How to use the 9/20 EMA setup effectively

Another setup.....Blue line entry.....

wow...nice trades...although I personally would not take the second set up as the pullback was really strong. Unless of course the move is accompanied by good sentiment or news.

Hey apocolypto dont meant to bother you but what time frame are you mainly trading this system and what hours are you looking at he chart? these setups can come at any time of the day correct?

Thanks for sharing aiyahmarklah
Nice pips
I'm using similar system :"Squeeze trend trade"
Ema 20 & 9 are really profitable, keep on collecting pips.
Good Luck

saw this method months ago, but forgot about it. just put the 2 emas on my chart and its amazing how well it works, gives great entries to get into a trending mkt that otherwise would have felt like u missed the move and are unsure how to jump on board. i guess its true, trading is simple, but its not easy.

hi, guys!
i see that you have used this strategy with success. i've been usin it myself for a couple of days and i'm struggeling a bit with the exits. i've been pretty much guessing. could you guys tell me what exit strategies you're using?

Hi Aiyahmarklah,

Thanks for your thread. I really like this method and I will add it to my portfolio.
I just have one question: You said that entry, for example short would be when a long bar closes between 9 and 20 EMA and the entry is below that bar. What about the wick going above 20EMA and then coming back between 9/20? Would you consider it as a valid signal?

Kilopip

mihnea11, I use the average daily range as guide for exits, meaning how much it can probably go. Its a guess at best but the most useful guess in my experience. Trade management must apply.

kilopip, all i can say is depends. Time frame you are trading ? Time of the day ? the news and sentiment of the day ? the momentum ? what does longer time says ? all these plays a part.

Come to think of it, I believe I have made a mistake in this thread, it is also reflective of my own misconception of trading this setup. The mistake ? Is that I try to be to systematic or rigid in my approach. I have matured of course in time. just thinking, should I start a new discussion thread on using this wonderful setup ? Things didn't change much but have change somewhat. duh, what I am trying to say is that this old school method rocks, however I may have missed some other important finer points of trading. hmm....

Hey what time frame is the setup used on?

thanks a lot for sharing. I trying to use something similar with emas 10and 21, and sma50 for trending mkt. I just think you should keep on going this thread, it s great and you can update for improve this one, anything you dicide its ok. thank you.

Hi Aiyahmarklah,

Thank you for your response.
I hope you will decide to continue/start new thread about this rocking setup.


Just recently I have switched to lower time frames since I have more time on my hands, mainly 5m which you recommended for 920.

PA on lower TF works differently that on daily charts, which I did before.
I think 920 setup seems to be good place to start.

I am looking forward to hear more expertises from you.

Happy trading,
Kilopip

For me , daily and 4 hour charts. 1 hour and 5 mins are sometimes used. Usually the info on the daily and 4hr charts are enough. I trade off 5 mins charts though.

Hello, there is no improved version, everything is just still old school trading style. What I was referring to was my poor and rigid trading mentality. How do I discuss my thoughts I don't really know how. I am thinking about maybe a new journal or systems thread.

Like the title of the thread, how to use it effectively. The idea is sound, but the approach I used was flawed. The mentality was flawed. My apologies guys. I will start a new discussion soon.

Hey what do you mean, are you losing money with the startegy?

Would you mind shedding a little bit more light on this?
Why do you think it was flawed?

I will be going live on this set up from next week so I shall let you know all how I am doing.

kilopip

anyone still using this method?

It's my primary approach... WTI and GLD I don't really trade FX anymore (only off the daily) Find mixed with PA/SR works very well on OIL and GLD attached is a trade example where you buy/sell a counter bar with trend they work a lot of the time.

just taking signals off the MAs will not give you consistent results you need to take the price into the picture... not sell at a set bottom ect ect.

Another example... was my last trade last night, last of the week.

so what we had was a down trend... but it changed in two ways... one... the selling failed to make a new low.. higher low formed with the MAs becoming sideways... so once the MAs crossed a second time i was thinking a rally to the range high was on... refer to the yellow box on that spinner i took a long at the close with a TP at the high of the range... Green box. I am not sure but feel i was lucky with this one... my TP was hit and it came off quickly after that... so one of those.. when you have a range and you decide to take a trade, go for the high of just under... if the bottom had been flat and not a higher low i would have passed on that entry but the HL was the primer for a shot at the high...IMO this one worked but others have failed quicker...

Range entries can be very short... so RR is important before u hit buy or sell

Hey! Have you created a discussion on what was bothering you (your mentality)? If so, could you please link to it here or write about it here. I'm very curious to learn about it as psychology is imperative in trading.

Thank you!

Hello all,
I will say from many years of experience that the 9/20ema method is one to take in as an investment trading system rather than use it to grab a few pips here and there. What I mean by that is to use the higher time frames, daily in my view, as the lower time frames have never gave me a consistent profit. If it works for you keep on going nut I will explain one good advantage by using the daily.
When price is very near a support, bull trend, take note how price pulls back into the 20/9 area. This is where to open a trade but we must mark the previous candles CLOSE price as our entry line. The 9ema will give off more signals than the 20ema but the 20ema remains as the chief providing the close price of the previous candle is used as the entry line. If price does not hit the entry line just move on and wait for another setup.
The candle wicks are a very good indication of where price will move to, on a bull trend we see price going down into the ema zones. We have the previous candle close line marked and we wait to see the candle coming back up over the ema line to trigger the entry.
Candles that leave a tail behind them are those that you should study as there is a reason for these tails.
I will post charts if the response on this is warm enough to continue. Also from my personal point-of-view and experience the daily CLOSE is the most important line on any charts......Everyone is entitled to their own opinion.