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4H 5EMA System

  • #421
  • Oct 22, 2008 11:05pm Oct 22, 2008 11:05pm
Quoting alllivemind
It's about midnight EST. The current bar broke the lower ema so is a setup bar. It will close in 2 hours. Our stop will go 5 pips plus spread over the high, currently 1.6260, and will lock in a LOT of profit!
yup, im glad this one broke the lower EMA I would hate to see this get stopped out at half of the max profit.

-Sterling
Founder of Day Trading Forex Live
  • #422
  • Edited Oct 23, 2008 1:03am Oct 22, 2008 11:53pm | Edited Oct 23, 2008 1:03am
Quoting stersuhr
yup, im glad this one broke the lower EMA I would hate to see this get stopped out at half of the max profit.

-Sterling
It broke it's own high and closes in about an hour. So even if it closes on the high we still put our stop and reverse 5+ spread right? I guess we could get in a trade and if it reverses on us the "reversal bar" would not have a higher low if it goes down and stops us out, right?

2 am est: OK I placed my buy stops at 1.6318. Anyone else interpret they system this way?
  • #423
  • Oct 23, 2008 2:06am Oct 23, 2008 2:06am
Hi Alli

I have done the same and my buy stop has triggered. Although I must say, that I am still a little confused as to what makes up a set bar and therefore not very confident. As you will see in post #346, could anyone explain my mistake.
What you do is a reflection of you....what I do is a reflection of me.
  • #424
  • Oct 23, 2008 2:24am Oct 23, 2008 2:24am
Quoting Ezzy
Hi Alli

I have done the same and my buy stop has triggered. Although I must say, that I am still a little confused as to what makes up a set bar and therefore not very confident. As you will see in post #346, could anyone explain my mistake.
It looks correct to me, as long as your entry buy stop was 5 pips plus spread. I think you have the candles that close at different times, so you had a losing trade while we who watch the Alpari time stayed in.
  • #425
  • Oct 23, 2008 2:29am Oct 23, 2008 2:29am
Hi to all,

New to this thread.
Here's my first trade - as per rules as I currently understand.

cheers,
k
Attached Image (click to enlarge)
Click to Enlarge Name: gu 4h 23 oct 2008 - long.gif Size: 19 KB
  • #426
  • Oct 23, 2008 2:46am Oct 23, 2008 2:46am
Quoting alllivemind
It broke it's own high and closes in about an hour. So even if it closes on the high we still put our stop and reverse 5+ spread right? I guess we could get in a trade and if it reverses on us the \\\"reversal bar\\\" would not have a higher low if it goes down and stops us out, right?

2 am est: OK I placed my buy stops at 1.6318. Anyone else interpret they system this way?
Yes, I am also long at 1.6318 with S/L set to 1.6185. I've opened this position after the bar at 04:00 closed. The previous 2 bars did not make a proper reversal.

I think we are correct.
  • #427
  • Oct 23, 2008 4:05am Oct 23, 2008 4:05am
Sterling I will look forward to your re-worded rules. The trick is to make them unambiguous. The actual values ie 5 pips above high etc don't matter too much. Once the EA is written I will be able to run the optimiser which will determine the best settings for such values based on several years back tested results.

This could be a very worthwhile project.

Duncan
  • #428
  • Oct 23, 2008 5:03am Oct 23, 2008 5:03am
Do we now move our SL to + 5 pips below the next bar?

Just asking for confirmation, I am still getting used to this system.....as a matter of fact I am still getting used to forex.
What you do is a reflection of you....what I do is a reflection of me.
  • #429
  • Oct 23, 2008 5:17am Oct 23, 2008 5:17am
Quoting Ezzy
Do we now move our SL to + 5 pips below the next bar?

Just asking for confirmation, I am still getting used to this system.....as a matter of fact I am still getting used to forex.

I haven't as the bar has not broken the 5ema high (hope that's right!)

Steve.
  • #430
  • Oct 23, 2008 5:18am Oct 23, 2008 5:18am
Hi Sterling:

Good work for this month.....it was touch and go there for a while...

Anyways, I have a question about your charts. It seems that my 4hr bars change on 0:00, 4:00, 8:00, 12:00, 16:00, 20:00. It looks like your chart starts at 2:00. As it turns out, my signals (on my chart) are different to yours. Does this matter? Can you expand on this difference...I sure I'm not the only one that is wondering about this.

Thanks again...

Greg
  • #431
  • Oct 23, 2008 5:44am Oct 23, 2008 5:44am
I am starting to write the EA for this. My immediate stumbling block is the reference to both bars and candlesticks in the original rules published in this thread. A bar is not a candlestick.

If a bar breaks an EMA, it doesn't mean that the body of a candlestick does. If a candle breaks an EMA, is this the body or the wick? I would be grateful for clarification.

Duncan
  • #432
  • Oct 23, 2008 5:51am Oct 23, 2008 5:51am
I have been following this thread from the start and I must commend STERLING for a well done job, and for sharing this with all of us that are coming up

I hope I am not the only one that has just been stopped out from the last trade. -80 pips, and may I ask what is the next thing to do after been stopped out of a trade like this.

anybody answer me so that I will know if I am on the right track or not

Thanks
John 3:16 - From THIS love no power on earth can me sever.
  • #433
  • Oct 23, 2008 5:55am Oct 23, 2008 5:55am
Quoting Duncan
I am starting to write the EA for this. My immediate stumbling block is the reference to both bars and candlesticks in the original rules published in this thread. A bar is not a candlestick.

If a bar breaks an EMA, it doesn't mean that the body of a candlestick does. If a candle breaks an EMA, is this the body or the wick? I would be grateful for clarification.

Duncan

I would imagine that as Highs & Lows are constantly referred to, the answer must be wicks.

Steve.
  • #434
  • Oct 23, 2008 6:16am Oct 23, 2008 6:16am
Quoting Duncan
I am starting to write the EA for this. My immediate stumbling block is the reference to both bars and candlesticks in the original rules published in this thread. A bar is not a candlestick.

If a bar breaks an EMA, it doesn't mean that the body of a candlestick does. If a candle breaks an EMA, is this the body or the wick? I would be grateful for clarification.

Duncan
It can be the wick, the body or even the whole of the candle being above or below the 5ema without touching the ema

They are all regarded as the bar having broken the ema by a minimum of 5 pips
Regards
  • #435
  • Oct 23, 2008 6:55am Oct 23, 2008 6:55am
Long stopped out
Regards
  • #436
  • Oct 23, 2008 7:02am Oct 23, 2008 7:02am
Quoting stersuhr
Weve now made lower low and so we have to adjust the trade so here are the revisions, you have to do this every 4 hours depending on what the market does. Please let me know if you dont understand.

Stop loss - 1.7431
Buy Stop - 1.7431
Stop loss on the buy order - 1.7254

-Sterling

Hi Sterling

I don't understand why this trade was a profit one, as the reverse bar (blue) would make higher high and lower low, thus triggered the trade and stopped it out. Thank you.

Cheers,
Simon
Attached Image (click to enlarge)
Click to Enlarge Name: trade3.gif Size: 26 KB
  • #437
  • Oct 23, 2008 7:40am Oct 23, 2008 7:40am
Hi suwuming, looking at that chart you cant tell if the reversal bar broke the high or the low first.
I believe the high was broken before the trade was opened in this case, therefore the trade would not have been stopped out.
You have to look at a lower time frame to see for sure.
Hope you understand my explanation
Nick
  • #438
  • Oct 23, 2008 7:48am Oct 23, 2008 7:48am
Quoting 555ngone
Hi suwuming, looking at that chart you cant tell if the reversal bar broke the high or the low first.
I believe the high was broken before the trade was opened in this case, therefore the trade would not have been stopped out.
You have to look at a lower time frame to see for sure.
Hope you understand my explanation
Yah, thank a lot!
  • #439
  • Oct 23, 2008 8:06am Oct 23, 2008 8:06am
Hi Sterling

Please have a look at the chart attached:

After entering the sell trade, the reverse bar and bar #1 #2 #3 all are setup bar for buying, my question is: will you also set reverse trade from #1 to #3?

If so, take #1 as an example, what is the stop-loss for reverse bar?

Thanks,
Simon
Attached Image (click to enlarge)
Click to Enlarge Name: reverse1.gif Size: 27 KB
  • #440
  • Oct 23, 2008 8:38am Oct 23, 2008 8:38am
Quoting suwuming
Hi Sterling

Please have a look at the chart attached:

After entering the sell trade, the reverse bar and bar #1 #2 #3 all are setup bar for buying, my question is: will you also set reverse trade from #1 to #3?

If so, take #1 as an example, what is the stop-loss for reverse bar?

Thanks,
Simon
Yes, as the market continues to make lower lows on that chart each new bar would be the setup bar. For bar #1, if a reversal bar had triggered the buy the stop loss for that would be 5 pips below bar #1's low. The same would have been true for #2, and #3.

-Sterling
Founder of Day Trading Forex Live
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