Indicators
1H (of 30MIN, but you will get wore whipsaws) candlesticks/bar charts
18 EMA & 28 EMA (put them in red)
5 WMA (in blue) & 8 WMA (in yellow)
Recommended Pairs
EUR/GBP
EUR/USD
Basic Rules
- Long term : 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.
- Short 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.
- Open 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.
- Open 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:
- Close Long : The price has reached a top and 5 WMA dives under 8 WMA.
- Close Short : The price has reached a bottom and 5 WMA jumps above 8 WMA.
When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention...! As long as the red tunnel boundry’s doesn’t cross each other there is no problem, but often this is a sign that they will. Enter a position were the red tunnel boundry’s cross and exit that position when they cross again.
Warning : Always use a stop loss - it's recommended a 10-15 pips stop loss.