Simple Trading Strategy - 30min Timeframe
A friend asked me to create a setup that he could have on his phone and he could get alerts on potential trades. So this is what I came up with a slight modification of a system I have on my desktop. 5/21 Cross with a couple Friends!
Setup:
1) 30min Chart Only
2) 5EMA and 21 EMA
2a) I added a ribbon to make it easier to see on a phone. 7,9,11,13,15,17,19 EMA's
3) MACD - Set at 3/26/1
4) RSI set to 10
Sell Entry Rules:
1) 5 must cross below 21 on a bar close
2) The Price Bar must close below the the 21EMA
3) MACD must be less 0
4) RSI needs to be greater than 30 (I like it better when it is greater than 35)
5) GO SHORT on the open of the very next bar where all conditions are met.
6) Set a TAKE PROFIT for the first 100pips
7) Put your initial stop above the must recent trade high bar. Once it moves in your direction trail your stop according to your money management goals.
8) Close Trade if a BUY SETUP is initiated.
BUY Entry - Reverse of Sell.
Observations - you very seldom will get more than 100-110pips trades seem to average in the 45-60 pips. The 30min timeframe gives you good moves but as with all trend systems choppy sideways trade can cause churn.
Aggressive Mode is to take every trade. Conservative mode is to add a 200 SMA to the chart and when the 5EMA and 21EMA are below only take the SELLS and vis-a-vis only take the BUYS. As the 5/21/200 converge wait for the next trend confirmation. This Conservative approach follows general Swing Trading Theory with Timeframe Trend.
Again a simple approach for those that may only have a few moments a day to do any homework. If you add alerts in Trading View you can receive a text message when the 5EMA crosses the 21EMA - this will help you from always checking your phone. Note: the alert will come based on current price remember the rules that the action takes place at the close of the bar.
If anyone has other simple setups I would love to see them.
Best Regards,
Konrad.
Setup:
1) 30min Chart Only
2) 5EMA and 21 EMA
2a) I added a ribbon to make it easier to see on a phone. 7,9,11,13,15,17,19 EMA's
3) MACD - Set at 3/26/1
4) RSI set to 10
Sell Entry Rules:
1) 5 must cross below 21 on a bar close
2) The Price Bar must close below the the 21EMA
3) MACD must be less 0
4) RSI needs to be greater than 30 (I like it better when it is greater than 35)
5) GO SHORT on the open of the very next bar where all conditions are met.
6) Set a TAKE PROFIT for the first 100pips
7) Put your initial stop above the must recent trade high bar. Once it moves in your direction trail your stop according to your money management goals.
8) Close Trade if a BUY SETUP is initiated.
BUY Entry - Reverse of Sell.
Observations - you very seldom will get more than 100-110pips trades seem to average in the 45-60 pips. The 30min timeframe gives you good moves but as with all trend systems choppy sideways trade can cause churn.
Aggressive Mode is to take every trade. Conservative mode is to add a 200 SMA to the chart and when the 5EMA and 21EMA are below only take the SELLS and vis-a-vis only take the BUYS. As the 5/21/200 converge wait for the next trend confirmation. This Conservative approach follows general Swing Trading Theory with Timeframe Trend.
Again a simple approach for those that may only have a few moments a day to do any homework. If you add alerts in Trading View you can receive a text message when the 5EMA crosses the 21EMA - this will help you from always checking your phone. Note: the alert will come based on current price remember the rules that the action takes place at the close of the bar.
If anyone has other simple setups I would love to see them.
Best Regards,
Konrad.
Comment:
Just a follow up to this strategy. the trade has fallen short of the first 100pips at 99, but it is a good example of the BUY entry. Stops could of easily been moved up along the price path. This would of fallen under the category of an Aggressive BUY, because the 5EMA and 21EMA were below the 200SMA. Happy Trading.
