Ema 10/40 cross system
What do you mean by "candles are on the south side of the cross"? Does it mean that the High of the candle is lower than the EMA(10) or just that the close of the candle is lower than EMA(10)? Also, there should be some kind of disaster stop because if you wait for the EMAs to cross and the candle close lower, it maybe too later and 100s of pips maybe lost.
Maji
Hi,
Looking at the video, he appears to be using the idea that the complete candle (inc high and low) should not be touching the ema 10. It looks like he includes this to prevent false triggers. I completely agree about the disaster stop, but I thought I'd present the system the way it is in the video. In one of my manual backtests both lots took a -100 pip hit each, whereas a disaster stop would have limited the damage.
Email me at tradermaji at cox dot net and we can converse there.
Maji
will do mate
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Hi,
This is not my system I found it on the internet. I thought I'd share it with you. It's similar to the other ema cross sytems on this forum. I'm a complete beginner and I have been experimenting with different indicators.
Indicators 10 ema , and 40 ema. Time frame 30 min chart and 4 hour chart as a filter.
BUY
If 10 ema crosses over 40 ema AND next full candle is above the cross point and is a bullish candle and is not touching the emas.
buy 2 lots- 1st lot take profit at 40 pips. 2nd lot let it ride till ema 10/40 cross again , and candles are on the south side of the cross.
Stop each lot if ema 10 crosses ema 40 and candles are on the south side of the cross.
SELL
If 10 ema crosses over 40 ema AND next full candle is below the cross point and is a bearish candle and is not touching the emas.
buy 2 lots- 1st lot take profit at 40 pips. 2nd lot let it ride till ema 10/40 cross again , and candles are on the north side of the cross.
Stop each lot if ema 10 crosses ema 40 and candles are on the north side of the cross.
The 4 hour chart can be used as a filter for this sytem. i.e only buy if the market is above the emas on the 4 hour chart. Only sell if the market is below the emas.
Here's a link to the video:
http://www.forextips.com/jared20051012.htm
I have done a very small amount of manual backtesting, and it seems to work ok.