I have been on vacation for 2 weeks (good time to get
away)
One thing that works for me is that I have an IRA account where
I use the DAILY 13 and 34 EMA crossovers (but not until after the
SLOW stockastic rises above 20)
I also have a Tax sheltered account where I use the same only 60
Minutes.
Then my trading account is the 5 Minute but each time I wait
until the EMA's cross over.
All of this is on the S & P (as Matt says it makes a larger
move)
I think this works for CLEAR buy and sell signals on the
indexes.
Matt and Steve, Could either of you provide a sample LINE chart
showing the EMA crossovers? I checked your list of available
charts and do not see it there.
I had a few E Mails on this so thought that I would clarify
here.
Try looking at the S & P. (SDS or SSO)
5 Minute charts (2 Days timeframe)
60 Minute charts (1 Month or 2 months timeframe)
Daily Charts (6 Months or a year timeframe)
You could backtest the 13/34 EMA crossovers as buy and sell
signals. I usually wait until AFTER the 20 cross up and 80
cross down of the 60/3 Slow Stockastics. (Saves some
whips) But even with a few whips, you should catch most of the
major moves. I use this mostly for the SDS and SSO now, but
was using it for QID and QLD before I joined Breakpoint Trades.
Another indicator that I use on this system is the ROC instead
of the RSI as it seems to be more accentuated and you can see the
divergence between the 3 Rd and the 5th wave on on each
of the different time frames more clearly.
Matt said that he would post a line chart of the 13/34 EMA
crossovers so maybe when he does, you can look at this for other
stocks or indexes. It may not work as well for
individual stocks as it does for the indexes.
I agree with most of the folks that recently posted that we all
need a break this weekend and to spend some time with children
being funny and laughing. (keeps things in perspective as to
what really matters in life) FinaM
finam and others, regarding the MA
system crossover, here's another EMA system crossover but using a 7
and 21 EMA (offset by two periods, which you can do in
stockcharts). It was sent to me by a member. I have not tested it
much, but posting it for FYI since finam posted his EMA system: The
only problem that I have with MA crossover systems is that they lag
considerably and appear to work well in trending environments but
not so well in choppy environments.
Here you go Matt..thanks for your site.
Regards
Is very simple
1: 2 moving averages a
7 day (O+H+L+C/4) exponential MA (blue line) and a 21 day
(O+H+L+C/4) exponential MA (red line).
2:
Bothoffset by 2 periods - yes we can debate this all day and all
night, but that's how it is set up.
3: The blue crosses the
red, next candle must confirm on closing (either red or green -
short/long) and then you enter.
4: The trick is to use
the INDEX itself (for example in Souht africa I use the TOP40 chart
(cash or spot if u like) to enter my positions on the relevant
future (right now the March ALSI contract). This is very important
and works across the board (London or Germany etc) and gives you
less whip than trading the future charts. This is key really it
is.
5: Sometimes you will
get a lot of uncertainty as to whether or not the candle has
confirmed, because the cross happens and (lets take short as an
example) and the next candle is green, at this point I apply a
lower low theory or actually just sit out when you have a really
sideways move.
6: I use a 5 min and 15
min system and I hope you can figure out why...is difficult to
explain, but BOTH must be used in unison with each other. Many
people have questioned this and it is hard to explain, but simply
put they complement each other and at times protect each other and
thus you.
7: In the excel sheet
above you will have EXACT crosses and confirmations as they
happened, whether or not I actually traded it, in other words a
religioulsy followed system and here lies the crux...emotion is a
funny thing and I have been doing this for many years and still it
remains that if I followed it to the T I would probably own Florida
by now. Bottom line is that a K.I.S.S. system really works.
ps: The ALSI is
currently at 27722 so to date you would have doubled the index. You
can work out the others for yourself...sufice to say...you could be
quite well off...)))
13 and 34 Crossover
Posted by finam on 11th of Jul 2008 at 02:25 pm
I have been on vacation for 2 weeks (good time to get away)
One thing that works for me is that I have an IRA account where I use the DAILY 13 and 34 EMA crossovers (but not until after the SLOW stockastic rises above 20)
I also have a Tax sheltered account where I use the same only 60 Minutes.
Then my trading account is the 5 Minute but each time I wait until the EMA's cross over.
All of this is on the S & P (as Matt says it makes a larger move)
I think this works for CLEAR buy and sell signals on the indexes.
Matt and Steve, Could either of you provide a sample LINE chart showing the EMA crossovers? I checked your list of available charts and do not see it there.
Thanks,
Delfina
EMA Crossovers
Posted by finam on 12th of Jul 2008 at 02:57 am
I had a few E Mails on this so thought that I would clarify here.
Try looking at the S & P. (SDS or SSO)
5 Minute charts (2 Days timeframe)
60 Minute charts (1 Month or 2 months timeframe)
Daily Charts (6 Months or a year timeframe)
You could backtest the 13/34 EMA crossovers as buy and sell signals. I usually wait until AFTER the 20 cross up and 80 cross down of the 60/3 Slow Stockastics. (Saves some whips) But even with a few whips, you should catch most of the major moves. I use this mostly for the SDS and SSO now, but was using it for QID and QLD before I joined Breakpoint Trades.
Another indicator that I use on this system is the ROC instead of the RSI as it seems to be more accentuated and you can see the divergence between the 3 Rd and the 5th wave on on each of the different time frames more clearly.
Matt said that he would post a line chart of the 13/34 EMA crossovers so maybe when he does, you can look at this for other stocks or indexes. It may not work as well for individual stocks as it does for the indexes.
I agree with most of the folks that recently posted that we all need a break this weekend and to spend some time with children being funny and laughing. (keeps things in perspective as to what really matters in life) FinaM
finam and others, regarding the
Posted by matt on 14th of Jul 2008 at 01:46 am
finam and others, regarding the MA system crossover, here's another EMA system crossover but using a 7 and 21 EMA (offset by two periods, which you can do in stockcharts). It was sent to me by a member. I have not tested it much, but posting it for FYI since finam posted his EMA system: The only problem that I have with MA crossover systems is that they lag considerably and appear to work well in trending environments but not so well in choppy environments.
Here you go Matt..thanks for your site.
Regards
Is very simple
1: 2 moving averages a 7 day (O+H+L+C/4) exponential MA (blue line) and a 21 day (O+H+L+C/4) exponential MA (red line).
2: Both offset by 2 periods - yes we can debate this all day and all night, but that's how it is set up.
3: The blue crosses the red, next candle must confirm on closing (either red or green - short/long) and then you enter.
4: The trick is to use the INDEX itself (for example in Souht africa I use the TOP40 chart (cash or spot if u like) to enter my positions on the relevant future (right now the March ALSI contract). This is very important and works across the board (London or Germany etc) and gives you less whip than trading the future charts. This is key really it is.
5: Sometimes you will get a lot of uncertainty as to whether or not the candle has confirmed, because the cross happens and (lets take short as an example) and the next candle is green, at this point I apply a lower low theory or actually just sit out when you have a really sideways move.
6: I use a 5 min and 15 min system and I hope you can figure out why...is difficult to explain, but BOTH must be used in unison with each other. Many people have questioned this and it is hard to explain, but simply put they complement each other and at times protect each other and thus you.
7: In the excel sheet above you will have EXACT crosses and confirmations as they happened, whether or not I actually traded it, in other words a religioulsy followed system and here lies the crux...emotion is a funny thing and I have been doing this for many years and still it remains that if I followed it to the T I would probably own Florida by now. Bottom line is that a K.I.S.S. system really works.
ps: The ALSI is currently at 27722 so to date you would have doubled the index. You can work out the others for yourself...sufice to say...you could be quite well off...)))
pps: LATEST CHARTS enclosed
Hope this helps.
I'll post it later today
Posted by matt on 11th of Jul 2008 at 02:36 pm
I'll post it later today when I have some time, thanks for sharing, this is why this BLOG is great