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Attachments: How to use the 9/20 EMA setup effectively
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How to use the 9/20 EMA setup effectively

  • #81
  • Dec 28, 2009 7:29am Dec 28, 2009 7:29am

Hi Aiyahmarklah,

Thanks for sharing the EMA system... I like EMA and usually look at it using 20, 50 and 100. I will add a 9 into the system and it can offer an earlier signal too...

Thank you so much!


  • #82
  • Dec 28, 2009 7:53am Dec 28, 2009 7:53am
There are many versions of this system, I have been using the 9 and 18 MA setup. for 1 min to daily.

this method and variations has been around for a while. seen a blog out there by a guy that uses it.

the system was actually called the floor trader method used for stock futures. it works on any market. I use it on the SPI aussie share futures on 3min. I also use it on 15min -1hour time frames on FX. I also used it for months on 1min G/J

it's not the grail and takes much time to learn the aspects of the key set ups. trick is in reading the slope. There are also many other rules I have learned over time with this.

good luck with it thread poster...... (concentrate on the slope and bar formation in retrace)

below is a chart I made up for a mate....... green signals are ideal entry signals, red are to be skipped. this is for 1 min trading.

cheers
Attached Image (click to enlarge)
Click to Enlarge Name: FTMSignals 191109.jpg Size: 108 KB
  • #83
  • Dec 29, 2009 4:33am Dec 29, 2009 4:33am
for any of the followers of this method or the floor trader method, this afternoon/tonight offered some great trades on the 15min............
  • #84
  • Dec 29, 2009 8:46pm Dec 29, 2009 8:46pm
Hi Apocalypto,

Can you share more about the bar and slope, what is the key indications?
(concentrate on the slope and bar formation in retrace)

Currently, i am using 15M and the setup i am using the same as what
the author has mentioned. The problems i face is that many good trades
do not really retrace between 9/20EMA, i get more bad trades after the first crossover of 9/20EMA and the exit is either too early or late?

Please feel free to share your comments if you have any.

Thanks in advance.


Quoting >Apocalypto<
There are many versions of this system, I have been using the 9 and 18 MA setup. for 1 min to daily.

this method and variations has been around for a while. seen a blog out there by a guy that uses it.

the system was actually called the floor trader method used for stock futures. it works on any market. I use it on the SPI aussie share futures on 3min. I also use it on 15min -1hour time frames on FX. I also used it for months on 1min G/J

it's not the grail and takes much time to learn the aspects of the key set ups. trick is in reading the...
  • #85
  • Jan 3, 2010 5:03am Jan 3, 2010 5:03am
Quoting forex_bull
Hi Apocalypto,

Can you share more about the bar and slope, what is the key indications?
(concentrate on the slope and bar formation in retrace)
Hi Forex_bull

If you look at the pic attached, you see the first orange dot. that's signal one. Look at the retrace after the cross, the bars got smaller till we got the signal sell bar. once that bar made a new low the mas are pointing down nicely. Look at the second dot the slope of the mas is just about 90 degrees.

Quote
Currently, i am using 15M and the setup i am using the same as what
the author has mentioned. The problems i face is that many good trades
do not really retrace between 9/20EMA, i get more bad trades after the first crossover of 9/20EMA and the exit is either too early or late?
Unless the slope is screaming at me I only trade the fist signal after the cross. I also use 9 and 18 WMA on 15min chart. I look at 6 different pairs to increase my chances of a signal. (but I never have more then one trade open at once, UNLESS I CUT MY POSITION SIZES IN HALF. this keeps the 2% risk rule in check. I also use the ATR to give me an idea of the current market force. a signal on weak slope and weak ATR will be skipped.

Quote
Thanks in advance.
You're welcome see attached chart.

Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: slope.jpg Size: 55 KB
  • #86
  • Jan 4, 2010 5:16am Jan 4, 2010 5:16am
Quoting alkravi
Apocalypto, I'm using 9-20 method for a month already ("floor trader method" variation), seems to be profitable for me. As this is a trend continuation system I'm looking for a retrace to enter, but on your attached image I see no retraces. Is it just an example of a needed slope or you would really sell there on trend line break or MA cross?

PS If my English seems broken a little - sorry, I'm not a native speaker
Hi Alkravi,

Good to hear you're having success. There's a retrace for 1 bar then it drops further. This is called a Level 3 on the floor trader method. Normally i wouldn't take a L3 after the first signal but the slope overruled on this occasion due to the extreme angle it was on.

Tonight was another good night!
  • #87
  • Jan 4, 2010 10:00am Jan 4, 2010 10:00am
Very nice explanations Apocalypto, thank you.

My typical entries are rather simple, such as a formation of a hip or lop (some call them fractals) or break of last swing high or low. I use 5 and 3 min charts.

This set up is really good for finding entries quickly . For exits I just look at the distant of the price and 20 ema and also time and the magnitude of the move, much discretion required. Newbies can try using gann's 3 bars stop as a gauge.

Key to winning is practice, best teacher is screen time. Look at a plain bar chart then refer to 9/20 ema. Repeat this process enough you should bank above average pips consistently.

Regards
  • #88
  • Jan 4, 2010 10:46am Jan 4, 2010 10:46am
You can use it with a 30 period cci to remain with the trend. Exit when CCi touches Zero again.

You can also use the 30 VMA instead of 20 ema

I learnt this from efuturesvision.com after watching the free video.

this is agreat and easy set up to use.
  • #89
  • Jan 4, 2010 10:58am Jan 4, 2010 10:58am
Hey there Apocalypto, it's good to find others who've seen the floor trader method. I always liked it but felt very lonely because no one seemed to be discussing it any more.
You are in a maze of twisty little passages, all alike.
  • #90
  • Jan 4, 2010 11:01am Jan 4, 2010 11:01am
Quoting napalm
You can use it with a 30 period cci to remain with the trend. Exit when CCi touches Zero again.

You can also use the 30 VMA instead of 20 ema

I learnt this from efuturesvision.com after watching the free video.

this is agreat and easy set up to use.

cci is good for the inventor and system sellers only, as are many other indicators. Indicators are much abused and almost always used wrongly, me included. Before you know it, you might end up with a bunch of 3 letters acronym indicators on your chart...rsi...adx.....

regarding the MAs and the different calculations, i belief there are its uses, its just that to what extend are they useful ? Can a Zma or Kma do better than Ema ? Maybe, however the basic usasge is such, a smoothed data. In trading, most of us look for pullbacks, which are actually reversion to mean. Any random data display charateristics of reversion to mean. For me, a price reversion to mean simply means a valuable entry price (minimal drawback) as I hope the trend continues. So what kind of MA to use use is up to you, but stick to one and perfect your skill with it.
  • #91
  • Jan 4, 2010 11:07am Jan 4, 2010 11:07am
Quoting stevegee58
Hey there Apocalypto, it's good to find others who've seen the floor trader method. I always liked it but felt very lonely because no one seemed to be discussing it any more.
Sorry to intrude as ur post is for Apocalypto, however I feel that "not being widely discussed" is a good sign.
  • #92
  • Jan 4, 2010 11:16am Jan 4, 2010 11:16am
Quoting aiyahmarklah
Sorry to intrude as ur post is for Apocalypto, however I feel that "not being widely discussed" is a good sign.
Haha, sorry I just realized after posting to Apocalypto that you and others in the thread are trading it too.

I agree about it being a good sign. This method is a good solid framework for following trends; identify the trend, then buy dips or sell rallies in that trend. Sounds simple, but requires a good bit of screen time to master.

Also, it's probably not discussed much because it requires some work to trade and it's hard to automate. I'm happy to let others chase after gaudily dressed whores (i.e. holy grail indicators) and for myself to follow proven methods.
You are in a maze of twisty little passages, all alike.
  • #93
  • Jan 4, 2010 11:22am Jan 4, 2010 11:22am
Quoting stevegee58
Haha, sorry I just realized after posting to Apocalypto that you and others in the thread are trading it too.

I agree about it being a good sign. This method is a good solid framework for following trends. It's probably not discussed much because it requires some work to trade and it's hard to automate. I'm happy to let others chase after gaudily dressed whores (i.e. holy grail indicators) and for myself to follow proven methods.
LOL no worries, I totally agree with your statement. How long have you used this ?
  • #94
  • Jan 4, 2010 11:26am Jan 4, 2010 11:26am
I've been using it off and on for a few years now. Keep in mind that for me it's just experimental. Most of my real money trading is in stock options; forex and futures are areas I'm trying to develop for myself as well.
You are in a maze of twisty little passages, all alike.
  • #95
  • Jan 4, 2010 11:36am Jan 4, 2010 11:36am
Quoting stevegee58
I've been using it off and on for a few years now. Keep in mind that for me it's just experimental. Most of my real money trading is in stock options; forex and futures are areas I'm trying to develop for myself as well.
Stock options ? You must be a maths person.

I am sure forex and futures will be rewarding for you as well.

cheers
  • #96
  • Jan 5, 2010 5:12am Jan 5, 2010 5:12am
Hi Apocalypto,

Thanks for your advise and it is a great help.

I will try it out.



Quoting >Apocalypto<
Hi Forex_bull

If you look at the pic attached, you see the first orange dot. that's signal one. Look at the retrace after the cross, the bars got smaller till we got the signal sell bar. once that bar made a new low the mas are pointing down nicely. Look at the second dot the slope of the mas is just about 90 degrees.

Unless the slope is screaming at me I only trade the fist signal after the cross. I also use 9 and 18 WMA on 15min chart. I look at 6 different pairs to increase my chances of a signal. (but I never have more then one trade open...
  • #97
  • Jan 9, 2010 1:29am Jan 9, 2010 1:29am
Quoting stevegee58
Hey there Apocalypto, it's good to find others who've seen the floor trader method. I always liked it but felt very lonely because no one seemed to be discussing it any more.
Hi Stevegee,

I have been looking at it for a few years now. I know what you mean there. I have been focusing on it primarily for the last 6-7 months and many time frames.

I think it's a great method and now I am trading with InterB it all I use for FX. I have tweaked it, I have added a 13 period ATR.

Good to hear from fellow FTM users.
  • #98
  • Jan 9, 2010 1:50am Jan 9, 2010 1:50am
Quoting forex_bull
Hi Apocalypto,

Thanks for your advise and it is a great help.

I will try it out.
you welcome.

last three weeks have been great with the floor trader and the 9/20 many good trades across the majors.

I also spend a lot of time trading the GBP/AUD it's got a lot of kick in it.

The attached chart shows the GBP/AUD 15min. Green dots show clean ents the orange is a slightly more aggressive entry.

good trading.
Attached Image (click to enlarge)
Click to Enlarge Name: FTMATRGBPAUD.jpg Size: 87 KB
  • #99
  • Jan 10, 2010 1:30am Jan 10, 2010 1:30am
I'm writing a little EA for this method that I like, but I don`t have time to trade is manually, doesn`t work too bad but I need a bit more filtering ..
  • #100
  • Edited 6:05am Jan 14, 2010 4:22am | Edited 6:05am
Nice set up on the swissy tonight.

Had ma cross with great slope followed by a retrace to the 18 wma, price bounces off made a new bar high and had support from the ATR.
Attached Image (click to enlarge)
Click to Enlarge Name: swissyL1.jpg Size: 101 KB
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