Greetings, I'm working through finding a trading strategy that works for me. Currently I'm looking at a method popularized by R.C. Allen involving 4, 9, and 18 day EMAs.
When the 4 and 8 EMA are both crossed the 18, you enter long if above 18, short if below 18.
When the 4 crosses back across the 9, exit. Which ends up giving you a neutral zone.
10m charts, estimate of my week's activity.
http://img202.imageshack.us/img202/9692/10mv.jpg
I'm not sure how well it would do on 5 minute charts
http://img607.imageshack.us/img607/664/71641397.jpg
I filled the lines in after I made the trades, the slopes of the lines are not to scale.
I would greatly appreciate someone ripping this strategy apart and helping me understand weakness and figuring out complementary strategies to implement alongside it.
When the 4 and 8 EMA are both crossed the 18, you enter long if above 18, short if below 18.
When the 4 crosses back across the 9, exit. Which ends up giving you a neutral zone.
10m charts, estimate of my week's activity.
http://img202.imageshack.us/img202/9692/10mv.jpg
I'm not sure how well it would do on 5 minute charts
http://img607.imageshack.us/img607/664/71641397.jpg
I filled the lines in after I made the trades, the slopes of the lines are not to scale.
I would greatly appreciate someone ripping this strategy apart and helping me understand weakness and figuring out complementary strategies to implement alongside it.
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