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by Jon Panangkis on Mon Feb 08, 2010 9:54 pmmoneypips wrote:
One of the most powerful technique if applied properly with discipline
Time frame: 3 or 4 hours.
Indicators:
SMA 200, SMA 100 – these are two influential SMAs; you will find price “obeying” their boundaries.
SMA 15
EMA 5
MACD (12, 26, 9)
Trading Rules:
Since we are dealing with “unpredictable until set” indicators (EMA,
SMA, MACD) we will always be using signals AFTER the current signaling
candle is closed.
- Never open a trade if price is less than 25 pips away from 100 SMA or 200 SMA.
- Do
enter the market when price has crossed either 100 SMA (expect large
move) or 200 SMA (expect very large move) and only after the current
candle has closed on the opposite side of the SMA. SMAs this big do not
get crossed very often.- Set stop
loss initially at 50 pips. Look for nearest support/resistance level
and adjust it accordingly – it could grow up to 70-90 pips but it
should not be less than 40 pips. Anyway this measure is taken only to
save us from sudden “exploding market”, in all other cases it will not
be hit as our system will take you earlier from the trade.- Enter in the direction of 5 EMA once two conditions are met:
5 EMA crosses 15 SMA “permanently” – which means the current candle is
- closed and lines are “locked” and will not move misleading us.
- MACD lines are crossed, and the current candle is closed.
The 2 crosses do not have to happen simultaneously. MACD lines can
cross earlier than EMA and SMA or shortly after, but there should be no
more than 5 candles in between 2 crosses.
If “2-cross” condition is not met – no entry.
Exit
rules: exit with the same rules as for entry: when two crosses are in
place. If we have only one cross – we are still in trade.
Profit target:
- can be set to a desired amount of pips and followed with trailing stop further once the target is reached.
- or use 50 pips profit target – do start chasing the price with trailing stop after gaining 50 pips.
- or you may not use trailing stop and set no profit targets, then exit according to Exit rules – on the next “2-cross”.
This is one of the most powerful technique that sarup tried to inform everyone.
Sorry Mr. Sarup but as the original creator of this technique, I have still a full right to revealed this technique.
Try on Demo just to get familiar on the setup, how it works before go for live accounts.
Enjoy
Mayang Sari
O yess! I agree. Especially the TF.
The longer the TF, the near to Zero the False Signal is.
True! ... true true true! hehe.... 
