EMA-4-MTF-Strategy

[Forexcube]

EMA-4-MTF-Strategy
Manual Trading System
Exponential Moving Average For Multiple Time Frame


Time Frame: 10 sec., 30 sec., 1 min., 5min., 15 min., 30 min., 1h, 3h, 4h, 1 day, 1 week

Currencies: all
Exception of the rule: 10 sec TF - only EUR/USD (with Spread ~1.5)

Indicators: EMA 9, 20, 55, 120, 200

Enter/Exit: EMA9/EMA20 crossover
(Higher risc: when bar crosses EMA 9 and closes at counterpart side)

Hold: when EMA 9 < EMA 20 (bearish) or 9 > 20 (bullish)

Download:
Indicators see p.4, #34 (without EMA 200), <"indicators.zip">

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Demo Account:
Open Day: 2009 Dezember 01 - Account Deposit: 100'000.- $
Closed Trade P/L: 17'532.44 $
Floating P/L: 0.00 $
Equity: 117'532.44 $
Balance: 117'532.44 $
Profit: + 17'532.44 $
update:
further results see under "report":
http://forexcube.ch/EMA-4-MTF.htm

Label:

E = IN (Entry)
O = Out (Exit)

... with some co-occuring entry and exit-points (O/E)

EMA 9 / 20 EMA

9 EMA entry works on any time frame, waiting untill the price bar closes above 9 EMA to enter long or below 9 EMA to go short.
EMA9 crosses EMA20 indicate confirmation that you're trading an infinite deal more with the trend, but it's not necessary, even though you could deal with it. There are no seconds doubts acting now or waiting a bit longer!

55 EMA / 120 EMA / 200 EMA

55 EMA, 120 EMA, 200 EMA indicate more the global trend and gives psychologically speaking orientation, when EMA 9 getting vulnerable to sideways shoppy prices.

EMA's don't extend in the future, they can only follow market price.

EMA-4-MTF Trading Strategy based on fast moving averages are quite easy to follow. It is easy to use and gives very good results exceedingly when the market is trending, during big price break-outs and big price moves. It does not predict the future market directions, but rather reflects current situation on the market. So it can change its signals any time, second – you need to watch it all the time. When market trades sideways (not trending) with little fluctuation in price it can give on higher timeframes false signals, so it is not suggested to use it during such period with TF > 15 min.

EURUSD 10sec., 1min, 5min

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

The "O?" markers are close matched points adequate for making serveral bips.

EURUSD 1 min

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

The "O?" markers are close matched points adequate for making serveral bips.

Practical suggestion:
P1 - P4 - P5 - P6 - P7 (E) - P8 (O/E) - P10 - P12 - P13

EMA-4-MTF Strategy is used for:

(a) trading the same currency with one time frame

(b) trading the same currency with multiple timeframes

(c) trading different currencies with the same time frame.

(d) trading different currencies with multiple time frames.


Rule of speciality
GBP/JPY will have an average daily range around 120 – 170 pips, so you do better setting on 5 min or 15 min chart, instead of a 1 min chart. GBP/JPY have further a broad spread.

GBPJPY M1, M5, H1 2009 oct. 11

Price data can change very much from every day and still conceal if the price is growing or decreasing. You see even a more general picture if you watch the moving price averages on higher time frames.

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

The "O?" could be convert when you think pips are enough at this point.

Entry: preferred when Bars crosses EMA 9 and close on counterpart (or 9/20 crossover).

Exit: could be with EMA9/20 intersection.

[Forexcube]

EURUSD, M30, 2009-November-10

If EMA120 will be broken down, trade with M1/M5 downside.

I would prefere to trade with 10 sec., 30 sec., M1 at this moment, until the trend becomes clearer.

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

Offset positions:
The "O?" markers are in Focus of gained pips for getting out in advance.

[Forexcube]

GBPJPY, M1

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)


Offset positions:
The "O?" markers are in Focus of gained pips for getting out in advance.

Monitor: the EMA9/20-crossovers, please.

EMA120 signifies often a support or a resistance.

[Forexcube]

EMA-4-MTF-Strategy
Exponential Moving Averages For Multiple Time Frames

EURUSD, M5; GBPJPY, M1

GBPJPY is going upwards and EURUSD hung.

Be attentive if GBPJPY will go down now. Look at M1, M5.

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

Offset positions:
The "O?" markers are in Focus of gained pips for getting out in advance.

[Forexcube]

Placing a stop loss?
When s.o. prefere to set a Stop Loss, it might be that stops are normally trailed behind each new bar. The first stop upon entry can be place behind two last bars, but then adjusted if the market moved your way. Setting a stop loss depends from several factors e.g. the current volatility, the trend, the money- and risc-management, the coping style of your trading. Hedging opened positions becomes a marked preference, e.g. if higher timeframes gives contrary signals when trades don't move in your favor.

[Forexcube]

USDCAD, M15

In sideways channels it's better trade with Timeframes < M5.

By contrast trading with M1 no one needs to wait for a "go"signal from lower TF charts.

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

Offset positions:
The "O?" markers are in Focus of gained pips for getting out in advance.

Entry and Exit points at EMA9/20 intersections.

[Forexcube]

EURUSD, M5

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

EMA9/20 crossover: E - O/E - O

Offset positions:
The "O?" markers signalize winning pips for getting out in advance.

Advice:
P1, P2, P9

Tip: P6-P9 could be traded with 10 sec.

[Forexcube]

Note
What you could observe is also that when ADX is high, thus a strong trend, EMA9 and also EMA 20 is holding stronger making crossover tough and when you see low readings of ADX (such as below 20) you could expecting in all likelyhood crossover. So when ADX is rising and especially when it is high and above 40, EMA 20 will act as a strong support/resistance.

So on, when ADX reaches 40 and above, it warns traders that the trend is completely evolved and it is time to arrange for exits and already protect by adopting trailing stops.

Best regards.

[Forexcube]

EURUSD, M1

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)

Preferred:
In and Out with EMA9/20 intersection.

Offset positions:
The "O?" markers signalize winning pips for getting out in advance.

Agreeable proposal:
P1 Enter (Long), P2 Exit & Enter (Short), P3 Exit, P4 Enter (Long), P6 Exit, P7 Enter (Long).

It might be better trade the 30 sec. dead on time.

[Forexcube]

Return on Investment (ROI)

5 x 0.2% = 1%

When you trade just now e.g,. EURUSD,... traders could make Enters and Exits.

When you set your Exits at 6.-$ Profit, so you earn with a 3'000.- $ Account 0.2% with every single one of them.

To keep repeating this the fifth time you carry out a ROI at 1%.