GUS: I agree with your proposition. Its the BASIS of my method trading the EUR/$ intraday using both candlestick and line charts. May I suggest you look at the following. Add a 3 SMA to your 4MA plus a 50 EMA to your 20. I use the 3&4 for a short term trend change alert. If you check the charts it should be self explanatory. Dont be put off by some of the replies. Good luck & stick with it.
we all "see" different things/draw differing conclusions from our technical viewpoints. There is no right or wrong imo.....simply a scenario developing according to our personal signals at the precise time we're observing the charts! - some calls pan out, others don't......it's what makes a 'market' after all.....
Slow Stoch (39,1,1) across most time frames is another useful 'trend change' indicator - signals are taken once it crosses through 50, I tend to use hrly charts and wait for a full candle to close above/below 50 before entering a trade. Initial stop set at previous swing high/low. Risk:Reward on €/$ averages around 1:2.5
I usually throw a 100EMA onto the chart, just to reference general trend.
ChowClown. Interesting posts. Like you I use the Hourly Charts for signals(after determining the trend on the daily) I was using a slightly faster stoch with your other two configurations but at first glance yours is more reliable.(less whipsaws) THanks
My own experience with it the last several years is that it often does mark a turn - not always of course!
The 1st part of my 'early warning' comes from a simple hand chart of the daily euro and is of course only a warning - sometimes it's a day ahead, sometimes 2-3 days, and of course sometimes it also doesn't work, that is why it takes a 'confirmation' - some here seemed to interpret my original post as a 'call' as though i was forcasting - not my intention. Only sharing a couple technical idea's with eveyone. gus