MA Crossover System that works for me
I decided to start a new thread on this topic because I couldn't find another thread that suited my approach and I didn't want to cause confusion by posting my strategies on other people's threads. I posted the following yesterday on Phillip Nel's 5 minute intraday system (https://www.forexfactory.com/thread/...ntraday-system) so I mentioned Phillip but then realized he was in the business section so I started again under trading systems.
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I've been a member of FF since 2017, but decided to change my nickname to my real name, so I'm back to newbie status!
I've been looking for the right post to feature my work, and Phillip Nel's work (at least on the first few pages) is as close to mine as possible, so it feels like it's here. But his work is widely respected, so I really don't want to get in the way of that. I hope the content I post adds value. Since Philip is a fellow South African, it feels even more like home! Philip, if you read this, Groat!
I use the 8/21 EMA strategy. There is nothing special about these two numbers. There is no magic. You can use Philip's 10/21 EMA or 10/25 or 6/15 or 12/35, etc. But I'm not suggesting 50/200. A smaller MA number means the MA is never too far away from the price, and there's a reason for this - it provides a visual reference for price action, and you can almost always tell how much price is stretching away from the MA, and whether it's more likely to be correcting (reversion to the mean) or moving away from the mean.
This chart summarizes my strategy. I wait for a new trend to form as defined by an EMA crossover, then wait for a pullback to (or close to) the EMA (which I now find to be similar to Professor Phillip's) and then place a trade. I almost always use a stop loss order so that if a pullback turns into a reversal, there is less chance of the trade being canceled as price continues to go the "wrong" way. Note that I identified a two-bar pullback setup and two inside setups. They all represent a pullback, or at least a pause, or a period of partial consolidation. After the establishment of multi-IB, the price exploded. That's perfect. I've been looking for this setup.
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I've been a member of FF since 2017, but decided to change my nickname to my real name, so I'm back to newbie status!
I've been looking for the right post to feature my work, and Phillip Nel's work (at least on the first few pages) is as close to mine as possible, so it feels like it's here. But his work is widely respected, so I really don't want to get in the way of that. I hope the content I post adds value. Since Philip is a fellow South African, it feels even more like home! Philip, if you read this, Groat!
I use the 8/21 EMA strategy. There is nothing special about these two numbers. There is no magic. You can use Philip's 10/21 EMA or 10/25 or 6/15 or 12/35, etc. But I'm not suggesting 50/200. A smaller MA number means the MA is never too far away from the price, and there's a reason for this - it provides a visual reference for price action, and you can almost always tell how much price is stretching away from the MA, and whether it's more likely to be correcting (reversion to the mean) or moving away from the mean.
This chart summarizes my strategy. I wait for a new trend to form as defined by an EMA crossover, then wait for a pullback to (or close to) the EMA (which I now find to be similar to Professor Phillip's) and then place a trade. I almost always use a stop loss order so that if a pullback turns into a reversal, there is less chance of the trade being canceled as price continues to go the "wrong" way. Note that I identified a two-bar pullback setup and two inside setups. They all represent a pullback, or at least a pause, or a period of partial consolidation. After the establishment of multi-IB, the price exploded. That's perfect. I've been looking for this setup.
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