Free Confluence trading system
Indicators:- EMA(8), EMA (34), Stochastic (9,3,3), MACD (12, 26, 9)
Time Frame:- 1 day (can be used on 4 hours but 1 day will produce better results with less risk)
Strategy:-
Buy Rules:- If Stoch is giving oversold indication (i.e below 20) then check if MACD red line is within the histogram. If both conditions r met then check if EMA(8) is below EMA(34). When all of the above conditions r met, wait for buy signal. Buy signal will be when Stoch crosses 20 and MACD red line goes outside histogram.
Vice versa for Sell rules
Set S.L according to ur risk level. Usually it is between 3% to 5%.
The good or ill of a man lies within his own will. – Epictetus
Nice sharing. EMAs dont have much role here though. Everything is done by MACD and Stochastic. It can be used for identifying trend but I think MACD and Stoch r also doing this job.
Like most systems, it looks good for trendy, bad for ranging market.
I agree with jogi, EMAs r not playing any major role in it.
A chart best explains a strategy. Without chart, it is hard, for a novice trader, to understand.
Thanks for sharing though. It looks to be a good system.
Stick to your rules
Originally posted by uniquetraderA chart best explains a strategy. Without chart, it is hard, for a novice trader, to understand.
Thanks for sharing though. It looks to be a good system.
I think this system is simple and dont really need a chart. Usually systems with Price action explained need charts.
Originally posted by SashaI think this system is simple and dont really need a chart. Usually systems with Price action explained need charts.
Actually novice traders do not know much about crossings and levels of indicators. It is true that this strategy doesnt need a chart for explanation purpose but a chart adds value to a system. If there is any confusion, it can be clarified by looking at chart.
Stick to your rules
Originally posted by illiterateLike most systems, it looks good for trendy, bad for ranging market. I agree with jogi, EMAs r not playing any major role in it.
There is an EMA crossing which is an important part. Unless EMA cross occurs, you shouldnt execute a trade.
The good or ill of a man lies within his own will. – Epictetus
Originally posted by ironical
Originally posted by illiterateLike most systems, it looks good for trendy, bad for ranging market. I agree with jogi, EMAs r not playing any major role in it.
There is an EMA crossing which is an important part. Unless EMA cross occurs, you shouldnt execute a trade.
Is it possible for u to make an EA using this system because it will make backtesting easier. Backtesting results can then tell if it is worth trying or not. I think free EA making websites will provide all tools to make an EA based on this system.
I have used MACD and bollinger bands a lot but never used stochastic. So it will be very new experience for me.
Thx for sharing.