Multiple time frame 24ema

Hello fellow Traders,

Just wanted a medium to journal my trades for my new method of trading and document my thoughts as I progress along this journey.

I'd want to makee entries of:
Why I took a trade, why I exited, did i trade according to the rules, did I take profit too early, what were my FEELINGS!?
Guess that's what a journal is supposed to be used for.

STRATEGY PREMISE
The Forex market is a 24 hour 5 1/4 days market, and for a H1 chart you will find 24 bars or candlesticks, so that the representative average would be 24 period and since prices are dynamic we use moving averages and I prefer the Exponential Moving Average (EMA)
As a trend follower I have tried several combinations of curve fitting moving averages and I keep meeting up with more questions like "why the 200EMA?"
seriously why use the 200EMA? some say it is a well respected level and a dynamic S&R and pivot level.
No disrespect here but it has stood in the way of making holding decisions sometimes especially when my take profit is placed there and price just blows past it, or price threatens to reverse from there and I bail out to keep my little profit and the winners remain smaller than the losers.

Keeping it simple I decided to escalate the 24EMA to higher time frames and curve fit their values into M15 and M5.
This means the higher time frames would be my set-up charts while M15 and M5 would be my trigger charts.

I get to see multiple 24EMAs on higher time frames and I wait for an overbought or oversold rotation in my oscillator and pull the trigger in the direction of the higher time frame.

To sum it up
1 Establish trend direction from the higher time frames D1, H12, & H4 but preferably H4
2 Pull the trigger with an O/B or O/S rotattion in my Oscillator (Stochastic) in M15 or sometimes M5.

Very simple and easy to follow and master (just add patience)

YOU MAY SKIP TO POST #70 AS THE METHOD EVOLVED
FURTHER CHANGES HERE....

http://www.forexfactory.com/showthread.php?p=7212299#post7212299

NUTS AND BOLTS

Now how do I curve fit the values of H1 24EMA in H4, and H12?

I've found a 24EMA Matrix and it's so amazing and elaborate, which I'd try to outline here-under.


M5
M15
M30
H1
H4
H12
D1
M5
24
8
2




M15
72
24
12
6
1.5


M30
144
48
24
12
3


H1
288
96
48
24
6
2

H4
1152
384
192
96
24
8
2
H12
3456
1152
576
288
72
24
12
D1
6912
2304
1152
576
144
48
24

The table above shows the various curve fitted values of 24EMA, going forward and backwards, and once you understand this you begin to see the 24EMA trend direction from whichever time frame you choose to trade from.

For instance if you place 24EMA on a M5 chart, you can as well place other curve fitted 24EMA values for higher time frames on the M5 chart; so if you want to see the H1 value, that value would be 288EMA and H4 value would be 1152EMA.
Similarly on a M15 chart, the 24EMA curve fitted value for H1 would be 96EMA then H4 would be 384EMA and H12 would be 1152EMA.

Going forward, on a H4 chart, the curve fitted value of M15 would be 1.5EMA (funny cos that won't stick would it?), then the curve fitted value of 24EMA in M30 would be 3EMA. Also 24EMA in H12 would be 72EMA, so we are able to go back and forth with the 24EMA.

For now I have chosen to use the H4 as the set-up chart containing 3EMA, 6EMA, 24EMA and 72EMA I just look at D1 to see what the daily is saying although I could just throw in 144EMA to represent that.

For M15, just H4 and H12 values of 24EMA are needed namely 384EMA & 1152EMA.
For M5 just H4 value of 24EMA is utilized which is 1152.

PARDON

Please pardon Microsoft excel and Google chrome or is it HTML or whatever, they are not so well into each other.

EXAMPLES

MORE

Entries, exits et al tomorrow.
Good night!

ENTRIES

Good morning

I shall start with a practical demonstration.

The rule is establish the H4 24EMA trend direction, find an entry in M15 or M5.

Utilize Stochs cross in O/B or O/S as the case may be to enter a trade: the entry may also be based on divergence if not an O/B or O/S rotation.

TRADES PROGRESS

I almost bailed out at 30 pips profit till I saw that GBP news correlation was moving the Yen pairs up, how long will the ride last?

MISSED OPPORTUNITY

I was afraid of GBP news so stayed out (slippage can magnify losses).

I will keep track of GBP pairs for latter.

BREAK TIME

I was up 70 pips that's about 2:1 reward to risk

Now its hovering around 60 pips. going for lunch set my TP to just about 90 pips that's 3:1 very modest.

RESULTS

My aim with this journal is to achieve emotion free trading, no bailing out of a profitable trade before hitting TP, no second guessing of my signals, no hesitating; taking every valid signal.

I bailed out of the AUDJPY trade cos of my fear of the possible effects of news and how the pairs are interwoven through correlation.

My SL would have been hit, when is it a good time to bail out of a profitable trade, cos most of such just turn around and become monster home runs?

MORE RESULTS

This was a good trade apart from battling within me to bail out at 25 pips, I managed to sum up the courage to ride it out from the D1 view which showed that the ADR was still not met so I set a conservative TP from the ADR and it was met.

Emotions management? Still some way to go but I will get there.

GOOD DAY OR BAD DAY?

Every day is a good day in the Forex market, (if you follow your proven rules and not your emotions or like I used to do -reinvent the wheel)

The outcome of a trade or trades may be negative that does not make that day a bad day, if the rules were followed it only means that the market changed it's mind, this is why we need to keep our losses as low as possible and maximize our wins.

A bad day is the day you throw away your rules, second guess your signals hesitate, move your SL, take out your winning positions too early.

This is what I want to completely eliminate from my trading.

SIMPLE SET-UPS

So simple you would be tempted to trade 20 pairs, but wait till you have the resources to trade like that, over trading has burned holes into this account several times due to inevitable DRAWDOWNS

Here are some of the sweet trades I didn't take apart from the GBPJPY on my 6 pair watch-list.

I have reviewed the spreadsheet and explained it further to make it clearer

Hello Intrepidpips,

Firstly, thanking forexfactory. I have been using this forum since 2 yrs and till date, never posted a comment or a reply to any threads. I feel now I need to write something really good about your strategies. A month back I was fortunate to find your thread "Crosses, Bounces and Curve fitted indicators". Since then my trading style has completely changed. I feel an internal booster in my confidence. The way price reacts at the EMA's is superb; be it 1m. 5m or 15m and so on.

I quote an example of 15m TF, EMA 800, 288 and 32 bollinger really great.

I was refraining to add thanks / comments to your other thread as the last post was since mid March and I was pretty much satisfied with the strategy you provided. Now that I have seen this new fresh thread I am rejuvenated and as a moral support I am writing my praises.
Please keep going.

Now, again you have spelled the problems we face about emotions, no bailing out profitable trade, no second guessing on your signals, no hesitating, take every valid signal. These are really the ONLY issues that I face daily ever since I adapted your system. One way or the other I am closing my positions too early. I wish your attempt to prove the discipline using this journal will give you some edge. I need to be disciplined and keep reading this post once in a while (link below) and I feel it may help us.

http://www.forexfactory.com/showthread.php?t=215432

Please keep going.

Thank YOU.

I was having connection problems, the spreadsheet with corrections is now attached.
There's a bonus on sheet 2 for 10EMA fans.

Thanks!

I felt it was wasted on the public but I'm so glad now that at least 1 person found that thread useful.

This one is just an upgrade utilizing Higher time frames.

Thanks for bringing up CP's thread again I really should refresh a read of that.

Stick around share your Trade screenshots let's help each other.

Cheers!

Curve fitting is the way to go, I tried Renko and Range bars for a while but could not reasonably curve-fit Moving averages since the bars are not time bound.

I checked on 800, 288 and 32 and this is what I think.

800 is not 24 related so away with it, 288 is the value of H3 24EMA in M15 while 32EMA is the vale of M20 24EMA in M15.

So it makes a great combination only you may just include any of or a combination of 384EMA, 576EMA, or 1152EMA.
Matter of fact I just threw in 24BB (SD1) and I'm liking what I see and will back-test it further.

[quote=mpoorna;6896939 Now, again you have spelled the problems we face about emotions, no bailing out profitable trade, no second guessing on your signals, no hesitating, take every valid signal. These are really the ONLY issues that I face daily ever since I adapted your system. One way or the other I am closing my positions too early. I wish your attempt to prove the discipline using this journal will give you some edge.[/quote]Another cardinal sin in trading is exiting a loosing trade too early, time and again i get into a trade, it goes into positive, I'm elated, then it turns, i wait for it to reverse back in my favour but it stalls then continues down.
I reason "I shouldn't allow my SL to be hit" then I close the trade with a small loss only to find the trade reverses and blows right past my TP without giving me a chance for entry, sometimes the set-up to re-enter occurs but the pain blinds and freezes one.

It's not the Market versus you, it's you versus you in the Market.

TRADE PROGRESS

Took 2 trades
First USDCHF from M5 actually a sell, it has not moved in my favour and now I'm looking at the Daily TF and wondering if price will continue to retrace, or continue the drop.

Then EURJPY a buy from M15 and it's undecided, from the D1 Tf there seems a Triple top about to form but, I just will let the market do it's thing and not get in the way.