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What do you need? - 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)
Long term The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start of a trend and the end of a trend. Short term The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of the trends. Entry Signals You should only open a position, when the red tunnel is extremly narrow or crossed ! LONG: 5 WMA & 8 WMA cross the red tunnel upwards. If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong. SHORT: 5 WMA & 8 WMA cross the red tunnel downwards. If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong. Exit Signals Signals that show the end of the chosen trend: - Long: The price has reached a top and 5 WMA dives under 8 WMA Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA Close position
Always close your position when boundry’s of the red tunnel cross eachother or when they become so narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position and open a new postion in the other way (If you were long, close, open a short postion), When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will. Basic rule !!!Enter a position were the red tunnel boundry’s cross and exit that position when they cross again!!! !!! Always use a stoploss - I recommend a 10-15 pip stoploss !!!
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