Can be used in pairs GBP / USD, EUR / USD, GBP / JPY, USD / JPY, USD / CHF, USD / CAD, AUD / USD, NZD / USD, EUR / JPY USE TIME FRAME: Best Time Frame: H1 Intraday: M30 à SL 30 TP 20-40 Long Term (2 days Until 2 weeks)
PROCEDURE : 1.
Open MT4, setting at Time Frame M30 and H1. 2. Eliminate YOUR GRID on the chart, let me clean his clay EMA uenak tenann ... 3. Put Indicators Moving Average:
* 8 EMA EMA (YELLOW)
* EMA 12 EMA (VIOLET)
* EMA 24 (CORNFLOWER BLUE)
* 72 EMA (khaki)
4. Put the MACD (12, 26, 9) indicator TYPE CLOSE. * Fast EMA = 12, Slow EMA = 26, MACD SMA = 9, Apply to: Close
5. Put Strenght Relative Indicators Index (14) , if the RSI (14)
6. MARKET ENTRY (BUY / SELL):
* ENTRY BUY: We EMA EMA 8 and 12 to move upward cross EMA 24; where EMA 8, 12 and 24 moves (still) above the EMA 72. Or when EMA 8, 12, 24 cross into the EMA 72 (for news). Check whether the RSI (14) above 50.
* SELL ENTRY: EMA 8 and EMA 12 moves downward to cross EMA 24; where EMA 8, 12 and 24 moves (still) under the EMA 72. Check the RSI (14) under 50.
7. MARKET EXIT (CLOSE)
* Intraday: EMA 8, 12 EMA cross EMA 24
* Long Term: When EMA 8, 12 and 24 crossed, but when EMA 8 and 12 only touches EMA 24, do not close, because the price is still going to bounce back and rally, close if EMA 8 and 12 had realy cross the EMA 24 (big profit !!!).
8. Note: for EMA 8, 12 and 24 are still above the 72 EMA BUY then fixed, and during the EMA 24, 12 and 8 are still below the 72 EMA is still SELL, until EMA 8, 12 and 24 cross, or EMA 8.12, 24 cross the EMA 72. If EMA 72 cross EMA 8,12,24 ready reversal.
EXPLANATION :
EMA 8: fast moving price, intraday as a guide, showing price moves in units of 8 days.
EMA 12: moving moderate price, intraday as well as guidelines, indicating a price to move in units of 12 days or semimonthly.
EMA 24: slow-moving price, as guidelines for long term, indicating the unit price moves in 24 days or semimonthly. Acts as the boundary between the Buy and Sell.
EMA 72: very slow moving, as guidelines for long term, indicating a price to move in units of 72 or 3 months. He acted as a Trend Setter; if the above means price still buy, if sell-down means.
Well, EMA 8, 12, 24 and 72 accommodate all trading styles, so can be used for intraday and LONG TERM TRADING. But, TIME FRAME suitable only M30 and H1, because TF <>, while when using> H1 will be too late market entry.
"So, the best time frame for this method are M30 and H1, please be carefull guys Regarding this matter."
Why not use EMA EMA 3 or 4 as a fast moving? because EMA 3 dan 4 are too fast, so that blur in the M30, too quick cross so it can get stuck "false trend."
PSYCHOLOGICAL TIPS:
Trust on trends in your chart, when the M30 and H1 trend UP (8,12,24 EMA in the EMA 72, do not SELL), vice versa if the trend DOWN (EMA EMA 8,12,24 under 72, do not BUY)
Here is an example for the EUR / USD and GBP / JPY, apologize, for other pairs please try itself, illuminating the same awful results, believe me or not, i had been done for all pairs Backtesting
The basic principle of cornflower methods:
That a trade must be in accordance with the daily trend (remember, the trend is friend), in this case the daily trend is represented by the EMA 72 on H1 TF. So that every position we take should buy must be supported by the EMA 72. Suppose we buy op, the EMA 72 EMA should be under another, and vice versa. While EMA 24 serves as a benchmark on the current trend is. Eg EMA 72 upwards, downwards EMA 24 this means a daily trend is still bullish but now the trend is bearish. This condition can be interpreted is going correction in the daily trend. EMA EMA 8 and 12 serve as entry points. As he hugged and then suddenly split up, that's when the best entry by cornflower. Remember, the position of buy / sell we have to be supported by the EMA 24 and EMA 72.
Use of cornflower method is twofold:
1. Pullback (conservative) entry: use TF H1
How to use this method is conservative when the price of having pullback / correction. That is when the price of 8, and forcing EMA EMA 12 embraced a moment and then parted. This is the heart of this system, the pullback entry, which then prices are expected to follow the daily trend (EMA 72). Only trade when EMA 24 and EMA 72 the same position with the position of our trade. So if price trends are forcing the transition experience EMA8, 12.24 U-turn through the EMA 72, is highly discouraged memekai this method (see how to-2). Let EMA sequentially lined up and then we enter another trade when EMA 24 and EMA 72 is behind us (rich supporters only). We open the buy now exist under the EMA EMA 72 others, We open sell when there is above 72 EMA EMA another.
2. Initial (agressive) entry: use TF M30
Because the trader mentality berbeda2, then the way to-2 are useful for the aggressive trader. 2nd way is that we take the position if the 8 cross EMA EMA 12 EMA 24 and continue cutting. For example, 8 interrupted EMA 12 EMA from below, then continue cutting EMA open 24 then we buy, and vice versa. But should be careful to use this method because we can take a position contrary to the trend. Or in other words we take the position when the price is going through a correction (very dangerous). So when we decided to trade its way into-2 was, never lef computer, because the reversal can happen anytime.