Monday, April 23, 2012

Moving Average Crossover Strategy

The Setup
(5) EMA - for entry and exit
(10) EMA
RSI (14) - for confirmation

BUY SIGNAL :  When the 5 EMA crosses the 10 EMA from below, you can BUY. Exit when it crosses down. RSI should be above 50 and pointing up.

SELL SIGNAL : When the 5 EMA crosses the 10 EMA from above, you can SELL . Exit when it crosses up. RSI should be below 50 and pointing down.

The Pivot Point - Trading Strategy

The following pivot point trading strategy has been around for a long time. It was originally used by floor traders. This was a nice and easy way for floor traders to have an idea of where the market was going during the course of the day using just a few basic calculations.

The pivot point is defined as the level at which the market direction changes for the day. Using some simple math and the previous day's high, low and closing prices, a series of points are set. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from those prices are collectively known as pivot levels.

Every day, the market you are following has an open, high, low and closing price for the day (some markets, such as the forex market, are open 24 hours, but we generally use midnight GMT (Greenwich Mean Time) as the open and close time). This information basically contains all the data you need to use pivot points.

Friday, April 20, 2012

SIDUS Method

What do you need?

 - 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
 - 18 EMA & 28 EMA (put them in red)
 -  5 WMA (in blue) & 8 WMA (in yellow)

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start of a trend and the end of a trend. -- Long Term

The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of the trends.  -- Short Term
Entry Signals
You should only open a position, when the red tunnel is extremly narrow or crossed !
LONG: 5 WMA & 8 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.

SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.

 
Exit Signals
Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA -- Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA  -- Close position
Always close your position when boundry’s of the red tunnel cross eachother or when they become so narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position and open a new postion in the other way (If you were long, close, open a short postion)
When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!
Basic rule
!!Enter a position were the red tunnel boundry’s cross and exit that position when they cross again!!!
!!! Always use a stoploss - I recommend a 10-15 pip stoploss !!!