1 min dow with 10 EMA

[osho67]

This is a very crude observation. And I would like to improve on this and all helpful comments would be much appreciated.

On one minute dow chart with 10 period EMA gives many times buy or sell signals. I have done some paper trading and I have been able to make some points.

There might be something simple and better than this and I would much welcome some suggestions. I am a novice and trying to learn so please be kind and help. Thanks.

 

[ChartMan]

I think 10 ema is too quick- it neds to be qualified by something else. I think JPWone or was it JonnyT that discussd this in a thread a while ago? The "modifier" was the 30 MA as I recall.....

 

[jpwone]

Hi Chartman and Osho67

I trade using 10 period SMA, 30 period EMA and 60 period EMA on a 1 min chart. In the background I run the same setup but on a 3 min chart.

When the 30 EMA is above the 60 EMA the current trend is positive and I look for buys. The cautious buy trigger is when the actual is between the 10 SMA and 30 EMA. The full buy trigger is when the actual is between the 30 EMA and 60 EMA.

I apply the same criteria for shorts but the 60 EMA is above the 30 EMA to distinguish the trade as a short.

I look for conflicting signals on the 3 min chart and if the 1 min and 3 min are not in agreement then I will either stay out or reduce the stake significantly. The best trades are when the 3 min and 1 min agree.

Flat EMAs are the other danger area as the actual could break upwards or downwards. Better to stay out when the EMAs are flat unless you have a very good feeling for which way the break will be.

The problem I had with just using the 10 period SMA on its own was:

i) I had only had a single reference point for the entry point

ii) It was very easy to get whipsawed

iii) It generated a lot of trades with no clear exit and the spread ate most of the potential profit.

Hope this helps

JPWone

 

[oatman]

I love Fib numbers. I use Indexia 21 and 55 crossover on 1min Ftse future. Any Weighted will do. Don't know how it looks on the Dow. Should be OK on any 1min.

 

[mercury7]

fibonnaci

Oatman,

I am aware of fib.numbers and their percentages etc, but could you explain for me and others exactly what Indexia is, where we can find it, what it does, and most important, how it will improve jpwone's strategy?

Many thanks