EMA (exponential moving average) & cycle system

New comment
 

EMA (exponential moving average) & cycle system

By Mohammadreza Neisi

http://fx13549045.blogfa.com

http://fxsignalhunter.blogfa.com

Introduction

this article compares special EMA (exponential moving average) with cycle relationship that really work in all time,all market and useful to take position with true stop loss and take profit. so let me know why EMA? Why cycle?

Moving averages & their specifications with compare

All traders know about these moving averages & their specifications that I explain them in brief with popular periods & application:

We know that large period has more lag but more powerful support or resistance,EMA has less lag than SMA & SMMA,LWMA less applicable in popular but it has non lag in compare to other one(I didn't see any source for this one).also they show trend direction, their cross are used as signal.

They are not good in trade area (no trend),above sentences are written in many trade books.

Look to this picture to understand lag & period of EMA, SMA,SMMA,LWMA

Note:

you must test & select your favor moving average in your favor time(M30,M15,H1,H4,,D1,W1) with your favor color & line that depends on your system & decision making & your eye.make your system simple not complicated.

Look to these 8 picture to select cross system.I prefer to select and use three cross such as (5,13,62) or (5,10,34).why three cross better than two cross?

You can find other cross system or make your cross system

Note:

this table result of survey of many indicators,software,books that I read & saw them.

use

cross

time

Popular period

Moving average types

Large period for M30,M15,H1(usually more than 21)

(9,18),(10,20),

,(6,12),..

H4,H1

D1,W1

5,8,10,13,21,34,50,.. (9,18),(10,20),(10,30)

1-SMA(simple moving average):

Large period for M30,M15,H1(usually more than 21)

(10,30),(13,34),

(13,21),(10,80),..

(5,13,62),(5,10,34)

M30,M15,H1,H4,,D1,W1

5,8,10,13,21,34,50,,80,100,150,200,...

(9,18),(10,20),

(10,30)

2- EMA (exponential moving average) :

With alligator indicator

5,8,13

With shift

All time

Popular H4,H1

D1

5,8,13

3-SMMA(smoothed moving average):

As non lag

Indicators such as T3,JMA,.. seems use LWMA

(5,13),(3,7)

H4,H1

D1

5,6,8,13

4-LWMA(linear weighted moving average):

My moving average:

I use EMA with these periods:50,100,200,400,800 that I changed it from carter indicator (13,21,50,100,200) .why?

As you see 50 to 200,100 to 400,200 to 800 have cycle relation 1 to 4 (this is cycle rule)

Also I add EMA 25 but SMA 13. I test this system for 1 year and I did not found any mistake with compare to other moving average. You can add larger period such as 1600, 3200 (dotted line in pivot picture) but maybe make you confuse or make my system too complicated.

Before above system I tested these system:

1: SMA (14) EMA(28,56,112,224,..) as cycle rule

2: SMA (13,21) EMA(56,89,144,233,..) as fibo number.

You can test 1 & 2 with my system & see the results.

Look to these picture to understand us of my system as follow:

How to use my system?

My rules:

1-look in standard time with cycle relation from D1 to M15 : D1,H4,H1,M15

M15 less view than H1,…

W1

D1

2- look & find larger EMA's :this can show you these items:

possible movement –support or resistance-cross-take profit(T/P) steps-stop loss(S/L)-trend direction-trade area

  • usually when price broke a moving average period goes to next moving average period & so .you can use it as broke signal,put your S/L behind large EMA ,set next EMA's as T/P's.

H4

H1

M15

  • larger EMA works as strong support or resistance, you can use it as broke signal or nonbroke signal(usuall method)

v if the gap between two EMA is too large,you can use my special pivot line as T/P's (usually my pivot lines match to my EMA) or draw some horizontal line from important top & bottom in D1,H4,H1

use pivot line as simple rule to understand possible market movement .if price goes below pivot lines take sell positions and if price goes above pivot lines take buy positions.

3-use other confirm tool such as fibo retracement,trend lines,fibo fann,…

4-my system works good if broke happen ,but it can not detect possible reversal point.it is good as a confirm to other method.you don't need to use more indicators.

My signal system in http://fx13549045.blogfa.com or http://fxsignalhunter.blogfa.com

For 6 month gained about 21000 pips from this system.

My special pivot lines available in www.mql4.com as new Fibonacci number by fx9045

I put some sample to understand my signal system.if you need my system indicator conact me.

I don't know my article new but hope to be usefull for all traders.

I will be happy to see your idea,I am ready to cooperate with any trade company or author for this porpose.

My next article is about market geometric.

My email: fx13549045@yahoo.com

New comment