If you like MAs

[bluetipex]

If you like MAs then I strongly suggest you consider the 34 ema, on any instrument, especially on a 5 min chart.

I don't know why I'm doing this, but I'm posting my system, which I've fine tuned over the last 4-5 years. Probably something to do with the Bacardis I've been imbibing!

This is a chart of the Dax from today, as you can see nothing happens until it gets direction from the US news at 1.15pm. Then the 34ema is slanting down, and shorting touches of the 34 ema work beautifully. I do believe the 34 ema is magical sometimes.

It is the Light Blue line on the price chart. Blue is my favourite colour, so clearly I make it the most important ema!!!!

Looking at todays 5 min No-Globex chart of the YM the 34 ema is a thing of beauty,also.

What a lovely lagging indcator!!! A dynamic, real-time line of support/resisitance.

I have no interest in volume, news or trend lines. Just price, and my lagging indicators.

Just thought I'd post it. Just have a look and see what you think. Take it or leave it!

Blue

 

[pseudo straddle]

Very pretty could you give us a guided tour of all the other stuff on your chart and what its for? Cheers.

 

[bluetipex]

The 2 panels immediately underneath are MACDs, and I watch crosses of the zero line. The third is a visual representation of 8,21 ema crosses. Having it there reminds me not to fight against it, i.e. I don't go Long if its red.

The final panel is the "squeeze" from John Carter of Trade the Markets. I also have a 1min chart alongside the 5 min chart, and take signals from the 1 min in line with the 5 min, thus hopefully minimising "heat".

 

[megamuel]

Hi Blue,

Sounds great is there anything else to it? Its very simple! I just looked at a few 5 min charts with a few 34 ema's and your right, the price does just seem to bounce off it! Are you consistently profitable with this strategy? I'm new to trading and I am still trying to find a strategy that suits me and works consistently for me. I like the idea of this strategy, would you mind if I had a go with it? What do you normally trade? Thanks for posting

Sam.

 

[bluetipex]

There's a lot more to it unfortunately!! I wish it was that simple.

If you're just starting out then you have a few years ahead of you yet I reckon...

If you want to make emas the basis of a strategy then I suggest you find examples when it DOESN'T work, as many as possible, and identify the common conditions when this occurs. The first thing to learn is when NOT to trade, IMHO. Learn to identify the conditions when probability is NOT in your favour..... If you manage to master this then you will save yourself ££££s of losses, it will prevent you from trying to guess.

My sugeestion is ALWAYS to develop your own system. Sure, pick elements from wherever you like, but spend at least 12 months watching how your method works in real-time, as I said, ideally identifying where it FAILS. If you manage to master this then it will leave you proficient at identifying when the probability is in you favour, and then you have a chance for consistent success.

Good luck

Hi Blue,

Sounds great is there anything else to it? Its very simple! I just looked at a few 5 min charts with a few 34 ema's and your right, the price does just seem to bounce off it! Are you consistently profitable with this strategy? I'm new to trading and I am still trying to find a strategy that suits me and works consistently for me. I like the idea of this strategy, would you mind if I had a go with it? What do you normally trade? Thanks for posting

Sam.

 

[megamuel]

So what was with the first post? Was it meant to be funny?

Sam.

 

[N Rothschild]

MA systems are a fools errand. IMO (trust me i blew out an account using MA's)

 

[bluetipex]

There are some people who ONLY use MA crossovers successfully, I seem to recall a few people on T2W that are proponents of this.

There are 100s of methods and systems for trading, as can be found on this board, I was merely pointing out that if you like MAs then it might be worth looking at the 34 ema (on a 5 min chart). That's all.

I developed my own system around this over 4 years, but I don't expect anyone to try and copy it!!

It doesn't always work (no system is 100%). It NEVER works when the 34 ema is horizontal. The steeper the angle (up or down) the better it works. In other words (surprise, surprise) it works best on a trend day, and never works in chop/sideways action.

 

[cryten]

MA systems are a fools errand. IMO (trust me i blew out an account using MA's)

There's so much more then your entry for successful day trading. From the looks of it bluetipex trades the retracements to the 34 ema which is what most indicator losers do not. Instead of adding more and more indicators to try and hit 100% hit rate (not gonna happen) waiting for a retrace can not only lower your stops, improve your r:r but can turn any mediocre system into a solid trading plan. I use an MA channel myself and look for the best trades, I wait for price to come to me and observe price action to stay out of ranging/choppy markets or if I do enter and price starts to range/chop because I waited for a retracement I can usually get out with a small loss or comfortably sit with minimal drawdown and wait to see which way it breaks.

I trade 15 min charts because I can't get the R:R and hit rate needed on anything lower.

anyway my 0.02