Trend Strength Indicator + 3EMA

Hello,

This system uses the trend strength indicator on the daily chart as a filter for the trend strength indicator on H4 for entries. If you have the patience to wait for the proper setup and use correct money management, you will make a profit with this.

Setup
Charts:
1. Trend Strength Indicator. (orange)
2. 3EMA attached to indicator. (red)

Entry
On the daily chart, decide which way the trend strength indicator is showing the trend. Move to the H4 chart and wait for the trend strength indicator to go above or below the 0 line, opposite of the last cross on the daily chart. Enter when the trend strength indicator crosses the 3ema in agreement with the daily chart.

Important
Do not take the trade if the exit goal is not at least 2:1.

Stop Loss
If Short: Place stop loss at most recent swing high.
If Long: Place stop loss at most recent swing low.

Exit
Place take profit at the next point of support or resistance on the H4 Chart.

Daily Chart
Red line shows cross to show trend is down. After the vertical red line, we only take short entries on H4.
http://img187.imageshack.us/img187/1102/daily.gif
Click to enlarge

H4 Chart
Gold lines show our short entries. (Red line from Daily Chart)
http://img96.imageshack.us/img96/8949/68920538.gif
Click to enlarge

Conclusion
The real key to this or any strategy is using proper money management. This system will win more than it looses, and it will make you a profit, but only if you use sound money management techniques.

I'll try and post some entries this system generates over the next few days or so. Let me know if you have any questions. Indicator and template attached below.

Good Luck,
CGiant

An alternative exit strategy is to hold until you see a reverse signal on H4. This can lead to very large gains, but you will be stopped out more often.

CGiant on this chart we are still waiting for a valid entry is that correct.. price has droped over 700 pips from the daily cross thats a long time too sit on your hands..

Rebel

Hello Rebel,

Using your image, the circle was an entry into a short trade:

Thanks for clearing that up


Danny.

Hi CGiant,

I add trendstrength in my system, but there is only one line.
How do i add Moving Average 3 in it?

Hey tj,

First you will need to open up the navigator in MT4 (Ctrl + N). Then click on indicators and drag 'Moving Average' onto the trend strength indicator window on your chart.

Enter the following settings:
Period: 3
MA method: Exponential
Apply to: Previous Indicator's Data

Click ok, and the 3 EMA will be on your trend strength indicator.

Hope that helps

i sugget you

upload some box chart

if price entry box

your system work good still??

any trend system.in this mouth.....all get great pips.

there is nothing special in your system, but thanks for share anyway

---------
Elliott Wave analysis

I am not sure if it is not special, it certainly seems simple and IMHO the simpler the better......but is it profitable?

CGiant, are you still trading this system? are you able to confirm entries/possible set ups so we can follow the system and learn as we go. Currently we have crosses on the daily on EUR/GBP and Eur/jpy, so we now look crosses of ema and below/above the 0 line?

Thanks

Dear Wjqblog,

As new bie can u tech how to upload the box chart.

Thank you.
mnoor

Hi CGiant,

This look simple, but more clarification needed.

Are the golden lines on the 4 hrs drawn by the system or u manually draw them to show entry?

From ur explaination, once there is a cross on the daily, shown by the vertical line, drop to the 4hr and look for entry. Is the line on the daily red because it is a sell, so if it is a buy, will it be another colour?

Thanks for more clarification.

Hi Cgiant
I agree with Ibuks, regarding further clarification, particularly sorrounding entries. In general, I am enjoying testing this system.

Cheers

ran across this site from another..wondering why there is no current post?? is the thread dead??

R.I.P.

Hello,

I have been working on adapting this strategy to lower time frames. The way it is written works great as is, and I am still taking trades with it, but personally I like to work on lower time frames.

Hi CGiant if you are still reading FF Forums,

I chanced across your thread from a few years ago, and your idea looks interesting. Thanks for sharing the idea.

I would like to clarify a discrepancy between the rules set out in your first post and your reply to Rebelheart (posts 3, 4 on this thread). In your rules you say that we should wait for the Trend Strength Indie (TSI) to cross the 0-line and then cross its 3ema.

When I look at the D1 and H4 charts of EurUsd for December 2009, as posted in Rebelheart's post and your reply, I don't see a 0-line cross before the area you suggested should be the entry. If your reply to Rebelheart is correct, I'm guessing your rules should state that on the H4 time-frame the TSI should cross its 3ema in the same direction as the Daily time-frame TSI crossed its 3ema, but not necessarily the 0-line. Is this correct CGiant, or maybe anyone who's been using this system?

cheers

Im still using this - making great returns - just wish i could get a screen covering all the signals