for those of us who've fallen behind on this thread is there somebody willing to summarise the current state of play with this method?
the thread is nearly 1500 posts long and is too big to follow for us lazy gits...i read earlier on that v2.0 is next for release?
much appreciated...thanks in advance.
Hollis is essentially correct.
Original Sidus used 5,8 WMAs and 18/28 EMAs, preferably on the 1H but could be used on 30M chart (see first post, attached PDF). Over time, this evolved into 5,12,18,28 EMAs with RSI(21) as confirmation when greater (long) or less (short) than 50. Renasdad summarized the evolved Sidus in his journal (see below):
The Following is from renasdad at ForexFactory.com<o
<tt>Here is a run down of the sidus system. I like to call it "3Phase". It has three phases to it. </tt>></o
<tt>When talking about this, I will talk all in buying. For selling, just switch it around. </tt>
<tt>Phase 1 </tt>
<tt>On a [..] chart, you need a 5 EMA and 12 EMA. Also, RSI(21 period) with a level 50 line. </tt>
<tt></tt>
<tt>What to look for on phase 1 </tt>
<tt>5 EMA will cross 12 EMA from below to above. RSI needs to go above 50. Wait for a candle close before taking a trade. This guarantees it wasn't a fake signal. </tt>
<tt>so, for phase 1 5 crosses the 12 going up. RSI crosses 50 going up. </tt>
<tt></tt><tt>Phase 2
[..]
5 EMA crosses 12 EMA Which will then cross the 18/28 EMA. If the 5 and 12 EMA cross the 18/28 EMAs that is confirmation of trend. </tt>
<tt>Phase 3 </tt>
<tt>This phase is for taking profits. This differs with people. It depends on how they like to trade. For me, I like Vegas 1 hr tunnel. Some use support/resistance, some use Fib levels. </tt>
There was additional evolution after this point but as I read the thread the additional tweaks only confused many. Using either Original Sidus or Evolved Sidus will work. Hope that clears things up.
My original system was with 5 & 8 WMA's. In version 2 it will be 5 and 12 WMA.
Not ema's. Wma's ar more weighted, so more accurate.
I'd recommend also looking at the PDF from the very first post.
Sidus says:
I don't want to jump the gun, but I think it went a bit like this...
Sidus used to use 5 and 8 WMA and now version 2 will use 5 and 12 WMA instead. No idea whether on close or median or what, but I assume on close. And he didn't enter when the 5 crossed the 8 or now the 12, but when that happened and THEN both crossed the 18/28 combo, when the 18/28 pair was squeezed together tight, as this makes the best trades.
(basically this just represents that the market has stopped whatever it was doing and is now trying to decide on a new direction and the crossing of the fast WMAs past the slower EMAs tries to interpret this as a decision to "go somewhere" and tries to ride the momentum. this is the reason for me advocating small stops...)
As opposed to bagovino, Sidus waits for the WMAs to actually move past the 18/28 pair first, whereas correct RSI (<>50) and the fast EMA cross of 5 and 12 alone is enough for bagovino . Correct me if I am wrong here.
More safety I think is his(Sidus') reason. It does make you miss pips occasionally, but I assume he saw it also prevent fake signals? Haven't spent that much time looking into it...
Also Sidus uses 5 and 12 WMA, bago believes in EMA...to each his own, to be honest there isn't exactly that much difference, both give fake signals and need some amount of discretion and/or experience or just plain good old money management to allow for these fakes without thinking twice...
IMHO using good MM you can take any and all signals and still end up winning as long as you make at least 1:1 and > 50% of all signals work...adjust r/r and % accordingly and statistics are your friend
The RSI 50 thing is just an attempt to get more reassurance that things are bullish or bearish when the crossings happen..
Oh and one last thing, the reason some trades lately that weren't actually proper signals if you consider RSI worked out was because nippy or EJ for example showed a pin bar and these two systems both get you into a pin bar trade early or at the same time as the pin breaks....funny coincidence ;D But it works
A case where price action and MA cross systems coincide
I hope the confusion is now complete ;D
