View Single Post
  #2  
Old 27-04-2009, 22:47
bill77 bill77 is offline
Level III Lasers Member
 
Join Date: Feb 2009
Location: australia
Posts: 69
Default

Quote:
Originally Posted by kartarash View Post
Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this simple system.
Currency pairs: ANY
Time frame chart: 1 hour or 15 minute chart.
Indicators: 10 EMA, 25 EMA, 50 EMA.
Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).
Exit rules: option1: exit when 10 EMA crosses 25 EMA again.
option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).
thanks for your efforts kartarash but have two questions.

A) re garding entry, why bother having 25ema when you have to whait for 10 to cross 50. the 25ema seems useless

B) you all so say, only enter when price close past 50ema which will help avoid false signals. i have yet to see 10 ema ahead of price. what i am trying to say is, when 10 ema cross 50 ema the price would be well and truely closed past the 50.

i sincerely apreiciate your generosity and hope you can clarify and show some charts proving me wrong. its just that mabe i am slow in understanding. cheers :)
Reply With Quote