For me there is nothing worse than a messy chart. Sometimes I see some of my students charts and wonder how they can trade at all with the numerous arrows and indicators on their charts.
Trading can be as simple or difficult as we choose to make it and I realize that not every trading method suits everyone. In this article I have combined a number of indicators to confirm entries and still managed to keep the chart uncluttered.
I have used the following combination of indicators.
- Current Trend line Break
- Exponential Moving Average (Represented by the Red or Green Arrows) Setting 5/8
- RSI with a 14 setting and only enter the trade when the 50 Line is crossed, this indicator is represented by the orange and blue candles. (When the candles are orange the RSI has crossed the 50 line short. When the candles are blue it has crossed the 50 line long.
- Stochastic with a 14,3,3 setting with 90, 10, 40, 60 levels
- Momentum indicator with a 21 moving average cross. The momentum setting is 10 with zero level added.
- Laguerre filter line; with a gamma setting of 0.60, which is similar to a 21 exponential moving average.
The trade setup is simple, when price crosses above or below the Laguerre filter line we check to see if all the indicators are in sync.
For a long trade, price must open above the Laguerre filter line; The candles must turn blue representing the RSI Cross above the 50 line.
A green arrow must appear representing the EMA cross.
The Stochastic must cross up through the 40 line
The momentum line must cross up through the Zero line and the 21 moving average must have crossed up through the momentum line.
When all 6 are lined up we can enter the trade long.
For a short trade, price must open below the Laguerre filter line; The candles must turn orange representing the RSI Cross below the 50 line.
A red arrow must appear representing the EMA cross.
The Stochastic must cross up through the 40 line
The momentum line must cross down through the zero line and the 21 moving average must have crossed down through the momentum line.
When all 6 are lined up we can enter the trade short.
Obviously during quiet periods it can give false entries. I have used the system successfully during the Euro/London and US trading sessions.

The system creates a quick and easy visual representation of the current market situation in spite of all the indicators used. Obviously patience is a pre requisite for this system waiting for all the indicators to confirm.
Summary
- Wait for current trend line break
- Candles must change colour before entering in a new direction.
- EMA Arrow must appear.
- Candles must open above or below the laguerre filter line or 21 EMA
- Stochastic must cross (short below the 60 line or long above the 40 line. it should not be above the 90 or below the 10 levels when entering a trade as the market could already be overbought or oversold.
- Momentum must cross above the Zero line (long) below the zero line (short)
26 comments:
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勉強になります。ありがとう! Thank you!!
I'd be pleased if you exchange reciprocal link with me.
よろしくお願いします。
お互いがんばりましょう。
http://easy-happy-invest.blogspot.com/
この記事の中でリンクしています。
(2010/02/26)
Easy investment : OCO : One Cancel the Other
http://easy-happy-invest.blogspot.com/2010/02/oco-one-cancel-other.html
良かったらご覧になってください。
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This is a really great forex trading system and best of all it is free:
http://www.fxscalpingmethod.com/
GOOD........................................
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聰明的人喜歡猜心 雖然每次都猜對了卻失去了自己的心......................................................
感謝分享好的作品~~ .........................................
思想與理論,貴呼先於行動,但行動較思想或理論更高貴..................................................
舊書不厭百回讀,熟讀深思子自知。..................................................
認清問題就等於已經解決了一半的問題。.................................................................
有用的才華若不用,便如同日晷儀放在陰暗之中............................................................
留言是種美德-感謝分享..................................................................
Better say nothing than nothing to the purpose...................................................................
幸福不是一切,人還有責任。............................................................
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