EMA-4-MTF-Strategy

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
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">

---
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.
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EURUSD, M30 - EMA-4-MTF

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.
 

Attachments

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EURUSD, M5; GBPJPY, M1 / EMA-4-MTF-Strategy

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.
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
Stop Loss

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

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
USDCAD, M15, M1 - EMA-4-MTF-Strategy

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.
 

Attachments

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EMA-4-MTF with ADX?

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

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EURUSD, M1 - EMA-4-MTF-Strategy

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.
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
Approximation - ROI

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%.
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EURAUD, M5 - EMA-4-MTF-Strategy

EURAUD, M5, 2009 october 23

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.

Recommendation:
P1 (Enter Long), P2 (Exit), P3 (Enter Short), P4 (Exit), P5 (Enter Long), P6 (Exit) and close trading.
 

Attachments

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EURUSD, M1, M5 - EMA-4-MTF-Strategy

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

EURUSD, M1, M5, 2009 October 22

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.

M1 -Trading Option: P1 (Enter Long), P3 (Out, Enter Short), P5 (Out/ Enter Long), P6 (Out)
(P4/P5: Wait or trade. Between P4 and P5 you could switch on 10 sec. TF and trade a little further on).

M5 - Trading Option:p7 (Enter Long), P8 (Out), P9 (Enter Short), P10 (Out), P11 (Enter Long), P12 (Out), P13 (Enter Short), P14 (Out/Enter Long), P15 (Out)
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
USDCHF, M5 - EMA-4-MTF-Strategy

USDCHF, M5, 2009 october 22.

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.

Attention: M15 and M30 signalize a downward movement!

Tip: Trade M1 and you are on the right side!
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
Multiple Time Frame & Trend

Multiple Time Frame

Trend
Trends can be classified as primary, intermediate and short term.

However, markets exist in several time frames simultaneously. As such, there can be conflicting trends within a particular currency depending on the time frame being considered. It is not out of the ordinary for a currency pair to be in a primary uptrend while being mired in intermediate and short-term downtrends. EMA-4-MTF-Strategy take this approach into account for the best trading outcomes. We tend to see the predominant trend using a higher time frame than what we intend to use to select positions, and we tend to use a lower time frame to actually enter the trade, hence the term “multiple time frame trading”.

General Rule
The selection of what group of time frames to use is unique to each individual trader. Ideally, traders will choose the main time frame they are interested in, and then choose a time frame above and below it to complement the main time frame. As such, they would be using the long-term chart to define the trend, the intermediate-term chart to provide the trading signal and the short-term chart to refine the entry and exit.

Deviation from sample
Typically, beginning or novice traders lock in on a specific time frame, ignoring the more powerful primary trend. Alternately, traders may be trading the primary trend but underestimating the importance of refining their entries in an ideal short-term time frame.

What time frames should you be tracking?
A general rule is that the longer the time frame, the more reliable the signals being given. As you drill down in time frames, the charts become more polluted with false moves and noise. Ideally, traders should use a longer time frame to define the primary trend of whatever they are trading.

Once the underlying trend is defined, traders can use their preferred time frame to define the intermediate trend and a faster time frame to define the short-term trend. Some examples of putting multiple time frames into use would be:

* A scalper could trade off 1min. charts, use 5 min. Or 15 min. to define the primary trend and a 10 sec. chart to define the short-term trend.
* A swing trader, who focuses on daily charts for his or her decisions, could use weekly charts to define the primary trend and 60-minute charts to define the short-term trend.
* A day trader could trade off of 15-minute charts, use 60-minute charts to define the primary trend and a five-minute chart (or even a tick chart) to define the short-term trend.
* A long-term position trader could focus on weekly charts while using monthly charts to define the primary trend and daily charts to refine entries and exits.

The selection of what group of time frames to use is unique to each individual trader. Ideally, traders will choose the main time frame they are interested in, and then choose a time frame above and below it to complement the main time frame. As such, they would be using the long-term chart to define the trend, the intermediate-term chart to provide the trading signal and the short-term chart to refine the entry and exit.
One note of warning, however, is to not get caught up in the noise of a short-term chart and over analyze a trade. Short-term charts are typically used to confirm or dispel a hypothesis from the primary chart.

See further:
http://www.investopedia.com/articles...timeframes.asp
http://www.investopedia.com/articles...-timeframe.asp
http://www.tradersedgeindia.com/multiple_time_frame.htm

Kindest regards
 

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
EMA-4-MTF

Durable solution?

When you prefer sitting in front of the monitor for several hours trading GBPCHF short time frames (like M1, M5, M15, M30) that would require constant monitoring and quick reaction to price moves or you setting up your charts once or twice a day and never turn your monitor on during the rest of the time, EMA9/20 cossover avoid more fake entry and exit signals than the other alternatives M1-EMA9/EMA20 crossover or M5-EMA5/EMA10, and certainly not M1-EMA5/EMA10.

This is pretty much about the comfort you have on your hands while testing EMA9/20-MTF strategy finding out about their performance in different time frames and so it's to be choosen the most accurate and profitable option without any more trading tools and indicators. As a function of TF's EMA9/20 could give the fastest signal about upcoming trading opportunities.
So EMA-4-MTF-Strategy gives traders the sphere of influence - the radius of operation - to get into the trade as early as possible and take maximum advantage of price moves. The key moment here is to fully understand the principles of their work to be able to take maximum advantage of signals those exponential moving average indicators produce.
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
Charts CoffeeDec09 - EMA-4-MTF-Strategy

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

CoffeeDec09, Daily, 2009 oct. 15.
CoffeeDec09, M30, H4, 2009 oct. 15.

Breakout or downwards at resistance ceiling?

I'll trade the 15 min chart until it's coming into sharper relief and waiting on clear breach on daily chart!
 

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Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
CoffeeDec09,M15,H4,2009oct.15 - EMA-4-MTF

CoffeeDec09, M15, H4, 2009 oct. 15.

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)
Preferred: In and Out could be in volatile markets with EMA9/20 intersection.

Offset positions:
The "O?" markers signalized winning pips.

Close your entry positions (long or short) at this point when it's enough for you.
 

Attachments

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
Light Sweet Crude Oil Chart - EMA-4-MTF-Strategy

Light Sweet Crude Oil Chart, M5

Label:
E = Entry (In) (might be SHORT or LONG)
O = Out (Exit)
Preferred: In and Out could be in volatile markets with EMA9/20 intersection.

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

Attachments

Forexcube

Master Trader
Dec 2, 2009
50
1
67
Switzerland
www.forexcube.ch
General Remarks

General Remarks
EMA-4-MTF
Exponential Moving Averagres For Multiple Time Frames

Fast Moving Averages
like EMA, - where more weight is given to the latest data - don't extend in the future, they can only follow market price.
Fast moving average indicators are follow-up indicators which means it doesn't predict future market directions. It reflects the current situation on the market. The advantage is that it's easy to use and gives very good results when market is trending, during price break-outs and price movements. The characteristics of EMA's are in such a way, that it can change its signals any time, that's why you need to watch it all the time.

When market trades sideways with very little fluctuation in prices (doesn't trending) it can give false signals, so it isn't suggested to use it.

What there are to do when markets are trending sideways?
Looking at the EMA's, the slope of the curve, as the inclination disappears,... a flat, next to horizontal EMA pattern starts to arise. Markets in sideway-phases doesn't make any new highs or new lows. You will be able to draw simple channel lines and watch the market trading inside that channel. A break out of the channel will reestablish a trending market mode.

Editing:
EMA 20 gives a current trend direction on 30 min, 1 h, 1 day chart.
EMA 120 suggests a major trend direction on 30 min, 1 h, 1 day chart.

Time frames
If you trade 10 sec TF, than you trade 10 sec. and not 1 min. or a 5 min.-strategy, but you get more a global view (theoretical) by looking at 1 min and 5 min.-charts.

When you trade 5 min, you trade only 5 min and you have your focus on the 5 min.-chart, (e.g. market goes up, bullish momentum - A). Good trading would be completly pointless without looking at 15 min chart and 1 h chart, when the main trend is qualify in reverse direction (e.g. downtrend, bearish momentum - B), ...even though you could trade this polar direction (A, bullish) with a simple 10-sec.-Strategy by the way.

Thats only for making your mind about probabilities - it's depend on your preferences which one do you like to trade.

MTF
Multiple time frame strategy means the following.
Sample: You could trade EURUSD 10 sec. up, EURUSD 5 min. down, EURUSD 1h up, EURUSD 3 h up, EURUSD 1 day down, EURUSD 1 week down simultaneously with the same currency, when EMA-4-MTF-Strategy pointed out all these signals on all these different timeframes.

You're wellcome.
 
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