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Yet another moving average crossover system

  • #401
  • Oct 25, 2011 7:14am Oct 25, 2011 7:14am
Quoting forexpippy
I think my entry was OK, however hitting TP was more luck than anything else, EURUSD dropped 100 pips in the 15 mins following my TP being triggered!!! Could have been a different story if I had got in later.....

A good lesson in today's market though....always set a stop loss ha ha!!

I'm finding the 3/8 EMA crosses on the M5 cut out alot of the noise, which actually makes it useable as a TF for determining entries. Normally I wouldn't ever go below M15, so it's nice to have something that can give me "reliable" confirmation that little...
I do injury law...what we call here, an ambulance chaser...although I am really no such thing....am very "picky" about cases.
  • #402
  • Oct 25, 2011 7:40am Oct 25, 2011 7:40am
Quoting lawgirl21
I do injury law...what we call here, an ambulance chaser...although I am really no such thing....am very "picky" about cases.
We use the same term here, although it's more as a result of prolific advertising by less scrupulous firms that have realised there is considerable margin in having high volume, quick settlement case loads.

I wonder how many lawyers trade? The education and training/experience probably helps with the volume of research and logic you need to apply to trading, but I doubt many find the time or can be bothered (one of the reasons I trade the London open is because all my research and chart checking conveniently takes place as I eat breakfast!).
  • #403
  • Oct 25, 2011 7:49am Oct 25, 2011 7:49am
Quoting forexpippy
We use the same term here, although it's more as a result of prolific advertising by less scrupulous firms that have realised there is considerable margin in having high volume, quick settlement case loads.

I wonder how many lawyers trade? The education and training/experience probably helps with the volume of research and logic you need to apply to trading, but I doubt many find the time or can be bothered (one of the reasons I trade the London open is because all my research and chart checking conveniently takes place as I eat breakfast!).
I would prefer to trade the London open, but that's midnight here, so can't do it. I do start trading around 5:00 am and catch a couple of hours of London...still there are plenty of good trades during the US session and Asia.

I know several lawyers who trade and it's fun running into them because we can talk the talk. I have tried to get family and friends into it, to no avail. So, finding a "live" person to talk to about trading is a real treat.
  • #404
  • Oct 25, 2011 8:03am Oct 25, 2011 8:03am
Hey LG,

I am trying to recreate your exact template.... and mine does not look anything as pretty as yours...

have you got yours saved as a template so those of us who haven't got our own can use yours and change it to suit our own preference?

Matt
  • #405
  • Oct 25, 2011 8:08am Oct 25, 2011 8:08am
Quoting Mattdede
Hey LG,

I am trying to recreate your exact template.... and mine does not look anything as pretty as yours...

have you got yours saved as a template so those of us who haven't got our own can use yours and change it to suit our own preference?

Matt
I do have it saved and would be happy to share it, although you will have to tell me how.

I think it would be easier to save your own template however. What exactly doesn't look like mine?
  • #406
  • Oct 25, 2011 8:14am Oct 25, 2011 8:14am
Quoting lawgirl21
I do have it saved and would be happy to share it, although you will have to tell me how.

I think it would be easier to save your own template however. What exactly doesn't look like mine?

Hey LG,
If I am completely honest, mine doesn't look at all pretty and pleasing to the eye. It does sound daft, but I like things to be perfect and if i feel good and i see my charts look good, i tend to be that much more "on point" when it comes to trading.

We all have our silly quirks, and this is one of mine - just like when i play soccer - i have to iron my kit so i look the part when i step on the field! lol Yeah... mild OCD comes to mind

erm to save a template, you would just right click on the screen and click save as and save it... i believe...

sorry to be a pain.
  • #407
  • Oct 25, 2011 8:33am Oct 25, 2011 8:33am
Quoting lawgirl21
I do have it saved and would be happy to share it, although you will have to tell me how.

I think it would be easier to save your own template however. What exactly doesn't look like mine?
Hello Lg

My daily line boxes are not the same as yours.

Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 14 KB
  • #408
  • Oct 25, 2011 8:35am Oct 25, 2011 8:35am
Quoting Aj1
Hello Lg

My daily line boxes are not the same as yours.

Attachment
What indicator is giving those grey boxes ??
Thanks.
  • #409
  • Oct 25, 2011 8:55am Oct 25, 2011 8:55am
Quoting michaelB
What indicator is giving those grey boxes ??
Thanks.
Hello michael

Those are the daily line boxes, they show the 4 candle 1 hr breakout, although I am not sure if my settings are the same as Lg's.

Aj1
  • #410
  • Oct 25, 2011 10:17am Oct 25, 2011 10:17am
Aj
open the daily boxes and you can adjust the Start hours and end hours, depending on when you want those lines drawn.

in MT4, click "view", then "market view", the time as per your broker will be at the top.

In the Daily box, edit, adjust the start hours (normally set to 0, GMT) adjust it -/+ 1,2,3 etc depending on your time zone and when you want those to display.
End hours should be +4 of what ever you enter in Start hour box. This will give you a 4 hour box with the greyed box. You can play with it. It will draw the box to whatever time frame you want ie 1-23hrs. and +/_ GMT
The start hour is based on GMT
This is how I understand it. Hope it helps http://www.forexfactory.com/images/icons/icon7.gif

Fullpip
Attached Image
  • #411
  • Oct 25, 2011 10:51am Oct 25, 2011 10:51am
Hi and thanks for the great thread.

There are some things confusing me, firstly about angle of the moving averages for entry (12-2 for strong up etc) - angle is determined by level of zoom so cannot be properly determined for moving averages. Also, because angle is not fixed because of zoom, why the need to scan 2 different charts at all or are you waiting for the higher TF bar close, some charts don't seem to indicate this? Just place x4 or x6 MAs on the smaller chart (on 5 minute chart place 3, 8, 18, 48, 1200), or am I missing something?

Secondly - the rules say that first trend is determined on the higher timeframe, then a cross of the fast averages, with confirmation then from a fast average cross on the smaller timeframe - that doesn't seem to be what people are posting as trades.

If trading 30 minute and 5 minute (say) and the fast averages have crossed they will 9/10 have already crossed on the 5 minute - and people aren't posting 2 different time-frame charts anyway.

Now, to me, confirmation means the following: Fast EMAs cross on the 30 minute which shows some kind of momentum, then drop to the 5 minute for the pull back and cross back and then cross again for the entry on the 5 minute - that's confirmation surely? i.e. it's pulling back to where you expect (source of breakout) and then the ma cross confirms entry on the 5 min, it's the same deal as using HA candles. Anything else doesn't make sense in terms of how the market moves and will likely give you big drawdowns before (if) going onside.

http://i1202.photobucket.com/albums/.../lawgirl30.gif




http://i1202.photobucket.com/albums/...r/lawgirl5.gif


Thanks
  • #412
  • Oct 25, 2011 11:09am Oct 25, 2011 11:09am
Thanks fullpip.

Aj1
  • #413
  • Oct 25, 2011 12:44pm Oct 25, 2011 12:44pm
Quoting Mattdede
Hey LG,
If I am completely honest, mine doesn't look at all pretty and pleasing to the eye. It does sound daft, but I like things to be perfect and if i feel good and i see my charts look good, i tend to be that much more "on point" when it comes to trading.

We all have our silly quirks, and this is one of mine - just like when i play soccer - i have to iron my kit so i look the part when i step on the field! lol Yeah... mild OCD comes to mind

erm to save a template, you would just right click on the screen and click save...
Mattdede, please use it template and follow the instructions of Fullpip (Post # 410).
Attached File(s)
File Type: tpl lg macs ema.tpl   22 KB | 393 downloads
Enter Signature
  • #414
  • Edited 3:29pm Oct 25, 2011 2:21pm | Edited 3:29pm
Hey, JPassion

LG will probably want to add her own comments, but I thought I'd try to answer your queries as best as possible.

Quote
firstly about angle of the moving averages for entry (12-2 for strong up etc) - angle is determined by level of zoom so cannot be properly determined for moving averages.

That's definitely correct. However, I've been using a form of rough calibration on my charts to determine what is a strong movement up/down. I like the idea of having a defined range of movement for entry (e.g. 12-2), so once I have identified all my potential set ups for the day, I briefly turn on the candlesticks and adjust my zoom so that a long solid candle up (or series of smaller solid candles up) results in a 3 EMA angle of 12-2. This means that when I turn the candles off and I'm keeping an eye on the charts from my iPhone, I know that and 3 EMA in the 12-2 position must have been the result of considerable momentum. It's not an exact science (and we are using EMAs to replace candlesticks here), but it works for me and keeps me checking the charts for the same thing.

However, you are completely right, the angle can be changed by zooming in or out. This should probably be put in the first post to avoid confusion when people notice that their charts vary from the ones posted here.

Quote
Also, because angle is not fixed because of zoom, why the need to scan 2 different charts at all or are you waiting for the higher TF bar close, some charts don't seem to indicate this? Just place x4 or x6 MAs on the smaller chart (on 5 minute chart place 3, 8, 18, 48, 1200), or am I missing something?

I might be missing something here, but I find the check against 2 completely different timeframes gives a clearer picture of over all trend/pattern and makes it easier to understand what the PA is doing. Having a load of MAs on a small TF can be pretty confusing (the idea is to keep this simple visually).

Quote
Secondly - the rules say that first trend is determined on the higher timeframe, then a cross of the fast averages, with confirmation then from a fast average cross on the smaller timeframe - that doesn't seem to be what people are posting as trades.

If trading 30 minute and 5 minute (say) and the fast averages have crossed they will 9/10 have already crossed on the 5 minute - and people aren't posting 2 different time-frame charts anyway.

Yes, there's been some slight deviation/experimentation in respect of the rules (people trying to make it fit with their own trading), which IMO will help people identify what works well and what doesn't, rather than 100 pages of everyone trading the same as suggested in the first post (which might be great, but there's always room for improvement and fitting in with your own style!).

After spotting a cross on the higher TF the reason for checking for confirmation on the lower TF was to ensure that the PA hadn't decided to move off in the wrong direction. Obviously, unless you are sitting on top of your charts waiting for the H1 bar to close and actually see the 3/8 cross, then you might be a little bit after the cross and need to check things are still set up for a good entry.

Therefore I drop down to M15 and check that the 3/8 EMAs are pointing in the right direction, or there has been a recent cross....or if they are flat or heading the other way, I'll wait for the recross before entering, otherwise the set up becomes invalid and then I'll just move on to something else.


Quote
Now, to me, confirmation means the following: Fast EMAs cross on the 30 minute which shows some kind of momentum, then drop to the 5 minute for the pull back and cross back and then cross again for the entry on the 5 minute - that's confirmation surely?

If the EMAs have crossed on the M30, showing momentum, waiting for a pullback might lose you the strongest part of the move. This is obviously entirely dependent on what has triggered the cross and where you are entering. For example, I use this strategy in conjunction with a breakout of a 4 hour consolidation range prior to the London open. When there is a H1 3/8 EMA cross inside the box, I wait for it to have moved outside the range (however, if I'm also trading the range I will already be in after a bounce off support or resistance), check M15 that the entry is still valid (i.e 3 EMA pointing in the right direction) and then I'll jump onboard. There's obviously a good chance there will be a pull back, but I'm only setting my initial TP to around 20-30 pips, so don't need/want to hang about for a pullback and miss the first move. If it's a false breakout it will still often give around 20 pips, and I tend to re-enter after the first pullback anyway, setting a nice tight SL.

This is my own opinion, based on how I have been trading this strategy, so it might not be correct or indeed make any sense at all!
  • #415
  • Oct 25, 2011 2:35pm Oct 25, 2011 2:35pm
Hey LG, glad to try out another one of your systems. I'm currently in this one as my first trade using this. I'll update as it goes.
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  • #416
  • Oct 25, 2011 3:47pm Oct 25, 2011 3:47pm
Quoting forexpippy
Hey, JPassion

LG will probably want to add her own comments, but I thought I'd try to answer your queries as best as possible.



That's definitely correct. However, I've been using a form of rough calibration on my charts to determine what is a strong movement up/down. I like the idea of having a defined range of movement for entry (e.g. 12-2), so once I have identified all my potential set ups for the day, I briefly turn on the candlesticks and adjust my zoom so that a long solid candle up (or series of smaller solid candles up) results in...
Thanks for responding, FP. I was just not up to answering...was trying to work up to it.
  • #417
  • Oct 25, 2011 5:28pm Oct 25, 2011 5:28pm
These have been the hardest last 2 trading days I can remember in a very long time.
  • #418
  • Oct 25, 2011 5:37pm Oct 25, 2011 5:37pm
Quoting lawgirl21
These have been the hardest last 2 trading days I can remember in a very long time.
I agree I'm still long the E/U and eur/chf been in it for 2 days
  • #419
  • Oct 25, 2011 5:38pm Oct 25, 2011 5:38pm
Chart
Attached Image
  • #420
  • Oct 25, 2011 5:40pm Oct 25, 2011 5:40pm
Quoting lawgirl21
These have been the hardest last 2 trading days I can remember in a very long time.
Amen to that Lawgirl. I use a slightly different system but am following yours with interest and will try it soon but this market is something else. Great thread

Roger
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