Posted in Forex Trading Systems
This strategy is originally created by Philip Nell a veteran stock trader with more then 10 years experience. This has been tested for trading EUR/USD and GBP/USD. I like the way it define market motion. Though this is a great trading system, I personally don’t use this since I don’t like trading in 5 minute time frame.
It’s quite simple, what you need is 50 SMA, 21 EMA and 10 EMA attached on your 5M Chart. Open position when the angle of the 50 Simple moving average are greater than 20 degrees and the price retrace back into the zone of the 21 Exponential moving average and the 10 Exponential moving average. Set stoploss at 6 pips plus spread and profit taking at 8-10 pips. Move stoploss to breakeven as soon as 6 pips gain is obtained.
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I have a comment on the 20 degree angle 50SMA requirement. How do you know if the true angle? If you happen to resize your chart to appear wider then the angle appear flatter. If you resize it to narrower then the angle appear sharper. So it’s relative to your window shape. So how do I know the true angle of the 50SMA. Is there another indicator?
I don’t think resizing the chart window will change the angle. Angle doesn’t depen d on dimension, moreover if you measure two separate object.
it would be easier if you draw two imaginer line representing the 50SMA and a horizontal line.
I have a commment on the 50SMA 20 degree angle. How do you know the true angle of the line when the angle is changing depend on the width and height of the chart window. The angle will appear flatter if you widening the window. Is there a setting that I need to do to make sure the angle the same as the sample chart. This number seem to be relative. Is there another indicator I can use besise judging the angle of the 50SMA.
I have no clue because I don’t trade this system.
NO strategy is a holy grail most times u see wrong movements to the zones ie moveing from ema 10 to 21 and even to 50 sma it happens when trend is changing so if ur useing this strategy 1. trade only on euro and us sessions dont trade on asian session 2. the ema 10 ,21 and sma 50 act as support and resistance so when support turns to resistance and vise vasa it NO TRADE signals so wait till a trend is defined 3. it a scalpig strategy and dose not worth what a trader will take as the main method of trading its only used to lock up little profits. thanks
you use the linear regression line of two points on the MA.
then measure the angle of the linear regression line. don’t look at the chart for angles, they are not visually true.