EMA Cut | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

EMA crossover (ema 14 & 34) 4 replies

Questions on EMA and EMA vs SMA 6 replies

Please help code an EMA Crossover 12ema x 24 ema cross 1 reply

EMA's and MA's confiming small time correctoin ema's crossing 1 reply

EMA Close Crossing EMA High/Low Help Please! 2 replies

Attachments: EMA Cut
Exit Attachments

EMA Cut

  • #1
  • First Post: Edited 4:48pm Jul 18, 2010 4:02pm | Edited 4:48pm
Well, after much persuassion, i finally decide to put this easy but highly effective strategy i use on the thread...I've been shying away from this because of what it involves to keep a thread...I hope someone's life will be changed for the better using this.....Mine did...

On a 5 mins charts, insert the following indicators with these settings

1. Exponential Moving Average [EMA]

i. EMA 200.....applied to CLOSE... shift 0

ii EMA 55...... applied to CLOSE... shift 0

iii EMA 25......applied to CLOSE... shift 0

iv EMA 8.......applied to OPEN... shift 0

v EMA 5........applied to CLOSE... shift 0


2. RELATIVE STRENGTH INDEX [RSI]

Period 13..applied to CLOSE.... levels 20 and 80

Your graph should look like this
Attached Image (click to enlarge)
Click to Enlarge Name: ema cut.gif Size: 56 KB
God's Love For You Is Sure Never You Doubt It
  • #2
  • Jul 18, 2010 4:30pm Jul 18, 2010 4:30pm
Template loaded and ready for a life change

Thanks for opening the thread and good luck as you go forward with it.

Rebel
  • #3
  • Jul 18, 2010 5:30pm Jul 18, 2010 5:30pm
The rules?
  • #4
  • Edited Jul 19, 2010 3:38am Jul 18, 2010 5:33pm | Edited Jul 19, 2010 3:38am
Quoting D liberators
Well, after much persuassion, i finally decide to put this easy but highly effective strategy i use on the thread...I've been shying away from this because of what it involves to keep a thread...I hope someone's life will be changed for the better using this.....Mine did...

On a 5 mins charts, insert the following indicators with these settings

1. Exponential Moving Average [EMA]

i. EMA 200.....applied to CLOSE... shift 0

ii EMA 55...... applied to CLOSE... shift 0

iii EMA 25......applied to CLOSE... shift 0

iv EMA 8.......applied to...
LONG POSITION

STEP 1.
The first thing to watch for is what i call EMA 200 cut...This is when a bullish candle opens below the EMA 200 [green colour] and closes above it.

This puts us on the alert for a long signal

STEP 2
Watch for bullish candle to open and close above EMA 200 [maximum of 2 candles after step 1]...at this point we take a look at the other EMA's 5,8,25,55

STEP 3
As soon as step 2 is achieved..Watch to see if/when the EMA 5 is above EMA 8, and EMA 25 is above EMA 55....Ideally, the EMA 5 and 8 cross should be above the EMA 25 and 55 cross..and the 4 EMA's should be above EMA 200. Also candle at this point should be bullish.
RSI should be between 50 and 80

Trade is taken at the open of the next candle after these. and Target pip of 50 is set...

Please note that money management is key and for now i dont allow my
-ve trades to be more than 25-30 pips.


SHORT POSITION

DO THE REVERSE OF LONG POSITION..

For now i trade this mainly on EURUSD and still looking at 5 other pairs-USDJPY, EURGBP, GBPUSD, USDCHF, AUDUSD
Attached Image (click to enlarge)
Click to Enlarge Name: ema 200 steps.gif Size: 49 KB
God's Love For You Is Sure Never You Doubt It
  • #5
  • Jul 18, 2010 7:25pm Jul 18, 2010 7:25pm
Thanks, what about the RSI?
  • #6
  • Jul 19, 2010 3:47am Jul 19, 2010 3:47am
Here's a live example on EurGbp....like i pointed out earlier, i trade this mainly on EURUSD, but am working on other 5 pairs to see how well they perform, so i trade them with a pinch of salt [cautiously]...
Attached Image (click to enlarge)
Click to Enlarge Name: ema 200 steps live.gif Size: 60 KB
God's Love For You Is Sure Never You Doubt It
  • #7
  • Jul 19, 2010 4:02am Jul 19, 2010 4:02am
Did you trade the EU this morning at london open, that 15m candle clossed above 200ema.

Thanks

Rebel
  • #8
  • Jul 19, 2010 4:22am Jul 19, 2010 4:22am
Hi,

This looks nice. But always big problem with Ema remain range. In range you get killed. You must add a timing factor to your strategy. For example waiting one hour before london open. Avoid asia & Ny afternoon.

Regards
13
Brokers are angels
  • #9
  • Edited 5:00am Jul 19, 2010 4:25am | Edited 5:00am
i traded the EU and it gave 50 pips..but not according to the entry rules as stated here..its a no trade as the rules here..however i have a more aggresive entry approach..but i do not which to put that on this thread... the rules here is highly profitable in itself...

I trade on 5mins. tf



Quoting rebelheart
Did you trade the EU this morning at london open, that 15m candle clossed above 200ema.

Thanks

Rebel
God's Love For You Is Sure Never You Doubt It
  • #10
  • Jul 19, 2010 4:39am Jul 19, 2010 4:39am
Did you say 'i must'..i forgive your commanding tone....lol

Trade strictly adhering to the rules as stated here and you wont ''get killed''...the more reason i dont want to post my more aggressive entry style..so you wont get killed...


Quoting fx13
Hi,

This looks nice. But always big problem with Ema remain range. In range you get killed. You must add a timing factor to your strategy. For example waiting one hour before london open. Avoid asia & Ny afternoon.

Regards
13
God's Love For You Is Sure Never You Doubt It
  • #11
  • Jul 19, 2010 6:21am Jul 19, 2010 6:21am
thanks for sharing this D lib.

since the entry criteria has so many conditions and the signal may come any time, we need an indicator or EA. Checking this manually is difficult in my view.

how often you get signals on this ? looks like this will weed out all bad signals in ranging market. we need a good momentum in the price and will enter little late but will definetly get some profit before the momentum dies.

apart from 50 pips SL, do you have another signal to exit ? may be when EMAs uncross ?
  • #12
  • Jul 19, 2010 8:37am Jul 19, 2010 8:37am
The criteria is not much as you put it, all av outlined can be mastered in less than 24hrs..

candle cuts EMA200
candle opens and close above EMA 200
All EMA aligns above the EMA 200

3 steps----many? hmm..

sl is not 50.....
yes there are other ways you can decide to exit.

you can use the end point of the wave you entered from...

If you can code this into an EA please do, i'll be as delighted as well...am not into all these coding stuff..









Quoting roundrock
thanks for sharing this D lib.

since the entry criteria has so many conditions and the signal may come any time, we need an indicator or EA. Checking this manually is difficult in my view.

how often you get signals on this ? looks like this will weed out all bad signals in ranging market. we need a good momentum in the price and will enter little late but will definetly get some profit before the momentum dies.

apart from 50 pips SL, do you have another signal to exit ? may be when EMAs uncross ?
God's Love For You Is Sure Never You Doubt It
  • #13
  • Jul 19, 2010 8:38am Jul 19, 2010 8:38am
The criteria is not much as you put it, all av outlined can be mastered in less than 24hrs..

candle cuts EMA200
candle opens and close above EMA 200
All EMA aligns above the EMA 200

3 steps----many? hmm..

sl is not 50.....
yes there are other ways you can decide to exit.

you can use the end point of the wave you entered from...

If you can code this into an EA please do, i'll be as delighted as well...am not into all these coding stuff..









Quoting roundrock
thanks for sharing this D lib.

since the entry criteria has so many conditions and the signal may come any time, we need an indicator or EA. Checking this manually is difficult in my view.

how often you get signals on this ? looks like this will weed out all bad signals in ranging market. we need a good momentum in the price and will enter little late but will definetly get some profit before the momentum dies.

I'm up 140 pips from thois alone today...

apart from 50 pips SL, do you have another signal to exit ? may be when EMAs uncross ?...
God's Love For You Is Sure Never You Doubt It
  • #14
  • Jul 19, 2010 11:11am Jul 19, 2010 11:11am
These are today's signal so far...hope this throws more light on this simple yet highly effective strategy.......


1. EURGBP...+50[POSTED CHART EARLIER]

2. GBPUSD...+50

3. USDCHF... -25 +[ONGOING TRADE]

4. AUDUSD... -25
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd 5mins.gif Size: 60 KB
Click to Enlarge Name: usdchf 5min.gif Size: 50 KB
Click to Enlarge Name: uc 5min ii.gif Size: 50 KB
Click to Enlarge Name: audusd 5min.gif Size: 55 KB
God's Love For You Is Sure Never You Doubt It
  • #15
  • Jul 19, 2010 11:45am Jul 19, 2010 11:45am
I think we must looking for a quiker entry , now we gave up a lot of pips before we go in.and there is also a change that the trend changed or make a pullback to the ema's.

Maybe when EMA 5 cross Ema 200 we can go in.

dutchsignals
  • #16
  • Jul 19, 2010 2:10pm Jul 19, 2010 2:10pm
Quoting dutchsignals
I think we must looking for a quiker entry , now we gave up a lot of pips before we go in.and there is also a change that the trend changed or make a pullback to the ema's.

Maybe when EMA 5 cross Ema 200 we can go in.

dutchsignals
No harm in doing a backtesting and lets know the success rate of your suggestion.

As it is, this is a high probability rate[80% at least] especially on EurUsd.
Better to get a good confirmation by giving up little pips to get sure 50pips, than be greedy and loose your money.
When i get signals on EurUsd, i set my trade and go away...4 trades on EU this month already and well over 300pips...what more can i ask for...
God's Love For You Is Sure Never You Doubt It
  • #17
  • Jul 20, 2010 3:00am Jul 20, 2010 3:00am
Hello people...

Yesterday was good and today is getting good also... In my first post, i made mention that i was persuaded..meaning i was not too willing to open this thread...
This strategy or system or whatever, is highly effective and delivers good result every week every month....You can backtest to see for yourself..no fear of repainting since actions are based on close of candles....
You can also try it out on higher timeframe..but this will require more patience and risking more pips..i chosed the 5mins. tf because it gives me pips everyday..especially makes me feel good when i have to wait for my other main strategies to give me signals....

Well, am sorry i have to say this...this thread will not be around for long..am going to post more charts and answer questions as much as possible and on a set date, the thread will cease to be...

The 5mins tf is no problem with me because using this overtime and from my knowledge of Moving average indicators, i can look at a chart and say when a signal is likely to come and most times i ''guesticulate'' rightly. You dont have to set a target of 50 pips..if you fell you are ok with 10, 20, 30 pips, then use it and be happy....

If anyone with a good understanding of this strategy decides to be of help to this community by writting an EA for this, please do and i assure you, it will one of the most useful things you'd ever done...

I'm not bragging, but so confident about this strategy..follow the rules as simple as they are [no need to complicate things as some pple are already trying to do here] and you'll be happy...very happy..
God's Love For You Is Sure Never You Doubt It
  • #18
  • Jul 20, 2010 3:25am Jul 20, 2010 3:25am
Quoting D liberators
Hello people...

Yesterday was good and today is getting good also... In my first post, i made mention that i was persuaded..meaning i was not too willing to open this thread...
This strategy or system or whatever, is highly effective and delivers good result every week every month....You can backtest to see for yourself..no fear of repainting since actions are based on close of candles....
You can also try it out on higher timeframe..but this will require more patience and risking more pips..i chosed the 5mins. tf because it gives me pips everyday..especially...
hi D lib, yes we need a EA so that it can take all the signals as they come. checking it manually is tedious (for ppl who are not infront of the computer 24x7) and we may miss the signals

its very easy and simple system, i dont think its difficult to write a EA since we are just looking at EMA and RSI, thats all !!

i am not a coder, i can see some old EA on EMA systems and see if i can tweak them.
  • #19
  • Jul 20, 2010 4:37am Jul 20, 2010 4:37am
Who took the trade at the GBP/USD 1,5236 today.
  • #20
  • Jul 20, 2010 4:43am Jul 20, 2010 4:43am
Quoting dutchsignals
Who took the trade at the GBP/USD 1,5236 today.
long or short ? can u post the chart please ?
0 traders viewing now