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Thanks for this. The picture below shows where I place the stop initially and how I tighten it up until it gets to break even.

 

Back testing appears to support the view that leaving the stop a tick below the low of the hammer, untouched, results is more profitable trades and less break even ones.

 

What's your view on this? Thanks!

 

My view is -- very nice trade entry and stop. And stop does not move.

 

I've never found trailing a stop to be a good idea, but that doesn't mean it can't work. I know moving the stop 'feels good' but that feeling usually cost me money so I just stopped doing it.

 

Nice charts though, feel free to post those in this thread! Can't tell what market, timeframe or anything on your chart.

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Thanks for this. The picture below shows where I place the stop initially and how I tighten it up until it gets to break even.

 

Back testing appears to support the view that leaving the stop a tick below the low of the hammer, untouched, results is more profitable trades and less break even ones.

 

ake nice chart and setup ..Just curious Is what timeframe the chart is and what instrument ? The ma is 20 ema?

 

Also nice chart JMC still working to get the entries right ...but this gives a good setup ..

 

Pat

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Just curious Is what timeframe the chart is and what instrument ? The ma is 20 ema?t

 

It's a 1m EUR/USD spot chart, for yesterday, with a 34EMA.

 

Here's another setup, from just a few minutes ago, same instrument and EMA.

5aa710a67b7e5_2011_09.22-Charts03.thumb.jpg.585c7961128722ea62fb50c12afe3532.jpg

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It's a 1m EUR/USD spot chart, for yesterday, with a 34EMA.

 

Here's another setup, from just a few minutes ago, same instrument and EMA.

 

Pretty interesting. Definitely no shortage of opportunities there.

 

Oil is really moving today. Nice short entry opportunity in CL this morning at 8:11am EST. Entering at the EMA took little to no heat and moved from 82.35 to an intraday low (so far) of 80.25 in about an hour.

 

2011-09-22_cl.png

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Pretty interesting. Definitely no shortage of opportunities there.

 

Oil is really moving today. Nice short entry opportunity in CL this morning at 8:11am EST. Entering at the EMA took little to no heat and moved from 82.35 to an intraday low (so far) of 80.25 in about an hour.

 

2011-09-22_cl.png

 

That is a serious, money-making trade JMC. Obviously not going to catch it all, but wow, nice trade. That's part of the risk-reward that your setup seems to provide. You can enter w/ a 10-20 tick stop roughly, and turn that into as much as 200 ticks.

 

Very nice.

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That is a serious, money-making trade JMC. Obviously not going to catch it all, but wow, nice trade. That's part of the risk-reward that your setup seems to provide. You can enter w/ a 10-20 tick stop roughly, and turn that into as much as 200 ticks.

 

Very nice.

 

Thanks Brownsfan. That was a monster move and I agree with your comments. I've found the edge in this setup is getting into low risk/high reward trades that are based on typical price action. You hear so much about needing a good risk reward profile in trading. But it is practically useless unless it has some basis in reality, i.e. how the market normally behaves.

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Thks ake for the chart. Josh your trades on Cl are of big help. I hesitate to trade CL cuz of volatlity in it and spikes ..but I want to try it on ES and possibly on TF. Do you watch other time frame charts to see the big picture (context as some one pointed out in one fo the posts) ... say 5m or 15m to see the trend OR simple the setup on 1m. Do you trade anything else beside CL?

 

I like the simplicity of the setup ..no indicators just the retest of the price to this MA.

 

 

Thank you all for the charts.

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I checked out a couple days worth of the 1 min NQ with a 100 ema and it looked pretty ugly IMO. But no one has posted the last couple days so maybe it was just a rough couple of days for this method. How have the last few days been with ES and CL for you guys watching those markets?

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I'm a little annoyed BB. You and BF are giving away my trading method.

 

FWIW I got the 21 ema (and never forget the mystically effective 34 ema) from an old guy who got it from another guy who'd been trading the ema zone since Linda BR and John C were just twinkles in their parents eyes.

 

You mean GB007.

 

:)

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I am curious that JMC and others have posted charts for this setup on 1m timeframe ...see the previous posts ...However, it seems that on 5m chart one must have some logical stop as it will be wider than on a 1m chart? Is that a fair statement? Looking back on the 5m chart posted

I know JMC and others keep a tight stop. Looking back on the 5m chart ...the Shorts on the chart worked looking back on the left side of the chart ...

 

Pl let us know what stop are you using if any and how did you arrive at that stop.

 

Thank you for posting the chart.

 

 

Pat

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I was stopped out last night (-13). Re the size of the stop I used 13 ticks. I like as small a stop as possible so that I can use more size. Please note that the chart I posted showed a 5 min chart but I took the trade on a 1 min TF.

 

It is mon morning and I am looking to go short on 6E. Just went short at 1.3782

5aa710adaba2d_6E12-11(1Min)10_17_2011.jpg.b08faf67405a572b211417cfb4047f8f.jpg

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How is everyones ema trading going? Trading the 5 minute ES using the EMA has been difficult to find any consistency.

 

can you post some examples (charts) where you found inconsistency?

 

capturing inconsistency is the 1st step to recognizing the consistent pattern.

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I use a shorter SMA10 and a longer SMA30 to determine an area where I may want to make an entry but only if price action confirms it. So if looking for a long setup wait until you get a strong bullish bar and buy 1 tick over the high of it if it is small enough to place a low risk stop below. If it's big but strong, put a fib on it and buy aat the mid point. In either event, I use a min 6 tick stop and a 12 tick target which for me, has ben achieved over 60% of the time prior to my stop being hit.

 

These type of setups work well when the market is trending. It's up to you to determine when that is. You can use market internals, or look at higher highs and higher lows being made or whatever works for you.

 

I also watch the 15min chart to make sure it is not in disagreement with the 5, and sometimes get an excellent similar setup on the 15min which goes farther than 12 ticks .

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can you post some examples (charts) where you found inconsistency?

 

capturing inconsistency is the 1st step to recognizing the consistent pattern.

 

I will post some examples later this evening. But i think my problem is i try to trade the ES pit session so my chart displays candles from the open till close and nothing else. However i also have a 24hr chart open as well. Now the ema on both charts can be in completely different places. I get confused to which one i should be placing trades on.

 

For example today the market gapped up, therefore the ema spent 3 hours catching up to price. Therefore i placed a two trades off the 24hr ema and both failed.

 

Has anyone looked at this and have any advice. Which one to use and what do you do when the market gaps up?

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I will post some examples later this evening. But i think my problem is i try to trade the ES pit session so my chart displays candles from the open till close and nothing else. However i also have a 24hr chart open as well. Now the ema on both charts can be in completely different places. I get confused to which one i should be placing trades on.

 

For example today the market gapped up, therefore the ema spent 3 hours catching up to price. Therefore i placed a two trades off the 24hr ema and both failed.

 

Has anyone looked at this and have any advice. Which one to use and what do you do when the market gaps up?

 

2 basic rules to profitable trading:

 

1. don't argue with the market...

 

2. don't confuse yourself.

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For example today the market gapped up, therefore the ema spent 3 hours catching up to price. Therefore i placed a two trades off the 24hr ema and both failed.

 

 

 

You needed to enter at 10:15 after the market showed strength on the UpBar You're a buyer at 1231 and you got 38.50 out of it.

 

What do you consider a failure?

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You needed to enter at 10:15 after the market showed strength on the UpBar You're a buyer at 1231 and you got 38.50 out of it.

 

What do you consider a failure?

 

I waited for the market to move back above the ema, pullback and hold. Entered long after the green hammer and then was stopped out 2 candles by the red one. Then entered long again after the move up to 38 off the ema. Which in hindsight was very poor but i think i was annoyed by the fact i was stopped out on the first trade.

Setup.png.fee24885b91fac23b3d6a486ef4cbaef.png

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I waited for the market to move back above the ema, pullback and hold. Entered long after the green hammer and then was stopped out 2 candles by the red one. Then entered long again after the move up to 38 off the ema. Which in hindsight was very poor but i think i was annoyed by the fact i was stopped out on the first trade.

 

you are easily annoyed?

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I waited for the market to move back above the ema, pullback and hold. Entered long after the green hammer and then was stopped out 2 candles by the red one. Then entered long again after the move up to 38 off the ema. Which in hindsight was very poor but i think i was annoyed by the fact i was stopped out on the first trade.

 

In my experience, you need to wait for a green candle of strong sign of buying which crosses your ema then place (quickly) a buy stop 1 tick in front of it. If the candle is too big (too much risk) then wait for a pullback and buy it around the mid candle point.

 

Also, I see from your chart that you are entering after the ema has flattened out which is not the best choice in my experience. You want the EMA sloping in your direction.

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Hi everyone,

 

i am using EMA 21 in trading and found this thread. I think peoples charts and their thougth process is what helps most. I am quite sad that it doesnt continue anymore, because not only novice traders can learn from this.

 

So if anybody is trading with EMA and is watching this thread i would like to get this thread going once more:)

 

Also you dont have to post only winning trades, because from loosing trades we can learn even more. Thought process about the situation helps a lot too. Why you entered, why you didnt enter etc. When you see right side of chart, it is easy to say: here is a nice entry point, but in real time its different story.

 

So one more time, if someone wants to discuss this system by posting charts and explain his thought process I would be glad:)

 

So I will start with a few trades I did on friday. Its 5 min chart on YM, blue line is EMA 21.

5aa710c450eb0_Beznzvu.thumb.JPG.71cc81cee281221d52b2c6e1869bfcf7.JPG

5aa710c45d806_Beznzvu2.thumb.JPG.15170087770ea8ded44a5a2f8c5c8042.JPG

5aa710c463d1d_Beznzvu3.thumb.JPG.c1e7fda52d7be2a65d07de5e2c5fc1e7.JPG

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