I have been using this system for several months and have gotten good results with it. The indicators I use are 21 & 55 & 200 EMAs, Stochastic Oscillator (slow Stochastics if the platform doesn't have the Oscillator), and Daily Pivots.
Just so everyone knows, this is for short term trading. This works best for London and New York markets on the G/U or any trending pairs. I'll post my charts and results so everyone can see.
I use the following charts: daily, to check positions of the emas mentioned and to set up pivot points 4hr, I set up my trendlines on this chart so I don't get my main chart messy. Once I set a trendline it stays for future refference. I also check the positions of the emas on this chart also. 15min., I trade from this chart and put fibs here.
My trading plan is simple:
1) I check daily and 4hr for trendline positions and note where each ema is positioned compared to current price level.
2) I then check the 15 min. chart for pivot point levels, and where each ema is.
3) trade only in the direction of the 21 & 55
4) the entries could be a little tricky so look at my charts and you'l get the idea. Exact entries are upto the individual.
Money Management: no more than 2% of account per trade or the opposite side of the 55 which ever is less until you get a feel for it.
If anyone has questions please feel free to ask. I'll be more than happy to answer them.
Last edited by techtrader10; 04-29-2008 at 11:05 AM.
The Following User Says Thank You to techtrader10 For This Useful Post:
The first chart was taken after 11:00 est (0400gmt). I usually wait for the 21(red) to cross the 55(blue) for confirmation of trend change. Here I was looking to go short once it crossed and then ride the 21 down. Since the Central Pivot is so close I waited for a candle to close below and got in on the open of the next candle. My stop was set at 1.9910, above the 55. My target was 1.9806 (s1). I noted that the m2 (1.9846) was the same as the 200 ema on the 4hr chart so I figured some heavy stalling would occur at this point.
The second chart shows my entry point and my exit point, 2 pips above my target. I collected 74 pips on this trade. This was a nice trade since there was really no retracements. Since I made my money for the day I called it quits.
The entries are clear. Using of higher time frames makes this system more reliable. Please put your trades here for a while. I am going to try this and would compare my trades with yours.
Thanks for sharing.
I agree it works better on higher timeframes but the SL is much longer. If your MM can handle it then thats fine but I strongly suggest follow MM first. I'll post all my trades (even the ones I screw up). The only way to see a system in action is to see the good, bad, and down right ugly. Good luck to ya.
Here is my chart from 11:45est (0445GMT). So far the 21 and 55 are about 26 pips apart and flat. Here there is no real direction and the market has stalled for the most part until London opens. If there is a break to the upside of the m3 p.p. then I'll be going Long but if there is break to the downside below the teal 200ema (near c.p.) then I will go short.
Keep in mind the Manufacturing PMI out of London is @ 4:30est (0830gmt), so I'll be out by 3:30-3:45. Then I'll get back in when the market settles on a direction.
ok here is the eur/jpy chart at 1:35est. this looks like it is a continuation to the downside after a pullback to the 55. I'm looking for another pullback to the 21 for a short. let's see what happens.
Last edited by techtrader10; 05-01-2008 at 07:48 AM.
I'm sure some have heard this before but I'll say it again for those who haven't, set a goal for how much you want to make for the week. Don't try to set goals daily because the market may not work out for you. Somedays you get more than others or you may have things to do and you won't get your goal, so keep it realistic. With that said, my goal is 150-200 pips a week (if you have a mini that's $150-$200 a week, standard is $1500-2000). I have a mini account but I deal multiple lot sizes. So 150-200 pips works for me plus it gives me extra time to do what I want. If you hit your goal early then take the rest of the week off, don't trap yourself into giving it back by overtrading.
Now todays trade was volatile since the news from the Fed yesterday and Manufacturing PMI out of the UK. so I stayed out of the Gbp/Usd and decided to go with the Eur/Jpy. As you can see I took a short @ 162.01 and took profit at 161.47 for a total of 54 pips.
If you miss the entry at the beginning then wait for a retrace back toward the 21, take a short either at the 21 or the more conservative move would be wait for the close of the first red candle and then go short.
Chart 9 shows that in taking continuation trends you must be careful. This is why I only take 21/55 crosses. Otherwise a reversal could catch you by surprise. I hope this was helpful to you all.
Here is a good example of going in on a reload. If you miss the initial entry point just after the cross then wait for the retrace back to the 21 and enter on the candle after the close below the 21. Here it's the candle before the large bear candle (first check). In this case the entry is about 161.56 and the exit would be about 160.60 for 96 pips.
This I would have to call a gift from above. I usually stay out of any trades from about an hour before a news announcement until things settle down and a direction is confirmed. In this instance the news was bad for the gbp, the Halifax report was forecast to be -0.6% but came in at -1.3%. The out come should have been a drop in Gbp/Usd but the bears were wondering why it had gone up. Fortunately the cross was going in that direction so I took the trade. I went long @ 1.9813 which was a comfortable entry for me. I set my stop below the 55 @ 1.9770. I set my target @ r1 but price action was strong on the upside so I held on for a bit. I took profit @ 1.9872 for 59 pips. At this stage the market usually slows to wait for New York to open. Since the NFP is coming out at 8:30est New York will wait to see what the release will be. Now I'll wait until after the report to see if I get back in.
Hope this helps.
Last edited by techtrader10; 05-03-2008 at 11:37 PM.
A simple ema system I use...
Linear Mode
