OK, everybody around here likes to use PA to predict market movement but they use methods that are so dang complicated I feel like I'm looking at a game of pick up sticks when I see their charts. So I have been attempting to build a simple system that could be used on a lower TFs and that anyone could understand. I like to apply the K.I.S.S(Keep It Simple Stupid) method to everything I do so I developed a EMA crossover system that is accurate and simple. Now since I am using a short 5M TF I will be looking for only 10 pips per trade which is about 2.5% profit on each trade using 50:1 leverage. This system will work on any TF except 1m and any currency pair but I have no need to do long term trades so I'm concentrating on short term scalping on 5mTF at the moment.
OK, if you haven't figured out what I'm doing it's really simple just set up 3 EMAs one at 3 one at 6 and one at 9 then the EMA3 is the signal when it crosses to the top of both the EMA6&9 it's a buy signal, when it crosses to the bottom of both it's a sell signal. I plan on using a 20 pip SL in case of technical issues but I'll use the EMA3 cross to close most losing trades and a TP set to 2.5% of my balance to close the profitable trades. All trades are made after the close of the candle where the cross occurred. OANDA is my broker and TP could be set in %of balance, %of price or in pips which is a nice feature.
So what do the experts thing of this idea. (not tested yet but it looks nice on the charts)
Live Testing begins tomorrow, I have a very small account not much risk involved.
OK, if you haven't figured out what I'm doing it's really simple just set up 3 EMAs one at 3 one at 6 and one at 9 then the EMA3 is the signal when it crosses to the top of both the EMA6&9 it's a buy signal, when it crosses to the bottom of both it's a sell signal. I plan on using a 20 pip SL in case of technical issues but I'll use the EMA3 cross to close most losing trades and a TP set to 2.5% of my balance to close the profitable trades. All trades are made after the close of the candle where the cross occurred. OANDA is my broker and TP could be set in %of balance, %of price or in pips which is a nice feature.
So what do the experts thing of this idea. (not tested yet but it looks nice on the charts)
Live Testing begins tomorrow, I have a very small account not much risk involved.