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Author: trago1 - Replies: 5 - Views: 332
Price action

I would like to share one simple price action observation.Use of slower SMA(simple moving average) and faster EMA(exponential moving average).You can use any number you like, from 3 and above for slower SMA and from 2 and above for faster EMA.
I use EMA 2 and SMA 7. Rule is rather simple: We need a crossing of both.If EMA 2 is above the SMA 7 BUY and vice versa, if EMA 2 is bellow SMA 7 SELL.
Author: trago1 - Replies: 2 - Views: 244
Price action
Filtering bad-non active areas and closing positions with ADX(Average directional movement index).
I use ADX 2(parameter)and I placed vertical red lines on the peaks of ADX.
This is used for closing positions only.
For filtering of entry positions ADX levels can be used at the same time !
What is above 50, or higher, is good to go.
What is bellow 50 is NO TRADE !
And look : we are on 5MIN TF EUR/USD !
Author: trago1 - Replies: 20 - Views: 1032
Price action
Trend following filter is based on the same principals with a little tweeking of ADX levels for NO TRADE- 60 ! and 75 for TRADE AND using HTF(HigherTimeFrame)H1 or 30min if you preffer.As you can see from the photo basic rules are still valid even on H1!
Therefore M30,H1 should be used as a ''precondition'' or a first step in trading.
Difference is that on H1 or M30 is less ''noise'', but we have to be much more patient and wait for a good-strong opportunity.
Keeping ADX on 2, we are assured