System Review: The 34 EMA System

I think it work best, although float indicator got some of lag , but I think it can use as a trend direction detector , and use your system as double conform for entry. Submitted by Edward Revy on December 27, - If you loose all your chips, you go home. Hi Nasri, It works on all time frames without exception. I looked at it on an hourly chart and it looks like it picked up most of the long trend from around aug 9 till aug Join me as I find, develop, backtest, and rate different mechanical, expert advisors EA , and algorithmic forex trading systems. I currently have it set to the following for a 30 minute chart:

May 11,  · 34 EMA Trading Strategy for newbie's:) Trading Discussion. Here is a sample chart with three 34 EMA's of the HIGH, CLOSE, and LOW. Your first assignment is to remove ALL form your chart and ONLY add this TOOL to your chart!

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Once we've found both swings, draw horizontal lines thought them as shown on the screen shot below: You can now trade breakouts out of those ranges, or wait till there is a new trend to be traded. Submitted by User on December 20, - Submitted by Ken on December 20, - Ken, The Cat Preacher. Submitted by Nasri on December 26, - Hi Edward, Thanks for the valuable info.

Submitted by Edward Revy on December 27, - Hi Nasri, It works on all time frames without exception. Submitted by ivan on December 27, - Submitted by Edward Revy on December 28, - Submitted by Keith on January 2, - Hi Edward Hope you and family have a very happy new year Thanks for sharing this trick to predict ranging market.

Just have some questions: I think if we are able to spot ranging market then we can take advantage of it. Thank you, Regards, Keith. Submitted by Edward Revy on January 14, - Thank you, Keith While in the range, we use our defined range boundaries to enter and exit trades. Shorts are the exact opposite. Stops and targets have not been plotted. The first trade setup is 1. A down sloping trend should not connect a lower peak if the low of that peak has not broken lower than the previous mechanical trend line drawing tip!

Price does break above the trend line but takes 3 more candlesticks to break above the 34 EMA. This trade did not run very far and I will show later that you would have still made a profit on it. I will show two methods to take your profit targets. Our second trade is 2. The last green circle is simply highlighting that the trend line still interacted with price weeks after it was drawn. A huge candlestick takes out both the moving average and the trend line as indicated by the arrow.

The stop loss is straight forward. You enter at the close of the valid candlestick the ones with the arrows and place your stop below the low of it. Your stop loss will vary depending on the size of the candlestick that validates the setup. If the candlestick is much smaller than the candlesticks before it, you may opt to use a 2 or 3 bar stop instead of below the valid candlestick.

This chart is showing where you would place your stop. If your stop lies just above or below for shorts a consolidation of price, you may decide to protect the stop below the cluster.

That will increase your stop size and reduce your position size so be warned. The chart also shows structural resistance price targets other wise known as support and resistance. Those will depend on the overall trend of the market and how aggressive you want to be at these price points. This next chart shows a different way to take profits — Fibonacci extension levels As shown by the arrows, you draw a normal Fibonacci retracement level but you also have extension levels activated.

I use the following:. You want to use obvious swings to draw your Fib and even is you used the full swing down on the first trade, you would still monitor price action at resistance.

Our first trade eventually rejects slightly below the 1. The second trade is using the full pull of the swing down. There is not an obvious swing level other than the original pivot. Since the system generated a negative return just like Sproule System did, its Sharpe ratio also came in negative. Also, the average losing trade of Prior to tweaking the system for backtesting purposes, I must admit that it already caught my eye because of its simplicity. Just a couple of EMAs and a trailing stop sounds simple enough, right?

But when I started mechanizing some of its rules, I realized that the system was far too simple for its own good. There were some unclear rules about entries and exits that might leave a newbie confused so I decided to deduct just a couple of points for newbie-friendliness.

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The 34 Ema Trendline Break Swing Trading System Is An Effective Swing Trading Strategy in a trending Forex market. Its not a crossover system. Greetings earthlings! I, Robopip, have emerged from my pod to introduce the next mechanical trading system that I will be backtesting. Aside from giving paulaelli the honor of joining our Best Forex Systems Hall of Fame, the 34 EMA Crossover System also caught my interest because of its sheer. #3 Range-bound trading (34 EMA + 5 EMA) Submitted by Edward Revy on December 17, - Many systems start with words: "I’ve been observing charts for a while, and suddenly an idea popped up in .