|
Power of 20ema
see also Holy Grail |
download template NQoos134 here
- The 20ema is the "gold standard", balance point", in any
timeframe.
- If you look at CCI14 or DMI14 they will show similar as 20ema. As price
crosses the 20ema, CCI crosses zero and DMI crosses itself.
- Put the 20ema on any time frame. Use it to identify
the immediate trend in that time frame. Wait for the pullback and a Lower
High for shorts or Higher Low for longs.
- PATIENCE..........."YOU ARE PAID TO
WAIT".
- Yes, I picked a good chart to illustrate this concept. On trend days its
makes trading look easy. When the market is not producing a trend day you may
need to be more active getting in or out or trades since price will close
above/below the 20ema more frequently.
- Additional concepts and/or indicators will help you filter when to go
long, short and exit trades. This will alter the effectiveness of the trading
method you develop.
- Money Management is most important. Proper Money Management will influence
effectiveness of the 20ema concept. You must have a good Money Management
method to control your profitable exits and also unprofitable exit losses.
Control your loses is the most effective method to insure you will always have
the opportunity to trade again.
The charts below show price bars closing above (green)
or below (red) the 20ema. You could also use
the rising or
falling of the 20ema, It will produce almost the exact result.
download template NQoos134 here |
miracles,
they are everywhere.............. 
