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 !!!

No comments: