EMA Stoch, MACD
Indicators used in this system are EMA10, EMA 35, Stoch (9,3,3) and MACD (12,26,9).
You can use it on any Major as it is tested on Majors only.
Timeframes = 4hr, Daily
First identify trend by looking at EMAs. If EMA 10 is below EMA 35 then it is a downtrend and if EMA 10 is above EMA 35 then it is an uptrend.
When to enter-> In Downtrend. if Stoch is below 20 and signal line of MACD is below 0 and above(inside) histogram then wait till signal line comes below (out of) histogram. When that happens, it indicates price reversal so buy the pair.
Target profit -> If you r a fan of SL then use trailing SL but to maximize profit, wait for the next reversal and exit trade. You can also enter in another trade at the same time.
These are the techniques I use when trading in forex. help me a lot to analyze market trends.
![[grin]](/themes/default/images/smiles/grin.png)
Thx for sharing this system.
What is the average TP for this system if we use daily timeframe and what will be the average trade duration in that case?
The good or ill of a man lies within his own will. – Epictetus
Looks to be a simple yet effective system. Setup is also very simple and even newbies can easily implement it.
One thing that we should keep in mind is that no system produces profitable results in the start. You will get to know about it with the passage of time and experience.
Stick to your rules
So we r actually looking at if something is turning from overbought to oversold or oversold to overbought zone and place trade when trend is about to reverse. It is really hard to figure out exact reversal point so I think we should wait a little to check if trend has really reversed or it was just a fake signal.
I dun think any indicator would give us exact reversal but a second check is always good to minimize risk.
I have been a big fan of MACD and still use it.
I like systems which analyze charts on higher timeframes as it increases chances of success by removing short term noise from the chart.
This system also analyse chart on higher timeframes and thus added to my list of good strategies. Thx for sharing it.
Originally posted by ChampI like systems which analyze charts on higher timeframes as it increases chances of success by removing short term noise from the chart.
This system also analyse chart on higher timeframes and thus added to my list of good strategies. Thx for sharing it.
In my opinion technical analysis should work on both short and long timeframes. In fundamental analysis, it is different. Trader using fundamental analysis prefer to trade on longer timeframes but technical analysts can scalp, day trade or watever feels convenient.
Yes Sasha. You r correct. Technical analysis has the ability to work on all timeframes but it is really hard to be a good forex technical analyst as it requires more skills than fundamental analysts. There r many indicators and you have to choose based on experience which is why it takes more than a couple of years to master a few of them.
Stick to your rules
There r different views on it. A specific technical analysis performed on one timeframe may not work on other timeframes.
The good or ill of a man lies within his own will. – Epictetus
shiree i think this shuld solve the purpose
wil chk this and come back
thanks for the pain