4H 5EMA System | Page 101 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

TEB 5ema & 12ema and 21 RSI (MTF) 1,730 replies

5EMA hilo system, and EA Idea 18 replies

4H 5EMA System's EA 79 replies

4HR 5EMA Expert Advisor 42 replies

when 5EMA crosses out of 55LWMA channel 0 replies

Attachments: 4H 5EMA System
Exit Attachments

4H 5EMA System

  • #2,001
  • Dec 1, 2008 11:53pm Dec 1, 2008 11:53pm
Quoting piptrees
Yes, I am on IBFX and this was exactly the price I shorted (1.5252). Cheers!

Hi piptrees, I am attaching the chart here, appreciate if you could show me the set up bar for the previous that yielda few hundred pips ! I thought I really understand the system, viperzz, maybe you can help me too. Thanks a lot guys .

I am currently long at 1.4926, SL 1.4854
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdnovdec2008.gif Size: 19 KB
  • #2,002
  • Dec 2, 2008 1:39am Dec 2, 2008 1:39am
Quoting k1_
Thanks everyone for working through this question, I feel that I received an important clarification from the discussion. Somebody please validate or correct my understanding:

We are always in the market with this system, so that means at all times we have a live order with SL as well as a pending order to go the other direction.

So in Kristo's example, we had the following happen:
- Setup bar to go long, SL for our current short trade AND buy stop for a new long trade set above the setup bar's high
- Reversal bar triggers both the SL (closing...
You got it. This keeps us in the market I would say 90% of the time which allows us to catch I would say atleast 95% of the big moves which is what makes this system as profitable as it is.

-Sterling
Founder of Day Trading Forex Live
  • #2,003
  • Dec 2, 2008 1:41am Dec 2, 2008 1:41am
Quoting anuar
Hi piptrees, I am attaching the chart here, appreciate if you could show me the set up bar for the previous that yielda few hundred pips ! I thought I really understand the system, viperzz, maybe you can help me too. Thanks a lot guys .

I am currently long at 1.4926, SL 1.4854
The setup bar for the short trade was the last bar on Friday before the market closed for the weekend.

-Sterling
Founder of Day Trading Forex Live
  • #2,004
  • Dec 2, 2008 2:38am Dec 2, 2008 2:38am
Quoting tonirai
Where did you read you use the numbers of the reversal bar?
You use the numbers of the setup bar!
Thanks Toni and Kristo. I got the idea of using the numbers from the reversal bar (i.e. moving the current's position SL to the reversal bar's from the last trade were in (the sell that made lotsa pips)). But I guess the reason we did that was because the reversal bar in that situation was also a valid setup bar to go in the other direction, no? And a good morning to you Toni
  • #2,005
  • Dec 2, 2008 2:38am Dec 2, 2008 2:38am
Quoting anuar
Hi piptrees, I am attaching the chart here, appreciate if you could show me the set up bar for the previous that yielda few hundred pips ! I thought I really understand the system, viperzz, maybe you can help me too. Thanks a lot guys .

I am currently long at 1.4926, SL 1.4854
Here is an IBFX chart which may explain, although if you are still learning the system best get back on an Alpari chart so you can compare to sterling and the rests posts- I don't trade IBFX either, I just have a chart handy.
Attached Image (click to enlarge)
Click to Enlarge Name: ibfxchart5h.gif Size: 12 KB
  • #2,006
  • Dec 2, 2008 2:44am Dec 2, 2008 2:44am
Quoting swakop
Hi Sterling, hi all!
That's a very interesting system, thanks Sterling.
Here's my setup, ist it correct?

Have a nice trading week,
cheers Swakop
(sorry, but my german is perfect)
Your buy entry is correct, but after bar "B" closed you should have also put a reversal pending sell order under it in the same place as the buy SL at 1.4800 and a stoploss for that sell stop above the reversal bar that just closed at 1.4954.
As of just now this sell reversal order has been triggered.
  • #2,007
  • Dec 2, 2008 2:46am Dec 2, 2008 2:46am
Quoting Kristo
.....I hope this helps.
It sure did Kristo. Thanks for the visual aide too
  • #2,008
  • Dec 2, 2008 2:48am Dec 2, 2008 2:48am
Hi all,

the sl @ 1.4800 was hit. I'm waiting for a new long setup bar?
The current bar has a lower low and so is it the new setup bar, when the bar closed?
  • #2,009
  • Dec 2, 2008 2:53am Dec 2, 2008 2:53am
Quoting swakop
Hi all,

the sl @ 1.4800 was hit. I'm waiting for a new long setup bar?
The current bar has a lower low and so is it the new setup bar, when the bar closed?
See my post 2 back in answer to your question- You should have already had a sell in place when the reversal bar closed, but now you have missed it. When your stop was hit it should have entered a sell at the same time.
  • #2,010
  • Dec 2, 2008 3:02am Dec 2, 2008 3:02am
Quoting viperzz
See my post 2 back in answer to your question- You should have already had a sell in place when the reversal bar closed, but now you have missed it. When your stop was hit it should have entered a sell at the same time.

From the chart it looks like the buy never got triggered and the original short trade is still on? Is this true or did it get triggered by a little bit, I can tell from that chart.

-Sterling
Founder of Day Trading Forex Live
  • #2,011
  • Dec 2, 2008 3:16am Dec 2, 2008 3:16am
Quoting viperzz
See my post 2 back in answer to your question- You should have already had a sell in place when the reversal bar closed, but now you have missed it. When your stop was hit it should have entered a sell at the same time.
Thanks viperzz,

but the basic criteria is
"1.) Price must go above/below the 5EMA by 5 pips for it to be considered a setup bar."

and this point i didnt have, so I must wait for a new setup bar.
Sterling, the hight of the candle was 1.4946, sl was hit and the stop buy was triggered. Thanks for the system.

Cheers swakop
  • #2,012
  • Dec 2, 2008 3:30am Dec 2, 2008 3:30am
Quoting swakop
Thanks viperzz,

but the basic criteria is
[font=Arial]"1.) Price must go above/below the 5EMA by 5 pips for it to be considered a setup bar."[color=black]

[size=4]and this point i didnt have, so I must wait for a new setup bar.
Sterling, the hight of the candle was 1.4946, sl was hit and the stop buy was triggered. Thanks for the system....
I know what you mean, that confused me at first too. What he's describing as you should have entered a sell order, this was entered as the reverse trade of your triggered trade. In order for the reverse trade to be entered, you don't need a setup bar. You enter it at the end of the reversal bar which triggered your original trade. It is entered at the same price as your original order's stop loss. This way, if the market goes against your original trade, and it hits the stop loss on it, you exit the original trade and enter a reversed one on the same price, because you'd setup the reverse order at the same price prior to this taking place.
  • #2,013
  • Dec 2, 2008 3:37am Dec 2, 2008 3:37am
Quoting CitiTrade
I know what you mean, that confused me at first too. What he's describing as you should have entered a sell order, this was entered as the reverse trade of your triggered trade. In order for the reverse trade to be entered, you don't need a setup bar. You enter it at the end of the reversal bar which triggered your original trade. It is entered at the same price as your original order's stop loss. This way, if the market goes against your original trade, and it hits the stop loss on it, you exit the original trade and enter a reversed one on the...
A reversal trade is entered at the original trades stop loss. I think that is what you were saying I just wanted to clear it up if you were saying something different.

-Sterling
Founder of Day Trading Forex Live
  • #2,014
  • Dec 2, 2008 3:43am Dec 2, 2008 3:43am
Hi CitiTrade,

thanks for your answer. But then, we've everytime a open order and for what do we use the EMA's?

Cheers swakop
  • #2,015
  • Dec 2, 2008 3:48am Dec 2, 2008 3:48am
Quoting anuar
Hi piptrees, I am attaching the chart here, appreciate if you could show me the set up bar for the previous that yielda few hundred pips ! I thought I really understand the system, viperzz, maybe you can help me too. Thanks a lot guys .

I am currently long at 1.4926, SL 1.4854
Hi Annuar,

Long set up was at A, reversal bar at B. Got stopped out and reversed(short) at red arrow. Hope this helps!
Attached Image (click to enlarge)
Click to Enlarge Name: annua.gif Size: 20 KB
  • #2,016
  • Dec 2, 2008 3:50am Dec 2, 2008 3:50am
Quoting swakop
Hi CitiTrade,

thanks for your answer. But then, we've everytime a open order and for what do we use the EMA's?

Cheers swakop
Look at it this way, first order is entered using a setup bar (i.e. using the EMA rule), then a reversal order is entered when the reversal bar closes (protection order), then you use the ema again when waiting for a setup bar to go the other direction (i.e. using ema rule), if this happens then you wait for a reversal bar, etc. etc. You see it alternates really. Of course there are other rules which you need to observe as well, but that's the basic idea.
  • #2,017
  • Dec 2, 2008 4:24am Dec 2, 2008 4:24am
Quoting stersuhr
A reversal trade is entered at the original trades stop loss. I think that is what you were saying I just wanted to clear it up if you were saying something different.

-Sterling
True, unless the reversal bar is also a setup bar to go the opposite way from the original trade, in which case the original trade SL along with the reversal order are entered using the reversal bar's high and low, not the original setup bar's.
  • #2,018
  • Dec 2, 2008 5:05am Dec 2, 2008 5:05am
OK the reversal bar short has now become a new set up bar to go long at approx. 1.4911 ( Alpari UK) - still looks as though this could run short for a while longer though with the new bar opening right at the bottom of the reversal..
  • #2,019
  • Dec 2, 2008 5:15am Dec 2, 2008 5:15am
Quoting CitiTrade
True, unless the reversal bar is also a setup bar to go the opposite way from the original trade, in which case the original trade SL along with the reversal order are entered using the reversal bar's high and low, not the original setup bar's.
Very true.

-Sterling
Founder of Day Trading Forex Live
  • #2,020
  • Dec 2, 2008 5:17am Dec 2, 2008 5:17am
Quoting petersurrey
OK the reversal bar short has now become a new set up bar to go long at approx. 1.4911 ( Alpari UK) - still looks as though this could run short for a while longer though with the new bar opening right at the bottom of the reversal..
Can you confirm, the new SL for our sell is at 1.4911, and a new pending buy stop is entered at 1.4911 with SL at 1.4779?
1 trader viewing now