MA Tunnel Crossover
Market Order opened at 1.3349
When the next Crossover of the yellow and blue line occurs.
(Chart done with FXCM)
On the hourly chart I use the 28EMA and the 18 EMA to determine the long term trend. Both form the red tunnel. The 5 LWMA (yellow) and the 12 LWMA (blue) show me when to enter a trade; they also help me to see the strength of the trend.
I only open a position, when the red tunnel is extremely narrow or crossed.
LONG: 5 LWMA and 12 LWMA cross the red tunnel upwards. If the 5 LWMA also crosses the 12 LWMA upwards, then the signal is ready to enter a trade. RSI >50.
SHORT: 5 LWMA and 12 LWMA cross the red tunnel downwards. If the 5 LWMA also crosses the 12 LWMA downwards, then the signal is ready to enter a trade. RSI<50.
My stop loss is at the previous low in case of a buy and at the previous high in case of a sell.
For each trade I risk LESS THAN ONE PERCENT. If the distance to the previous high or low is too much for you, then simply ignore this trade. There will come more opportunities.
I exit the trade when the 5 LWMA cross the 12 LWMA again. I also exit the trade in the evening. I don't have any trades running during the night.
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