It may be premature, but I decided late last week to try out the EMA 100 strategy on stocks.
I'll keep you posted on how that goes.
Tuesday, May 8, 2012
Watching the S&P
I'm no expert. Clearly! But I noticed these past few months of pretend trading in the FOREX market, that the dollar actually gains strength when the S&P 500 drops. (It's not suppose to be the case, though. Read here for more information.)
My charts lead me to believe the S&P may be in for another pullback. (There's a clear RSI divergence.)
I'm banking on that happening, which is really the only reason I'm holding the EUR/USD short.
Keep pushing on that lower Bollinger Band buddy!
My charts lead me to believe the S&P may be in for another pullback. (There's a clear RSI divergence.)
I'm banking on that happening, which is really the only reason I'm holding the EUR/USD short.
Keep pushing on that lower Bollinger Band buddy!
Holding ... On
Sold a new batch of the EUR/USD on Sunday--when it opened up below the lower Bollinger Band. I was so sure it was going to go down, but it rallied up to the 1.3050 level before coming back down below 1.3000, where it clearly belongs. I was too afraid to see how much in the hole I was, but finally got the nerve to look this afternoon. I'm $2,000 in the hole on this particular trade, but I feel confident it will continue heading down.
The expert analysts at DailyFX.com said this rebound was a good time to enter into a strong sell position.
The expert analysts at DailyFX.com said this rebound was a good time to enter into a strong sell position.
Wednesday, May 2, 2012
EMA Breakout Strategy
Here's a copy of the EMA Breakout Strategy I'm currently using:
Sooner or later all Forex traders begin experimenting with different EMA settings.
Quite often very interesting combination can be spotted. Here is one Simple Forex system based on 50 EMA indicator.
Any currency pair.
Time frame: 90 minute or 3 hour chart, 4 hour chart
Indicator: 50 EMA.
Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one.
Exit: not set.
Stop loss order: 15 pips below 50 EMA.
This strategy and others can be found on forex-strategies-revealed.com.
I didn't realize it until now, but the author of this strategy, Edward Revy, is also the website creator. This newbie is impressed!!
Sooner or later all Forex traders begin experimenting with different EMA settings.
Quite often very interesting combination can be spotted. Here is one Simple Forex system based on 50 EMA indicator.
Any currency pair.
Time frame: 90 minute or 3 hour chart, 4 hour chart
Indicator: 50 EMA.
Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one.
Exit: not set.
Stop loss order: 15 pips below 50 EMA.
This strategy and others can be found on forex-strategies-revealed.com.
I didn't realize it until now, but the author of this strategy, Edward Revy, is also the website creator. This newbie is impressed!!
The EMA 100 and Me!
According to my new strategy, I need to wait for the price to reach 5 pips below the previous candle's low before putting in a sell order (or going short).
I switched to a daily time scale on DailyFx.com and altered the EMA to a period of 100 instead of 50. It was recommended by the author of the strategy to increase the period value when increasing the time scale. (Good thing I read all the comments following his original posting!)
One of these days I'll figure out what EMA periods I'll need for all the different time scales. That way I can avoid this waiting!!
One of these days I'll figure out what EMA periods I'll need for all the different time scales. That way I can avoid this waiting!!
Tuesday, May 1, 2012
Regroup Part Deux
Time to find a new strategy!
Enter the wonderful website that is Forex-Strategies-Revealed.com. This website is user-generated and allows newbie traders like me the ability to explore different FOREX trading strategies and learn new trading techniques.
I was drawn to the simplicity of one user's strategy--involving only the Estimated Moving Average.
(You might recall that my old strategy had three indicators.)
Check out what Mr. Edward Revy contributed!
I applied his strategy to my loser $97,000 account and posted a sweet $900 gain. I'm working my way back to even!!
Enter the wonderful website that is Forex-Strategies-Revealed.com. This website is user-generated and allows newbie traders like me the ability to explore different FOREX trading strategies and learn new trading techniques.
I was drawn to the simplicity of one user's strategy--involving only the Estimated Moving Average.
(You might recall that my old strategy had three indicators.)
Check out what Mr. Edward Revy contributed!
I applied his strategy to my loser $97,000 account and posted a sweet $900 gain. I'm working my way back to even!!
Where Have I Been?
Yes, it's been awhile. A good friend of mine from college always jokes that I begin my emails to her by saying "I'm sorry for not writing sooner. Things have been crazy."
The truth is, yes, things have been crazy. In the past month, I moved apartments, mostly by myself, but with a little help from my parents. I began searching and applying for jobs. I even had my first interview in four years. (If you're wondering how it went, please don't ask.)
But have things been so crazy that I didn't have time to update my blog? No.
The reason I haven't updated it is because I'm a little disappointed and ashamed in my results so far with the Oanda practice account.
Right now the balance reads "$97,010.87." When I went as low as $96,000, I thought I was the biggest loser on the face of the planet.
I can get a bit dramatic sometimes ...
I started thinking about why this strategy was leaving me so insecure about my abilities to successfully trade FOREX.
Despite years of learning about the stock market and technical indicators, in many ways I still feel like a beginner. Under what circumstances then did I think it'd be a grand idea to create my own strategy and stick to it--even with fake money? ... Not a clue.
I had two options: throw in the towel or regroup.
There is a common theme that runs through most success stories: a setback and determination to keep going forward.
That's what I've decided to do.
The truth is, yes, things have been crazy. In the past month, I moved apartments, mostly by myself, but with a little help from my parents. I began searching and applying for jobs. I even had my first interview in four years. (If you're wondering how it went, please don't ask.)
But have things been so crazy that I didn't have time to update my blog? No.
The reason I haven't updated it is because I'm a little disappointed and ashamed in my results so far with the Oanda practice account.
Right now the balance reads "$97,010.87." When I went as low as $96,000, I thought I was the biggest loser on the face of the planet.
I can get a bit dramatic sometimes ...
I started thinking about why this strategy was leaving me so insecure about my abilities to successfully trade FOREX.
Despite years of learning about the stock market and technical indicators, in many ways I still feel like a beginner. Under what circumstances then did I think it'd be a grand idea to create my own strategy and stick to it--even with fake money? ... Not a clue.
I had two options: throw in the towel or regroup.
There is a common theme that runs through most success stories: a setback and determination to keep going forward.
That's what I've decided to do.
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