this is a very profitable and simple strategy. i use the same strategy using 10,20,50 ema on daily and 4hr chart. i use them as dynamic support/resistance.
I don't buy the concept of dynamic support and resistance - but the averages do provide a median price point and a general area to observe price action during mean reversion.
I've found that EMA's and *RANGE* bars work really well (not Renko bars). E.g. 3 Tick range bars on the /ES, long when > 55 EMA, short when under. Model/backtest that puppy.
I’m not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
The good thing with MT5 is that you can put the EMA periods as input parameters and test if those values are the best for the current market. The last point is valid, the lagging makes the signals come in too late, the only leading indicator is price itself, so you should focus on price in relation to the EMA.
I dont want to mess with your knowledge,but best thing you can do is observing on market,every day so you can get "synchronized" and know what to expect. But it take discipline,to be calm and not be in hurry for investing...and its boring i know
yup back testing always look good , but in real time your mind is almost always thinking it can go either way , better to set your trade and put your stop loss and just walk away , check on it in intervals depending on the chart time and move your stop loss up if indeed, that is if you didn't get stopped out on those first few candles
This is a pretty good video. Nice breakdown of moving avg crossovers. Nothing works 100% of the time but if you combine multiple pieces of data you can draw a clearer picture.Well Done Sir!
No disagreement here. The averages are really secondary to the other concepts talked about in the video. They do provide a framework for price and objective determination of trend and ranges.
All in all a knowledgeable video about a questionable strategy. I think you nailed it when you said "price action", check out Brooks PA videos. Creating so many rules and special conditions just makes the decision late. It is a little funny that you suggest the viewers to do their own backtesting. I have to ask did you do any backtesting before posting this and if so what were the results?
There is nothing funny about telling viewers to do their own back testing before using a trading strategy. I do not trade this strategy therefore have no desire to do anything but a rudimentary test. Some however may find utility in this strategy and must do their own work. I have tested and don't find much of an edge in reading individual bars. Some price patterns I do like.
There are many ways to quantify a pullback. For this strategy, you can look for price to pullback somewhere between the averages. You can draw simple trend lines to highlight pullbacks. You can measure a 30% retrace of swings and look for an entry. You can look for momentum moves in price and ranging at the highs of the moves. It depends on the trader.
I use moving average only as an indicator of what the trend is. I would never actually trade-off of them. I tried when I first became a trader only to realise that the chart is showing you what the moving average is showing you only the moving average is delayed so you probably missed some value.
@@duelcity8918 do you trade every flip? or do you use like a 150/200 ma and only trade in direction of the trend? ... what about whipsaw during sideways or extreme low volume times?
It would be helpful if - on your charts, the color/value per EMA is indicated. ie; is 55 red? or yellow or green??? you go thru the examples quickly and it's hard to determine. The upper left of your chart has all three EMA values, but it also needs to indicate which color each value is. Otherwise, very helpful video.
Are you changing the offsets on the EMAs so that they are moving a bit after or a bit in front of the candles? Feels like you can get other perspectives when to enter then.
That's a great question and I assume you are talking about displaced moving averages. I am not changing the offset however is you look at the Alligator indicator, it does: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-TmJTh4wPWJg.html
Listen every one, every single moving average work, if you understand better, no moving average without understanding tell you where you in and where you out.
The common response from far too many is "indicators don't work". Work? What is their definition of work? You are correct....you have to understand the information you are being given.
It means that price has moved above the previous swing (high) in the market. The definition of an uptrend is higher highs and higher lows. A new high.....is a higher high.
Any timeframe you choose to use must be tested using your understanding and trading rules. All times frames have good and bad qualities. More confirmation? Wait for too much confluence in variables will have you missing the move. Keep it simple.
@@Netpicks1 Thanks! That's precisely what I'm doing to test this strategy. I found that often times price moves significantly before any EMA crossing happens.
There is no one size fits all time frame. Some traders use daily signals while others use 1 hour. There is no best or safest period. Best thing to do is test out the time frame you could consistently trade.
@@Netpicks1 I like the 15 minute, then 1 hour, then 4 hour. The day chart hides all the small details. The 4 hour is best for seeing the big picture, 1 hour is best for perspective, 15 mins is best for investor sentiment. I call it the micro psychology of the moment.
@@lambyeeros In my own trading its the M-W-D-60 where the higher timeframes are used for structure. Investment including retirement accounts depend on the Yearly Quarterly and weekly
There is no "should" and it depends on many factors including the volatility of your instrument. Testing is the only way you can come up with anything that may work well.
I don't know what the setting will be. Start with the default and test from there. Check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE--OcMCEY3PJQ.html
