Jigsaw

Just in reference to the poster above me, his comments are Highlighted I've noticed that waiting for a "bounce" off the 21 in trending conditions does give a higher probability trade on certain conditions. Really ? Can you please expound on what you think is causing this ? Also what timeframe is this ? The danger I've found in the backtesting/forward testing that I have done, is that the winners with hindsight are so easy to spot it gives a false sense of success rate. Everybody can see that lovely trend bouncing off that 20/21 MA a mile off. But there are plenty of hidden losers. Agree with this. On closer inspection I personally have found it very difficult to guage a correct stoploss for such bounce trades on entry. Agree with this too . . I always try and put stops where price cant get them. These events maybe too rare occasions for sufficient trading oppotunities though. In my opinion this is tantamount to restricting your trading to the coincidental times that price retraces to an MA which at the end of the day is a lagging indicator. I hope someone proves me wrong and finds something sufficiently profitable in this and has the patience for it! Yes indeed MA's are lagging, however I use them as floating support and resistance on higher timeframes. I like to get a confluence of factors working in my favour before taking any trades. . . Enjoyed reading your post.

Hey guys, Im new to this site. Looking into other markets. Have traded forex for just over a year, @ Brownsfan the 5Min charts in forex will WRECK you. I know from experience lol . Considering the Market is open 5 days a week 24hours a day its actually tormenting if you have a 5minute strategy. Sure you get more profit but eventually the extra profit was not worth the time in my opinion. The thing I also find with your idea is that the 5min 20 ema is not helping me out in terms of . . . Generating order flow in the direction I want it to go in. If I was using an ema I would use something like . . I have had nothing but success with the 1HR 62 ema . . On all timeframes above 1HR particularly on GBP/USD One Hour . . If I was trading the 5Min what I would do is express the 1Hour 62 ema as a 5minute ema . . 1HR 62ema becomes the 5Min 744 ema. If anyone is curious backtest it on GBP/USD for a while and see how often it holds and generates nice candle patterns off of it. You would have less trades as well, with a higher probability of winning (In my opinion) Also try putting up all round numbers on your 5Min charts, so if you are trading 5Min put up all .1000 .1500 .x100 and .xx50 levels, and just look at how price reacts . . . I always try my best to intraday trade AWAY from the big round numbers instead of into them, a better chance of protecting your stop loss and of getting a good reaction in terms of legitimate candlesticks on the 5min. It's just how order flow builds up around round number in my experience. . . Disclaimer : I am by no means a forex expert or anything, nor am I claiming to be. But this is an interesting forum and an interesting discussion so I just thought I would chime in Trade well everyone.