How to use the 9/20 EMA setup effectively

USD/JPY and USDCHF

I took three trades today... long Swissy, short USD/JPY and a long on the cable.

as we can see on the charts the USD/JPY had the best set ups two nice shorts and a long. that the usd news helped to rally very nicely.

the Swissy also offered three trades long. These signals where a little more messy compared to the U/J.....

good trading...

Hmm, the floor trader method...I actively trade a variant of this. I do the standard setup on a M5 scale but only take trades in the direction of the primary trend.

In my university's library, we have some trading books written in the early 1930s, and breakouts, retracements, and range bound strategies were some of the first strategies ever created.

Therefore, those are the only strategies I use

Here's the link again for those who are interested in learning the Floor Trader Method:
http://www.trading-naked.com/FloorTraderMethod.htm

Here's a signal that i just took.

I was not going to post or talk about live trades but it's a good example +14 pips.

As you can see strong ATR showing decent movement of volatility. The price made a fast move down three bar retrace that hit the ma's. the signal bar made a new low by beating the last retracement bars low. Nice slope on the MAs "Sell signal". As the U/J is in more of a range the next high prob support area is the 90.69 area. my tP was just above 90.70......

bumped....................

I have been having a good look at Crude for the last 2 weeks. have taken a few live trades.

what I wanted to post is the diversity that this system can have.

some CL charts with set ups.

cont from the post above..........

CL is a awesome market to trade on 2min or under 15 min. (i prefer 2min)

Friday night was just shooting out set ups non stop.

I took two winners only,(had to watch footy) but it just amazed me on how many trades presented.

I am mainly trading Crude these days, but i was long GBP/JPY on Friday afternoon.

good trading.

chart attached shows GJ trade i took, as mentioned in post above.

Level 1 signal for +55 pips.

Good Trading.

that chart contained many good setups actually. However the last one you circled the risk reward don't look very good.

10 or 10 mate, vol supported it on the break. but your point is valid. Mainly, I just what to keep this thread going.

despite being a rather rigid system, different people still have different interpretation. Who cares as long the pips are in the pocket.

Have good weekend buddy.

well said, CL moves a lot differently to FX. Some signals can be taken on it that i would never take on FX. what I look for on those is a break of a high. these tend to work out on CL.

I appreciate your posts and comments Aiyahmarklah, a very nice weekend to you too.

Cheers,

I regularly use this setup, although I prefer to use 9 EMA and 30 LWMA . I was wondering if anybody has tried applying it to daily CFD trading ? ASX 200, etc..

Hi julz, I use it across many markets, and as per >Apocalypto< references, he does too. Yes CFDs too, I trade CFDs (esp asia stock indices) on longer time frames though, but also keeping the set up handy for hints. Short term trading (ES etc), the only difference is the length of the move, where ES feels very much like scalping, currencies tend to have more sustained moves and thus better profits.

On your preference for using other types of MAs, it do not matter as long as it works for you. My only concern is that the MAs blinds the trader from more important information on price and generally the big picture. (not referring to you). Most people mistakenly traded MAs instead of price which can be destructive to profits.

If you know how to pulse the market (borrowed from fti), then the type of MAs do not matter as much, however an indispensable tool.

Cool, thanks for the feedback, in terms of money management and take profit. how do you play it ? .

I personnaly set a stop loss at the lowest of the last 5 candles ( usually a fractal ) . and TP at 1:2 ratio so if my SL is 20 pips I aim for 40 .

Its different across different markets. Since we are on currencies, usually its the swing high or low as initial stop level much like your fractal, and I manually trail my stops with 3 bar reversal pattern. Very hard to say, if momentum picks up against me, I am out also. Then there are considerations like nearby supply and demand areas, and yet the average range is important to me as well....I can go on and on...it comes with experience.

I can comfortably stake up to 7% of my capital. Given the recent action, my stakes are smaller due to volatility, though it was a one way thing, I think one can never be too careful. 7% might seem high, and it is for most people, my hit rate is high with this system and having used it for so long already so I got no problem with it. Key is multiple time frames and momentum.

I traded this strategy on the H1 chart this morning and made $1660. This is wonderful.

Which Pair ?

so u still uses this ??


best regards

The entries is the most simple thing in this strategy.
Could anybody, please, explain his exits+breakeven using real trades as Examples? (+screenshots)

Thank you!

Simple method,,,THX! ,,,,EZ 75 pips combined,,,,Blue line signifies entrys,,,