignored
DislikedHi Stursuhr,
the only part of this system that is giving me greif is stop moving,
any chance you could formalise a set of rules to explain how you do this?
and of course posting them at the begining
thanks,
Steve.Ignored
Disliked
Entry
1.) Candle must go above/below the 5EMA by 5 pips for it to be concendered a setup bar 2.) A proper reversal bar has a lower high for a short or a higher low for a long.
Doesn't this also make a setup bar? What differs a setup bar from a reversal bar?
3.) After a proper setup bar has been formed, price has to break the setup bars low by 5 pips for a short to be taken or break the setup bars high by 5 pips for a long position to be taken. In the case of a long entry you will need to include the spread in addition to the 5 pips above the high of the setup bar. In the case of a long setup bar (price below the 5 EMA) if price keeps going lower in the following bar that now becomes the setup bar. The same applies for a short. As long as price keeps going further in a direction you having new setup bars until a reversal bar triggers the trade. 4.) In addition to the reversal bar making a lower low and a lower high than the setup bar, or in the case of a long, making a higher high and a higher low, it must also be within 2 bars following the setup bar. If a proper reversal bar does not follow the setup bar within 2 bars the trade is not taken, and you wait for a new setup bar. And in this case the low of the current setup bar which is now invalid is not of any importance anymore. And the new setup bar should meet only the basic criteria of piercing the 5EMA by a minimum of 5 pips to be a valid setup bar. 5.) A proper setup bar must break the 5EMA by 5 pips or more to be considered for the trade. It must also touch either the lower 5EMA or the higher 5EMA, not both. If it does touch both it cannot be used as a setup bar.Initial Stop Placement
1.) Initial stop placement is 5 pips above the setup bars high in the case of a short, and 5 pips below the low of the setup bar in the case of a short. Most charts use the bid for highs/lows, so in the case of a short the stop must be 5 pips above the high and then add the spread as well. 2.) If you get stopped out you then reverse the trade. If you are long and get stopped out you enter short when you get stopped out. So not only do you have your stop in the market but you also have your order to change the direction of the trade should you get stopped out. Only put a trade to go the other direction in the market after a proper reversal bar closes.
How many reversals before I do #3?
3.) Lets say you got a buy signal and price went 80 pips in your favor and then went against you and stopped you out, at which point you reversed the trade acording to the rules. So where would you put your stop? Your stop would be placed 5 pips above the high from when you got in the trade. If you get stopped out of your reversal trade you do not put another reversal trade in the market.
Am I then looking for another setup bar?
Ignored
DislikedThank you Sterling for sharing this method. I really appreciate it, it is one of the few complete systems you can find on this forum.
I do have one question though,
When a setup bar doesn't get broken by a reversal bar within 2 bars does the next bar automatically become the new setup bar (So the third bar after the original setup bar), even if it doesn't make a new low or high.
I hope you understand what i am asking if not i will try to explain it better.Ignored
DislikedHave you read the first post. Print that out and then look at the first few pages for charts. I broke down every trade for the month of September. This should help. Its very repatative but that is what is needed when your first learning a system. Hope this helps.
-SterlingIgnored
DislikedYes it does become the setup bar. Being that the previous trade was cancelled you no longer look at those candles for the low. All that is required of the third bar to be a setup bar is that it breaks one of the EMA's by 5 pips. Sterling explian this a few posts back. i was talking to him today and we both agreed that the rules need to be written a little more clearly and in better order. Hes coming over tonight and were going to do this so look for the new rules tonight. Nothing on the rules will be changed, the system will remain the same...it will just be more clearly written.Ignored
DislikedThank you Sterling for sharing this method. I really appreciate it, it is one of the few complete systems you can find on this forum.
I do have one question though,
When a setup bar doesn't get broken by a reversal bar within 2 bars does the next bar automatically become the new setup bar (So the third bar after the original setup bar), even if it doesn't make a new low or high.
I hope you understand what i am asking if not i will try to explain it better.Ignored
DislikedI don't see anything in the first post which explicitly says you should look for a long if the price breaks the lower EMA and look for a short when the price breaks the upper EMA.
Is that how you're trading it?
As I understand the system: If a setup bar appears, you trade the break of the high/low of that setup bar.Ignored
Dislikedunfortunately, that is my downfall there are some discrepancies between graphs and descriptions, notably trade 12 on post 23 seems to ignore the large down spike in the middle of a trade, oh well, i'll persevereIgnored
Dislikedunfortunately, that is my downfall there are some discrepancies between graphs and descriptions, notably trade 12 on post 23 seems to ignore the large down spike in the middle of a trade, oh well, i'll persevereIgnored
DislikedOn trade 12, 3 bars before it was the setup bar and the next two bars failed to make a valid short so the bar your speaking about because the setup bar. I hope you understand this, if not I will explain further. Please edit your post so as not to confuse others thank you.
-SterlingIgnored
Disliked\"12.) As the rules state, after a proper reversal bar closes and gets you in a trade, you place a trade to switch the direction of the original trade at the stop loss. This is what happened her when we went long right when we got stopped out on the last trade.
Buy stop - 1.7987
Stop loss - 1.7793
Trade continues in are direction until a sell signal is given, at which point we exit at 1.8158 which is where we get short. + 181 pips\"
I have highlighted the candle that bothers me, as you can see the down spike seems to have been ignored, it was lower than the previous bar but no short was taken.
please don't think I am being awkward, I'm not, just trying to fathom this out
thanks,
Steve.Ignored