EMA Cross and Stochastic :
I have been following this system for quite some time now, and believe me, have never had a losing day. The system is very simple and though I cannot guarantee massive profits, you will get consistent returns.
It utilizes Dual time-frame Momentum and EMA Crossovers on a 5 Minute Chart and is best suited to trade Futures, though any stock can be traded with this system over any time frame.
Coming to the actual system now, the following is required for a long position to be initiated:
Entry Strategy
1. In the 30 Minute Chart, the Stochastic should be bullish.
(That is, the fast stochastic line should have crossed over the slow line. It does not matter how long ago the crossover took place, it should just be above the slow line and should be going upwards).
2. In the 5 Minute Chart, the Stochastic should be bullish as well.
(Fast stochastic line should have crossed over the slow line and should be moving upwards. It should not be in overbought condition yet, that is, it should not have crossed 80 yet).
3. The 5 Period EMA crossed over the 13 Period EMA from below and moves upwards.
When all three conditions are met, we buy, placing stoploss at the low of the last bar or the bar to the left of the last bar, whichever is lower.
Stochastic Setting is 8,3,4 for this system.
http://img195.imageshack.us/i/20339681.jpg/
http://img194.imageshack.us/i/34715097.jpg/
ema-cross-and-stochastic
Exit Strategy
1. When fast Stochastic reverses from it’s upward move, curves downwards and crosses the slow line from above, sell half of the units.
2. If the next bar goes below the low of the previous bar, exit completely, otherwise keep a tight trailing stoploss and enjoy the continuing bull market
For going short, the exact opposite of the above rules is used.
Thats it! I have been following this and making around 50 pips everyday.
Need an indicator to alert and point an arrow on the crossover.
Regards
PS : Credit goes to the original founder of this system "Pride" on traderji.
I have been following this system for quite some time now, and believe me, have never had a losing day. The system is very simple and though I cannot guarantee massive profits, you will get consistent returns.
It utilizes Dual time-frame Momentum and EMA Crossovers on a 5 Minute Chart and is best suited to trade Futures, though any stock can be traded with this system over any time frame.
Coming to the actual system now, the following is required for a long position to be initiated:
Entry Strategy
1. In the 30 Minute Chart, the Stochastic should be bullish.
(That is, the fast stochastic line should have crossed over the slow line. It does not matter how long ago the crossover took place, it should just be above the slow line and should be going upwards).
2. In the 5 Minute Chart, the Stochastic should be bullish as well.
(Fast stochastic line should have crossed over the slow line and should be moving upwards. It should not be in overbought condition yet, that is, it should not have crossed 80 yet).
3. The 5 Period EMA crossed over the 13 Period EMA from below and moves upwards.
When all three conditions are met, we buy, placing stoploss at the low of the last bar or the bar to the left of the last bar, whichever is lower.
Stochastic Setting is 8,3,4 for this system.
http://img195.imageshack.us/i/20339681.jpg/
http://img194.imageshack.us/i/34715097.jpg/
ema-cross-and-stochastic
Exit Strategy
1. When fast Stochastic reverses from it’s upward move, curves downwards and crosses the slow line from above, sell half of the units.
2. If the next bar goes below the low of the previous bar, exit completely, otherwise keep a tight trailing stoploss and enjoy the continuing bull market
For going short, the exact opposite of the above rules is used.
Thats it! I have been following this and making around 50 pips everyday.
Need an indicator to alert and point an arrow on the crossover.
Regards
PS : Credit goes to the original founder of this system "Pride" on traderji.
The One Who Makes The Thunder Roar Also Hears A Butterfly Sigh - Ruzbeh
