After having biases beat out of me with losses, I can finally trade the charts. I still have gut feelings on the markets but I let the charts tell me if I’m wrong. I’ve built models to use the 8 and 21 day, not exactly like Scott, but similar. I think this lecture was from a while ago but if it wasn’t, one like this was a final breakthrough for me to develop my system.
So can I simply set rule on my brokerage tool to buy when 8 cross above 21 EMA and sell when it cross below 21 EMA ?? please advise and what is an ideal timeframe for the chart, 1 min, 5 min 15 mins...etc Thanks
You can use it on any time frame depends on your trading style. But yes if 8 crosses up 21 it’s an buy signal and vice versa. But I would recommend to look what price telling you, cause this can also caught wrong signals.
Thanks so much for your help. I hear a lot of day traders talk about when the 8 day and 21 day crosses over. Would you kindly explain what opportunities the crossover provides?
Obviously you can see the price will break the nearest SNR lines. Previous H4 is a bullish candle. Price above EMA21 (buy). BUT please follow the trend (below EMA50 sell and above EMA50 buy). This is basic. Any time frame. Good luck
By the 8/21 day rule, is it meant that the 8 day MA must note above the 21 day MA? If not and it is meant that the price must quote above the 8 and 21 MA, then why not just look at the 21 MA?
Actually, the EMA crossing is just a visual. The main point is that, once the 8 cross 21 come, you see is there any support or resistance right there? See video 10:45, once the 8 cross 21, there are support (blue line). The price MUST break the support as well for VALID sell. Same goes to buy.
Hi Redler, Sometime 6 months Daily charts show a sell signal however a 30-day hourly chart shows a buy signal. I went over your books but I still lack my understanding, could you please help me understand my aforementioned confusion on which to follow?
Pick one time frame and just stick to that (preferably a higher one, especially for a beginner). It's the aggregation period that matters (1 minute, 30 minute, 1 hour, 1 day, 1 week). The 1 year:1 hour chart is going to give you the exact same information as the 6 month:1 hour chart. The only difference is the one year will show you 1 year's worth of 1-hour bars, candlesticks, etc. while the 6 month only shows you 6 months' worth. The necessity for using multiple time frames is a myth and, in actuality, detrimental.
may i know for thoses ibanker (hedge fund department), in a short term trade / day trade situation , do they Long & short at the same time to hedge out risk ??' thx
This is brilliant and quite captivating as well! Investing in forex has really been favorable to me this season, I make profit from my investment on a weekly basis best regards to Mr. Ray Perkins mentorship/guidance 🇺🇸
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