21 EMA

hum88 · **Joined:** Sun Nov 15, 2009 6:09 am **Posts:** 27

Thank you Bill. It is very helpful.

In addition, you also take into consideration that the position (short/long) is to be in accord with the trend in bigger time frame.

chillydog · **Posted:** Tue Jan 05, 2010 1:56 am

hum88 wrote:

Thank you Bill. It is very helpful.

In addition, you also take into consideration that the position (short/long) is to be in accord with the trend in bigger time frame.

Yes, anytime you can trade with the trend on the bigger time frame it is a less risky trade. Another thing, if you put a 55 EMA on your chart it can be a good guide. You can use it as a profit target or if it is to close to your entry point and blocking the direction you are hoping for you may want to think twice before you take the trade. It also always reminds you what way the trend is.

Bill

hum88 · **Joined:** Sun Nov 15, 2009 6:09 am **Posts:** 27

chillydog wrote:

hum88 wrote:

hi Bill,

it seems usd-jpy meet the criteria for short at 4hour chart. Would you share with us how do you exit the trade or determine profit target?

Thank you,
hum

Yes it did fit the criteria but I did not take it because I was scared of the uptrend on the 4 HR and daily chart. Would of been a good trade though. I put my SL just above the 4 HR candle and then figure my targets just like Vahid. Say your stop loss is 40 pips. Target 1 would be 20 pips and target 2 would be 40 pips. Move SL to breakeven when it hits target 1.

If the trade is with the trend I may make the first target 40 pips and the 2nd 80 pips. I had this situation today on the GBP/CHF 4 HR chart with a SL of 75 my first target was 75 and it hit and my 2nd target is 150 and it is still open and my SL is moved to break even. If you look at it you will say it did not fit the criteria and you are right. But the 55 EMA was above the 21 EMA and both angling down and the one candle broke all 3 MA's and the indicators looked good so I took the trade. Hope this helps.

Bill

Thank You Bill. I include a screenshot of GBP/CHF trade for future reference or it might help others. The green line is 55 EMA, red 21 EMA, gray BBM, and the red vertical line is time the trade was entered after the close of previous candle.

hum

chillydog · **Posted:** Tue Jan 05, 2010 7:48 am

hum88 wrote:

chillydog wrote:

hum88 wrote:

hi Bill,

it seems usd-jpy meet the criteria for short at 4hour chart. Would you share with us how do you exit the trade or determine profit target?

Thank you,
hum

Yes it did fit the criteria but I did not take it because I was scared of the uptrend on the 4 HR and daily chart. Would of been a good trade though. I put my SL just above the 4 HR candle and then figure my targets just like Vahid. Say your stop loss is 40 pips. Target 1 would be 20 pips and target 2 would be 40 pips. Move SL to breakeven when it hits target 1.

If the trade is with the trend I may make the first target 40 pips and the 2nd 80 pips. I had this situation today on the GBP/CHF 4 HR chart with a SL of 75 my first target was 75 and it hit and my 2nd target is 150 and it is still open and my SL is moved to break even. If you look at it you will say it did not fit the criteria and you are right. But the 55 EMA was above the 21 EMA and both angling down and the one candle broke all 3 MA's and the indicators looked good so I took the trade. Hope this helps.

Bill

Thank You Bill. I include a screenshot of GBP/CHF trade for future reference or it might help others. The green line is 55 EMA, red 21 EMA, gray BBM, and the red vertical line is time the trade was entered after the close of previous candle.

hum

Just for clarification I entered at the beginning of the candle on the red vertical line. My signal was the close of the previous candle.

Bill

hum88 · **Joined:** Sun Nov 15, 2009 6:09 am **Posts:** 27

hi Bill,

It seems aud-nzd has also formed the long signal complement the resistant breakout

Thanks,
hum

chillydog · **Posted:** Wed Jan 06, 2010 4:21 am

hum88 wrote:

hi Bill,

It seems aud-nzd has also formed the long signal complement the resistant breakout

Thanks,
hum

I am hesitant on this trade for 2 reasons according to my 21 EMA method. The 21 EMA is flat. The candle that broke the 21 EMA closed right below the 55 EMA which can be a resistance area. I did not take this trade even though we have the breakout. We will have to wait and see.

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

I am hesitant on this trade for 2 reasons according to my 21 EMA method. The 21 EMA is flat. The candle that broke the 21 EMA closed right below the 55 EMA which can be a resistance area. I did not take this trade even though we have the breakout. We will have to wait and see.

Hey Bill, What time is it there?

chillydog · **Posted:** Wed Jan 06, 2010 4:45 am

Vahid wrote:

chillydog wrote:

I am hesitant on this trade for 2 reasons according to my 21 EMA method. The 21 EMA is flat. The candle that broke the 21 EMA closed right below the 55 EMA which can be a resistance area. I did not take this trade even though we have the breakout. We will have to wait and see.

Hey Bill, What time is it there?

3:15 AM I don't sleep much :roll:

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

Vahid wrote:

chillydog wrote:

I am hesitant on this trade for 2 reasons according to my 21 EMA method. The 21 EMA is flat. The candle that broke the 21 EMA closed right below the 55 EMA which can be a resistance area. I did not take this trade even though we have the breakout. We will have to wait and see.

Hey Bill, What time is it there?

3:15 AM I don't sleep much :roll:

Like me. It is 3:30am here :shock:

hum88 · **Joined:** Sun Nov 15, 2009 6:09 am **Posts:** 27

chillydog wrote:

hum88 wrote:

hi Bill,

It seems aud-nzd has also formed the long signal complement the resistant breakout

Thanks,
hum

I am hesitant on this trade for 2 reasons according to my 21 EMA method. The 21 EMA is flat. The candle that broke the 21 EMA closed right below the 55 EMA which can be a resistance area. I did not take this trade even though we have the breakout. We will have to wait and see.

Thank you Bill for the valuable inputs.

hum

forexstudent · **Joined:** Tue Nov 17, 2009 11:16 am **Posts:** 10

Hi Chilidog

What are the parameters for RSI which you use, is it RSI (9) or RSI (3)?

What are the parameters for MACD?

Thanks

aquiagora · **Joined:** Wed Aug 05, 2009 7:11 pm **Posts:** 103

Hi Bill,

Re EURGBP on FLMA we are expecting a resistance breakout.

I have just had a look at the 21EMA H4 chart - there is a gap down and the H4 candle has opened just below the 21EMA, which is also below the BMB.
In addition the previous candle closed below the 200SMA.
RSI is just below 50 and the MACD is near 0.
W1 candle has a long upper shadow, so.....it could become a sell trade.

What do you say?
Regards,
aquiagora

chillydog · **Posted:** Sun Jan 10, 2010 7:45 pm

aquiagora wrote:

Hi Bill,

Re EURGBP on FLMA we are expecting a resistance breakout.

I have just had a look at the 21EMA H4 chart - there is a gap down and the H4 candle has opened just below the 21EMA, which is also below the BMB.
In addition the previous candle closed below the 200SMA.
RSI is just below 50 and the MACD is near 0.
W1 candle has a long upper shadow, so.....it could become a sell trade.

What do you say?
Regards,
aquiagora

Last Friday we had a 4HR buy signal. Price crossed 55 EMA 21 EMA and BBM all in one candle. MACD is heading up and we also had the RSI resistance break on the same candle. I think gap will fill and it will continue up for a little while.

Are you referring W1 as weekly candle? If so I do not see any long shadow. Last weeks candle is pretty bullish and closed above BBM.

Bill

aquiagora · **Joined:** Wed Aug 05, 2009 7:11 pm **Posts:** 103

chillydog wrote:

aquiagora wrote:

Hi Bill,

Re EURGBP on FLMA we are expecting a resistance breakout.

I have just had a look at the 21EMA H4 chart - there is a gap down and the H4 candle has opened just below the 21EMA, which is also below the BMB.
In addition the previous candle closed below the 200SMA.
RSI is just below 50 and the MACD is near 0.
W1 candle has a long upper shadow, so.....it could become a sell trade.

What do you say?
Regards,
aquiagora

Last Friday we had a 4HR buy signal. Price crossed 55 EMA 21 EMA and BBM all in one candle. MACD is heading up and we also had the RSI resistance break on the same candle. I think gap will fill and it will continue up for a little while.

Are you referring W1 as weekly candle? If so I do not see any long shadow. Last weeks candle is pretty bullish and closed above BBM.

Bill

Yes, I meant the weekly candle and on second inspection I see there is no long shadow. I have a vertical dotted line on the chart for the end/start of the day, which made the shadow appear longer.

I see that I should add the 55 EMA to my chart.
The 200 SMA is flat and the 500SMA is sloping slightly upward - does that have much significance?

aquiagora

chillydog · **Posted:** Sun Jan 10, 2010 8:15 pm

aquiagora wrote:

chillydog wrote:

aquiagora wrote:

Hi Bill,

Re EURGBP on FLMA we are expecting a resistance breakout.

I have just had a look at the 21EMA H4 chart - there is a gap down and the H4 candle has opened just below the 21EMA, which is also below the BMB.
In addition the previous candle closed below the 200SMA.
RSI is just below 50 and the MACD is near 0.
W1 candle has a long upper shadow, so.....it could become a sell trade.

What do you say?
Regards,
aquiagora

Last Friday we had a 4HR buy signal. Price crossed 55 EMA 21 EMA and BBM all in one candle. MACD is heading up and we also had the RSI resistance break on the same candle. I think gap will fill and it will continue up for a little while.

Are you referring W1 as weekly candle? If so I do not see any long shadow. Last weeks candle is pretty bullish and closed above BBM.

Bill

Yes, I meant the weekly candle and on second inspection I see there is no long shadow. I have a vertical dotted line on the chart for the end/start of the day, which made the shadow appear longer.

I see that I should add the 55 EMA to my chart.
The 200 SMA is flat and the 500SMA is sloping slightly upward - does that have much significance?

aquiagora

Generally speaking what ever direction a MA is angling that is the direction price wants to go. I have only used the 200 and 500 MA's as profit targets in the past. I have recently took the 200 and 500 off of my charts because it was mucking up my charts and I just use my risk as the profit targets so I don't even pay attention to them now. But I know one guy that uses them all the time but they just added confusion to me and they rarely made much significance to me.

aquiagora · **Joined:** Wed Aug 05, 2009 7:11 pm **Posts:** 103

aquiagora wrote:

The 200 SMA is flat and the 500SMA is sloping slightly upward - does that have much significance?

aquiagora

Quote:

Generally speaking what ever direction a MA is angling that is the direction price wants to go. I have only used the 200 and 500 MA's as profit targets in the past. I have recently took the 200 and 500 off of my charts because it was mucking up my charts and I just use my risk as the profit targets so I don't even pay attention to them now. But I know one guy that uses them all the time but they just added confusion to me and they rarely made much significance to me.

Thanks for that - the H4 candle is looking a lot different all of a sudden.

chillydog · **Posted:** Tue Jan 19, 2010 8:16 pm

Hello everyone,

I just watched Vahid's new video about "what is the best system?" and everyone needs to take what he is saying religously. We can search for the "Holy Grail" forever jumping from system to system and never getting anywhere.

Anyhow I notice we have no posts on this thread for several days and I think I know why. You are all following Vahid's RSI Breakout System. So am I!

I reccomend that system way over this 21 EMA we were working on. It was so easy for me to follow that system because it was so similar to what I was use to looking at. The RSI Breakout is so much better because it has clear cut rules which my rules were kind of fuzzy before. I have been following it for the last 2 weeks and my trading has improved, I have more trade set ups and less losers. If you were trying to follow this 21 EMA method or still are I suggest you try the RSI Breakout System because it is similar to look at and easier to employ.

Good Luck to everyone.

I would be glad to have a discussion about the RSI Breakout if anyone else would like to.

Bill

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

Hello everyone,

I just watched Vahid's new video about "what is the best system?" and everyone needs to take what he is saying religously. We can search for the "Holy Grail" forever jumping from system to system and never getting anywhere.

Anyhow I notice we have no posts on this thread for several days and I think I know why. You are all following Vahid's RSI Breakout System. So am I!

I reccomend that system way over this 21 EMA we were working on. It was so easy for me to follow that system because it was so similar to what I was use to looking at. The RSI Breakout is so much better because it has clear cut rules which my rules were kind of fuzzy before. I have been following it for the last 2 weeks and my trading has improved, I have more trade set ups and less losers. If you were trying to follow this 21 EMA method or still are I suggest you try the RSI Breakout System because it is similar to look at and easier to employ.

Good Luck to everyone.

I would be glad to have a discussion about the RSI Breakout if anyone else would like to.

Bill

Hi Bill,

Thanks for your support as usual.

Of course, in that video, the moving average was just an example. I was not talking about your 21MA system

I hope you excuse me if it sounds like that.

chillydog · **Posted:** Tue Jan 19, 2010 8:52 pm

No I did not think that at all. Bottom line is the RSI Breakout is better, more concise than what I was doing before. Furthermore, you know much more than me and that is why I am here, to learn. If my results continue like they have recently I will need no more books or systems. I think I finally can put a stamp on my trading method. I have been getting close for awile but using the RSI for the signals has give me a much clearer picture.

Bill

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

No I did not think that at all. Bottom line is the RSI Breakout is better, more concise than what I was doing before. Furthermore, you know much more than me and that is why I am here, to learn. If my results continue like they have recently I will need no more books or systems. I think I finally can put a stamp on my trading method. I have been getting close for awile but using the RSI for the signals has give me a much clearer picture.

Bill

Obviously you have enough discipline to follow the RSI system and also all other systems. If you see that RSI system works for you it is mainly because of your discipline.

21 EMA

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