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12 ema filter on 1hr question

  • #1
  • First Post: Jul 25, 2006 3:08pm Jul 25, 2006 3:08pm
Ok, I've read through the document for the 1hr method and browsed the messages but I'm still a bit unclear on the precise usage of the 12 ema as it relates to the price.

For example, in the attached image, the 12 ema doesn't cross down through the tunnel until the price has already hit the first take profit level. What would you do here?

Do you only enter and take profit once the 12 ema reaches the various profit levels, regardless of the price? With the higher volatility pairs it would seem like the various pofit points would be hit long before the 12 ema and frequently. Given the vast differences in levels I'm just not sure how to react.

Jason
Attached Image
  • #2
  • Jul 25, 2006 9:11pm Jul 25, 2006 9:11pm
Quoting jlowder
Ok, I've read through the document for the 1hr method and browsed the messages but I'm still a bit unclear on the precise usage of the 12 ema as it relates to the price.

For example, in the attached image, the 12 ema doesn't cross down through the tunnel until the price has already hit the first take profit level. What would you do here?

Do you only enter and take profit once the 12 ema reaches the various profit levels, regardless of the price? With the higher volatility pairs it would seem like the various pofit points would be hit long before the 12 ema and frequently. Given the vast differences in levels I'm just not sure how to react.

Jason
It is not necessary to wait for the 12 ema to reach the fib level before scaling out profits.

regards,

CFII
Attitude + Power = Performance
  • #3
  • Jul 25, 2006 9:55pm Jul 25, 2006 9:55pm
Quoting CFII
It is not necessary to wait for the 12 ema to reach the fib level before scaling out profits.

regards,

CFII
I guess my point was that you didn't receive a sell entry signal until the price was already at the first take profit level.. Given the fact that one TP level has already been passed up, do you wait for an entry signal where the price is more in line (the main entry point mentioned in the document) with the MA, or do you enter the market and push your take profits down to the next level.

Jason
  • #4
  • Aug 9, 2006 8:08pm Aug 9, 2006 8:08pm
i dont think the 12 ema is used at all for entries or exits

the only thing vegas says about the 12ema is that when it coincides with the 144 and 169 ema, the move will be very powerful.
  • #5
  • Aug 10, 2006 1:18am Aug 10, 2006 1:18am
Quoting jlowder
Ok, I've read through the document for the 1hr method and browsed the messages but I'm still a bit unclear on the precise usage of the 12 ema as it relates to the price.

For example, in the attached image, the 12 ema doesn't cross down through the tunnel until the price has already hit the first take profit level. What would you do here?

Do you only enter and take profit once the 12 ema reaches the various profit levels, regardless of the price? With the higher volatility pairs it would seem like the various pofit points would be hit long before the 12 ema and frequently. Given the vast differences in levels I'm just not sure how to react.

Jason
yeah, that is a problem. the filter filters the bad and the good trades alike. I have seen many times that the price touches the tunnel and retraces back for a couple of hours and then attempts to break the tunnel again but this time with the 12 ema accompanying it. however, there are times when the price breaks the tunnel the first time and is not looking back.. it is all a bit discretional and you have to build up your own experience and then decide how to use it.

this is not a fool proof system and while you can make money with it, you can loose as easily.
  • #6
  • Aug 10, 2006 3:10am Aug 10, 2006 3:10am
how does the 12 ema filter trades?
  • #7
  • Aug 10, 2006 3:48am Aug 10, 2006 3:48am
Quoting clam61
how does the 12 ema filter trades?
Moving averages being used as filters? I havent heard such thing.
  • #8
  • Aug 10, 2006 5:41am Aug 10, 2006 5:41am
Quoting clam61
how does the 12 ema filter trades?
Quoting kolachi
Moving averages being used as filters? I havent heard such thing.
you must be kidding me. have you read any of vegas documents? if you wan't to make money in this business you have to start to pay attention or you'll only make your bucket shop broker happy.

quote from vegas 1h method:
The 144 and 169 ema's create what I call the "tunnel". The 12 ema is an extremely valuable filter that you will want to have there all the time. I will talk more about this in the filter section.
..
Put the 12 ema [1 hour] on your screen with the rest of your indicators. When everything is at the same price [tunnel, current market price, 12 ema] sit up and take notice. When the market breaks away from the tunnel, there is a very high probability of a strong market move coming. I don't need Gann, because this gives me time, the square of time, and price all in equilibrium. When it breaks, it goes.
  • #9
  • Aug 10, 2006 6:51am Aug 10, 2006 6:51am
Quoting piccolo
yeah, that is a problem. the filter filters the bad and the good trades alike.
A water filter is not filter if it cant separate good water from bad water.Similarly 12 ema is not a filter if it cant differentiate between good and bad.
No one disagrees with the significance of 12 ema but it does not filter or tell about entry exit, it only indicates prospective big move if condition told by vegas is satisfied.
BTW I use 13 ema bcoz 12 is not fibonacci number.
  • #10
  • Aug 10, 2006 7:47am Aug 10, 2006 7:47am
Quoting kolachi
A water filter is not filter if it cant separate good water from bad water.Similarly 12 ema is not a filter if it cant differentiate between good and bad.
No one disagrees with the significance of 12 ema but it does not filter or tell about entry exit, it only indicates prospective big move if condition told by vegas is satisfied.
BTW I use 13 ema bcoz 12 is not fibonacci number.
maybe you should sell water filters then. now all joking aside: you use a filter to increase your wins versus your losses. no matter if it is a moving average, keltner channels or whatever.

here is piece of advice you should never forget: always use the stuff that work for YOU.

if 13 ema works better than 12 then happy you but if you use 13 because 13 is a fibo and 12 is not then good luck selling water filter because you'll need it.
  • #11
  • Last Post: Aug 10, 2006 10:16am Aug 10, 2006 10:16am
if anyone thinks you only take trades when the 12 ema is near the 144, 169, and price you are wrong.

vegas only says a strong market move will come. he doesnt say in which direction
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