Saturday, May 08, 2010

MOving Avarage Crossover #2 - 10/25/50 EMA Crossover

Second one that I get to know from research: 10/25/50 EMA Crossover


Currency            : GBP/USD EUR/USD 1H (or any currencies you like)
Trading Period  : 2-11pm
Indicators           : 10EMA, 25EMA, 50EMA


Capital               : $xxxx
Lot Size             : Advisable 0.0005 of $xxxx 


>>When Blue line(10EMA) cross Red line (25ECM), the signal is coming.  When the 25 EMA crosses the 50 EMA, you will either buy or sell, depending on which direction the EMAs are crossing.
Buy Signal          : When Blue line(10EMA) cross Red line (25ECM); it is crossing up, you Buy.
Sell Signal          : When Blue line(10EMA) cross above Red line (25ECM); it is crossing down, you Sell.


>>You might want to wait for the bar to close before placing the trade to make sure that this is a valid signal and not a false alarm. This way, you'll filter out some of the fake crosses. 


TP         : 50 or until next cross (You may practice either one or both)
SL         : 50 or SL is discretionary. First choice is the high or the low (depending on if long or short) of the previous day. If this is too far away and would not give a good risk/reward ratio, a major support or resistance point can be used.


**Sell Signal**


**Buy Signal**

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