i found a good working tip for forex

[iiiqqqeg]

i'll try to explain but i don't know how to draw the lines here .....


on 15 min , 30 min chart or 1 hour chart ... the bigger time frame the the more gain ...



i didn't need to set any stop loss with this one ... just don't be greedy and set limited profit .....

in 2 situation u apply this method ....

first ....we have the 20 MA (exp) is starting to go down but it 's still FAR above the 50 MA(exp) , and the in the same time the price went under the 50 MA ... this is a short term BUY signal .... try to get the cheapest price ( the more far from 50 MA) & make sure white candle is forming using the smaller charts (5 min , 15 min etc ...) ......

second .... we have the 20 MA(exp) is moving up but it is FAR under the 50 MA(exp) , and the same time the price went above the 50 MA, this is a short term SELL signal .. and try to get the highest price & make sure black candle is forming using the smaller charts.


it worked with me 100% ....

i have other tips but i didn't finalize them as this one ....

[SausageRocket]

great tip. l will try this when i get home. good job

[jon]

thanks for the tip! i'm fairly new to this so if you could explain something to me that would be great. when you say MA(exp) are you talking about exponential moving average? And when you say just MA are you talking about simple moving average? Those are the only two availabe on my broker's platform and I'm trying to figure out how to use them. Thanks!

-Jon

[iiiqqqeg]

yes Jon that what it means ... and the exponential MA is more accurate for day trading ...... because it takes more in consideration the last changes

[jon]

Ok, here's a screencap i took from my platform showing the moving averages (color coded and listed at the top) for EUR/USD. Is there any way you can better explain this technique by describing this screencap? Thanks!



-Jon

[redsheetz]

yes u want to go biggest time frame first
4hr is pretty much max u see ahead without risking a big retrace
im glad to see discussion like this, we're all here to help each other
please set a S/L , even if your 99% sure u dont need it, just please set it.
ill try and get a chart up sooner or later here, im busy with other things right now, but ill show everyone how i draw my lines , its just simply support/resistance technical analysis tho basically, ill try and help u get a visual tho, in my Currency Trading Online thread ive freehanded a hypothetical Forex chart, and put in some lines so u can get the basics.

[wolf825]

I just read this thread and I concur with redsheetz... Set a Stop Loss...PLEASE...even if its a 50 pip spread--set one. They can SAVE you and save you big. Lesson I learned the hard way. One of my first times (about 16 months ago) I was just starting trading Forex with real $$$ cause i had kicked butt in demo's--I thought stop losses were for play-it-safe wimps and I could rake in the $$ and ride out any change no worries.. WELL.... I took a cocky over-confident 3 lot trade, in the wrong direction, when the NFP came out much worse than had been hyped all week--and the EUR/USD blew out my entire mini account in about 25 SECONDS taking a HUGE drop over 100+pips, and I could not manually close out because the price kept dropping... My account closed itself automatically when my margin ran out... STOP LOSSES--take em like you take in AIR...they are GOOD and will keep you breathing and alive. I never set a trade without a SL anymore....

As for the EMA discussion--this IS a good discussion. EMA's are in my opinion GREAT for showing a direction & trends in a 4 hour chart--and Daily charts and other long term times.. In 5 or 15 minute or short term charts they are interesting to watch, but I find a bit hard to trade on, in how they cross and twist each other sometimes, because when 2 or 3 of your EMA lines cross in a long term chart, they can tend to indicate a change in trend or direction which is great to catch..or indicate the market moving down or up for that pair.

FWIW..I use 3 or 4 EMA lines...set at 30, 62 and either 5 or 15.. Just my personal preference I have grown use to--everyone has their own ideas on which is better. I like 30 and 60-62 range a lot better then a 20/40. For me, once I get a candle close over the 62 I know I am usually safely into a new direction, without a whipsaw or unexpected reversal catching me.. Backtest a 30/62EMA and look at the difference between that and a standard 20/40 and you will see what I mean...and you will see how a lot of the candles bounce off it and reverse...and when they cross it and close, they tend to follow thru most times... But EMA's are GREAT for long term charts for the hour+, days or weeks....

Here is a very interesting article to read on Indicators and Oscillators...not directly commenting to EMA's, but since folks seem interested in the TA stuff.... http://inet.intershow.com/teLessons/...d=fxNL10102005

-w

[iiiqqqeg]

thx redsheetz and wofl for ur advice ... yes u right it must be stopp loss somewhere

on the chart the Jon put here ... look at it from the left to right ... u gonna c the first long white candle which penetrated both the 20 MA and the 50 MA .. that where i meant to put ur sell order after making sure the coming one is black from the smaller chart ...(in this case the 15min one ) ...


hope it's clear ..if not i'll try to rearrange what wrote