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Simple 5 / 8 moving average crossover

  • #1,041
  • Jul 23, 2013 3:28am Jul 23, 2013 3:28am
Quoting Krypty
{quote} Steve Can you maybe please elaborate on your quote for setting your Stop Loss above or below the setup candle. If I look at your first posted chart with the 2 trades, on the first trade after you have entered you do get a lower candle. Would this not have taken out a SL? I am trading a similar 5/8 EMA system but would like to get the SL placement more optimized as I think mine is very wide (100-300pips on a 4H/Daily timeframe) and RR could be suffering because of this.
I have found that on Higher TF especially the daily, SL at the OPEN of the signal candle works good. It gets taken out at times but I am usually trailing my stops behind closed candles or SR levels. Hitting 1:1 using this method works and when you catch a trend..the RR could be great. Then again if your signal candle is too large, you may decide to not take it of put a pending order for a retrace.
There is no guaranteed solution to this. Just use the methid that makes the most sense to your risks appetite.
  • #1,042
  • Jul 23, 2013 4:24am Jul 23, 2013 4:24am
Quoting 45drive45
{quote} I have found that on Higher TF especially the daily, SL at the OPEN of the signal candle works good. It gets taken out at times but I am usually trailing my stops behind closed candles or SR levels. Hitting 1:1 using this method works and when you catch a trend..the RR could be great. Then again if your signal candle is too large, you may decide to not take it of put a pending order for a retrace. There is no guaranteed solution to this. Just use the methid that makes the most sense to your risks appetite.
Thank you 45drive45 for your explanation, appreciated.
  • #1,043
  • Jul 23, 2013 1:48pm Jul 23, 2013 1:48pm
Quoting Krypty
{quote} Steve Can you maybe please elaborate on your quote for setting your Stop Loss above or below the setup candle. If I look at your first posted chart with the 2 trades, on the first trade after you have entered you do get a lower candle. Would this not have taken out a SL? I am trading a similar 5/8 EMA system but would like to get the SL placement more optimized as I think mine is very wide (100-300pips on a 4H/Daily timeframe) and RR could be suffering because of this.
Hi Krypty,

As I was trading inside bars I was looking at the Mother Bar as the setup bar so set my SL above/below this bar. I would not use any more than a 100 pip SL on the H4 TF and then only if the R:R would allow for such a large SL.

I like to have the Daily TF in agreement with the H4 also before taking a trade.

I am using Freebie Candles for my trading because they allow me to read PA but also give the same signals as Heiken Ashi candles so for me it's the best of both worlds.

I'm also using the HG 0001a indicator which i got from here Post# 81, it relates to the SuperTrend and BB MACD Indicators which I was using on anther thread to try and create a mechanical trading system. It works much better, for me, when I use it in conjunction with the 13 and 21 EMAs and I wait for a pull back in the trend rather than jumping straight into a trade.
Attached Image (click to enlarge)
Click to Enlarge Name: 23rd July 13 EUR:USD H4 Chart 2.png Size: 131 KB
  • #1,044
  • Jul 24, 2013 1:17am Jul 24, 2013 1:17am
Entered a long trade on EUR/JPY H4

I always enter a trade with a pending order +6 pips above the high of the setup bar for longs and -4 pips below the low of the setup bar for shorts.
Attached Image (click to enlarge)
Click to Enlarge Name: 24th July 13 EUR:JPY H4 Chart.png Size: 119 KB
  • #1,045
  • Jul 24, 2013 11:06am Jul 24, 2013 11:06am
Quoting stevepatt
Entered a long trade on EUR/JPY H4 I always enter a trade with a pending order +6 pips above the high of the setup bar for longs and -4 pips below the low of the setup bar for shorts. {image}
TP hit
Attached Image (click to enlarge)
Click to Enlarge Name: 24th July 13 EUR:JPY H4 Chart 2.png Size: 120 KB
  • #1,046
  • Jul 25, 2013 1:10am Jul 25, 2013 1:10am
Entered long on EUR/USD H4
Attached Image (click to enlarge)
Click to Enlarge Name: 25th July 13 EUR:USD H4 Chart.png Size: 147 KB
  • #1,047
  • Jul 25, 2013 2:44am Jul 25, 2013 2:44am
Steve, thank you very much for taking the time to explain in detail what you did with those exceptional screenshots.

It is really appreciated.
  • #1,048
  • Jul 26, 2013 12:54pm Jul 26, 2013 12:54pm
Quoting stevepatt
Entered long on EUR/USD H4 {image}


TP 68 pips SL 50 pips.

Market doesn't want to break 1.33 big number as this trade is already over 1:1 R:R and I don't want to hold it over the weekend I have exited for 68 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: 26th July 13 EUR:USD H4 Chart.png Size: 164 KB
  • #1,049
  • Jul 27, 2013 12:14pm Jul 27, 2013 12:14pm
looking for a multi time frame ema cross indicator , can somebody help ??
  • #1,050
  • Jul 28, 2013 3:29am Jul 28, 2013 3:29am
Quoting unimak
looking for a multi time frame ema cross indicator , can somebody help ??

Try using the Google Powered search facility at the top of the page to find what you want within FF.

Took me a couple of minutes yo find this Post# 6
  • #1,051
  • Jul 30, 2013 10:45am Jul 30, 2013 10:45am
Gone short on EUR/JPY H4 the chart explains my reasoning.
Attached Image (click to enlarge)
Click to Enlarge Name: 30th July 13 EUR:JPY H4 Chart.png Size: 160 KB
  • #1,052
  • Jul 30, 2013 11:39am Jul 30, 2013 11:39am
Quoting stevepatt
Gone short on EUR/JPY H4 the chart explains my reasoning. {image}
Nice Steve, I am also in this trade but with a StopLoss of about 200 but must also say I will ride it until the cross of the 5/8 on the daily or ATR based stop on the 4H.
  • #1,053
  • Jul 30, 2013 11:51am Jul 30, 2013 11:51am
Quoting Krypty
{quote} Nice Steve, I am also in this trade but with a StopLoss of about 200 but must also say I will ride it until the cross of the 5/8 on the daily or ATR based stop on the 4H.

Hi Krypty,

Personally I'd look for the cross on the daily and then watch the H4 for the first pull back to the MAs to try and reduce my SL.

Could you post a chart showing your entry please.
  • #1,054
  • Jul 30, 2013 12:24pm Jul 30, 2013 12:24pm
The GBP/USD D1 and H4 charts shows my thought process when looking for trade setups.

I work full time and so this is the best way for me to trade I use an EA for trade management and once I enter a trade I usually let it do it's thing. I move to BE +3 pips once my profit is equal to my SL and then let it either run to my TP or take me out for +3 pips.

I usually find it's better for me NOT to be around to interfere with the trade because once you start to do that then it's something you have to factor into your trading plan. If you start to interfere with a trade, once you have placed it, you need to keep detailed records of how this interference plays out in the long term if you don't how do you know if your helping your trading or hindering it? I know personally I'm better off just letting it run but you have to have your SL TP and where or when you are going to move to BE.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 30th July 13 GBP:USD D1 Chart.png Size: 115 KB
Click to Enlarge Name: 30th July 13 GBP:USD H4 Chart.png Size: 138 KB
  • #1,055
  • Jul 31, 2013 8:35am Jul 31, 2013 8:35am
Steve here is the screenshot where I entered.

My thinking behind this trade is the following:
- Cross on the Daily (5/8 cross on my side)
- Entered on 4hour chart after pullback and then entered at the red arrow.
- SL is based on Daily ATR calculation
- TP = I do not have a TP and will only exit when I get break of the ATR.
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPY 30Jul.JPG Size: 158 KB
  • #1,056
  • Jul 31, 2013 11:45am Jul 31, 2013 11:45am
Quoting Krypty
Steve here is the screenshot where I entered. My thinking behind this trade is the following: - Cross on the Daily (5/8 cross on my side) - Entered on 4hour chart after pullback and then entered at the red arrow. - SL is based on Daily ATR calculation - TP = I do not have a TP and will only exit when I get break of the ATR. {image}

Hi Krypty,

Thanks for taking the time to post a chart, looks like you entered short just before me.

I thought you where entering immediately after the cross of the 5 and 8 EMAs. It's always better to wait for the pull back and then enter in the direction of the trend when you have the PA for confirmation. Entering a trade based solely on the cross of an EMA is not a good idea; it's great if the market continues but more often not you will get a pull back.

Good luck with the trade, I've been stopped out on mine for (-1%) of my account.
Attached Image (click to enlarge)
Click to Enlarge Name: 31st July 13 EUR:JPY H4 Chart.png Size: 136 KB
  • #1,057
  • Aug 4, 2013 4:09pm Aug 4, 2013 4:09pm
Entered a Buy Stop on EUR/JPY H4
Attached Image (click to enlarge)
Click to Enlarge Name: 4th August 13 EUR:JPY H4 Chart.png Size: 118 KB
  • #1,058
  • Aug 5, 2013 12:10am Aug 5, 2013 12:10am
Quoting stevepatt
Entered a Buy Stop on EUR/JPY H4 {image}
I have cancelled this trade, that is the advantage of using pending orders.
  • #1,059
  • Aug 5, 2013 1:53am Aug 5, 2013 1:53am
Quoting stevepatt
{quote} I have cancelled this trade, that is the advantage of using pending orders.
Actually pending order is a very good way to avoid loss and whipsaws in most systems even more so in MA based systems
I think the problem for some is that they see all the missed trades or later entries in strong trends and decide not to use them. But when there is cross upon crosses, pendings usually helps you avoid those trades.
  • #1,060
  • Aug 7, 2013 2:18pm Aug 7, 2013 2:18pm
Missed a couple of setups on USD/JPY EUR/JPY
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 7th August 13 USD:JPY H4 Chart.png Size: 114 KB
Click to Enlarge Name: 7th August 13 EUR:JPY H4 Chart.png Size: 117 KB
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