Short term multiple moving average breakout

Hi All,

Introduction:
We basically trade short term moving average breakout. I personally find it very useful to spot a trade, but by no mean this is a complete system, your valuable input is most welcome.

Setup:
5 minutes
EMA 3
EMA 5
EMA 8

Suitable instrument:
HSI, Indexes such as DJ30, SMI...etc

Testing working:
EURJPY 1H
NZDJPY 1H

NOT suitable instrument:
GBPAUD

Steps:
1. Find out "M" or "W" shape on the EMAs
2. draw a line to identify breakout
3. waiting the line to be broken EMA 3 level broken and start consider trade
4. Trade!

Consideration:
when higher time frame like 30 minutes, 1H EMA is touching previous low point, ensure you watch momentum at lower time frame like 5 minutes, it could be rebound time!

Draw a line to identify potential breakout


Breakout! Consider long


EMA 8 break the level we draw a line, which further confirm trend is going up


Push up further! So we have a successful long trade.

Wait wait I'm not sure if I'm getting it well... You're trading with EMA's breakout, well, but... You get rid of the price? I mean, You don't even show it in your charts?

If it is in that way I'm not saying this is good or bad hahaha but it really let me curious, so subscribed

Problem of price is that it tend to give bad influence on your judgement, the pure EMA itself showing price action in a more clear way.

Of course you could always show it on your chart.

Another successful shorting on OMX30

Just closed short order with profit as 1 hour chart EMA is hitting bottom of previous low

will this work on currency pairs?

Please test it and let me know:
1. which pair are you trading
2. which time frame you are using


I tried NZD/USD and seems not working at all. Maybe because momentum disappear so quickly and it's very difficult to get it right.

trying to short DJ30

Looking good

Closing short position as no momentum going down



I think once position opened, you have to watch the momentum carefully, once EMA is broken, the speed of movement should be accelerating, this time instead, moving side way and we should close short position.

I am not going to trade again as the W shape is messed up, it reached first time then bounce back up, then drop back. I think it's going to jump up, but not going to long as risk is high.

as we speak here, price do jump up indeed, let's wait for a while until M or W shape appear again on 5 minutes chart.

Let's try to short gold as it reach a level of what we expected, haven't done it before, test it on gold first time.


Edit: Trend didn't build up, close short position with lost. Don't know what went wrong yet. Perhaps this is why I said this system only suitable for index.

This time let's try GBPJPY at 1hour chart

setting pending order and execute approximately closing to previous EMA low.




Edit: manually long now, let's see if 1H chart would provide more precise trades.

A bad influence on your judgement?! I had to check the date, when I read this sentence: I imagined it must be April 1st. It's exactly like the book reviewer who doesn't actually read the books before he writes his reviews of them "in case they prejudice him".

Shorting HSI now as 1H EMA previous low already broken.

I totally totally disagree with you hahahaha. When I started trading price seems really difficult to me so I began putting and testing a lot of indicators, it was a waste of time for me. Now I'm focused on price, in my opinion the only "real thing" in trading and the effort worths. However this "not showing price system" got me intrigued so here you have a PA lover following your "not price" system P.S: Good work posting several charts and testing everything.

trying long NZDJPY 1hour chart



Edit: cut loss, lack of moment; Go short now



Edit: maybe because double bottom issue? Cut loss on short, seems swing too much, wait for confirmation


Edit: shorting now as it can't break "M" top


Edit: Closed short with profit

trying to long EURJPY as well on 1H chart



Edit: This one looking good, isn't it?



Edit: Closed with profit

Time to long GBPAUD, triple bottom?



Edit: cut with minor loss, seems lacking momentum going up, prepare to short

Shorting now as second EMA already touching the bottom


Edit: cut loss