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Hi all,
As my first contribution to this forum I will provide my rather successful Technical Analysis roadmap strategy. Many experienced Traders will recognize these techniques. I've pieced together many of the techniques I refined over years to create a roadmap to very successful trades.
Yes, I coined the title as the name of my strategy. Thought it would be a fun name.
As any experienced Forex Trader will know; because of the extensiveness of this road map strategy it reduces the amount of trades possible in short periods of time. I believe this will help Beginners advance to intermediate.
Also this works great for cryptocurrency trading!
That said, here you go:
Chart Setup
---------------
Chart - 5 minute period as primary.
12 Period EMA = Red
26 Period EMA = Red
9 Period EMA = Blue
100 Period EMA = Green
NOTE: The periods can change. If you prefer to trade longer periods this strategy works fine but you need to use the 2 periods shorter than your main trading period for signal support. Example; main trading of hourly period, you would use the 30min. & the 15min to assist in entering the trade. I'll be using the 5min. period for main trading, and 3min, & 1min. for support to share my strategy here.
MACD Indicator
----------------
MACD Line - FastLength = 12 EMA & SlowLength = 26 EMA
Signal Line = 9 EMA
Histogram = MACD Line - Signal Line
Aroon
----------------
Set to 24 (If chart insists on 25 then just be less likely to use the Aroon without other indicators.)
I prefer Arron Up as Green & Aroon Down as Red if colors are allowed.
Optional RSI
-----------------
65%,35%
Line Color: Blue
Entrance Signal Roadmap: (Entrance signal for trading on the 5min. period chart LONG position)
------------------------------------
1 - 100 EMA is trending upward.
2 - Use 1 min. period as indicator - The 1 min. chart shows trend towards change. This is NOT the trigger! Look for the 1minute chart MACD Line crossing above Signal Line.
3 - On the 3 min. Chart look for 9 EMA (blue) crossing 12 & 26 EMAs (blue crossing up over 2 red). May happen simultaneously when the MACD Line crosses up over the Signal Line on the MACD.
4 - Use 3 min. period as possible trigger to buy on MACD - The 3 min. chart shows when to trigger an early buy. The 5 min. MACD chart shows the MACD Line moving up towards the Histogram after crossing up over the Signal Line while under the Histogram.
4a - If you miss the 3 min. MACD signal then all is not lost. - Use the 5min. Chart looking for a cross of the 9 EMA up over the 12 & 26 EMAs. After they cross on the chart you should see the MACD line cross up over the Histogram… It is ok if both these signals happen at the same time. Enter here as the last possible signal to enter the trade. If on the 1min. chart the MACD Line is crossing down over Histogram from above abort the trade.
Optional RSI Safety Signal - If using the RSI option as a safety then look for an overbought signal to abort trade. The overbought signal is the line crossing up or over the 65% marker. If underbought signal exists (line crossing under the 35% marker) the trade is very good!
5 - Aroon - If the Aroon Up cross happens at the same time as 4 or later than all is good. In fact the farther the Aroon Up cross occurs after the signal 4 then the better the trade. If Aroon Up crosses over Aroon Down (green up over red) more than 2 periods on the 3min. chart before the MACD cross in signal 4 then abort trade.
6 - Aroon - If the Aroon Up cross happens at the same time as 4a or later than all is good. In fact the farther the Aroon Up cross occurs after the 4a buy signal then the better the trade. If Aroon Up crosses over Aroon Down (green up over red) more than 1 period on the 5min. Chart before the MACD cross in signal 4a then abort trade.
Congrats, you are in the position!
While in position:
-------------------------------
When MACD Line & Signal Line on MACD are wide from each other means strong momentum. When they move closer to one another the momentum slows. Slowing momentum usually signals the trend heading to the sell signal.
**Create TRAILING STOP to your comfort level as soon as minimum gain is realized!!** or a STOP order slightly above your buy-in.
Signals to Sell in Order: (if you want to manually exit position without stop order or trailing stop)
--------------------------
1 - Sell as soon as you see upside down chevrons in the Chart EMA's!! If no chevrons, skip to signal 2 below. Chevrons look like sharp pointed arrow tips pointing down. These signal fast spikes to a bearish attitude.
2 - Find Aroon sell signal (red crosses above green). Great to sell here. MACD may cross below zero 1st, wait for Aroon.
3 - If 9 EMA crosses below both 12 & 26 EMAs then this can be considered a good sell signal. It can cause you to exit position prematurely and lose profits.
4 - MACD Line crosses down over Histogram (blue crosses below zero). Must sell here if you did not at signal 1 or 2 or 3!
I hope this helps some of you. Feel free to ask me questions. I'll post more strategies soon.
As my first contribution to this forum I will provide my rather successful Technical Analysis roadmap strategy. Many experienced Traders will recognize these techniques. I've pieced together many of the techniques I refined over years to create a roadmap to very successful trades.
Yes, I coined the title as the name of my strategy. Thought it would be a fun name.
As any experienced Forex Trader will know; because of the extensiveness of this road map strategy it reduces the amount of trades possible in short periods of time. I believe this will help Beginners advance to intermediate.
Also this works great for cryptocurrency trading!
That said, here you go:
Chart Setup
---------------
Chart - 5 minute period as primary.
12 Period EMA = Red
26 Period EMA = Red
9 Period EMA = Blue
100 Period EMA = Green
NOTE: The periods can change. If you prefer to trade longer periods this strategy works fine but you need to use the 2 periods shorter than your main trading period for signal support. Example; main trading of hourly period, you would use the 30min. & the 15min to assist in entering the trade. I'll be using the 5min. period for main trading, and 3min, & 1min. for support to share my strategy here.
MACD Indicator
----------------
MACD Line - FastLength = 12 EMA & SlowLength = 26 EMA
Signal Line = 9 EMA
Histogram = MACD Line - Signal Line
Aroon
----------------
Set to 24 (If chart insists on 25 then just be less likely to use the Aroon without other indicators.)
I prefer Arron Up as Green & Aroon Down as Red if colors are allowed.
Optional RSI
-----------------
65%,35%
Line Color: Blue
Entrance Signal Roadmap: (Entrance signal for trading on the 5min. period chart LONG position)
------------------------------------
1 - 100 EMA is trending upward.
2 - Use 1 min. period as indicator - The 1 min. chart shows trend towards change. This is NOT the trigger! Look for the 1minute chart MACD Line crossing above Signal Line.
3 - On the 3 min. Chart look for 9 EMA (blue) crossing 12 & 26 EMAs (blue crossing up over 2 red). May happen simultaneously when the MACD Line crosses up over the Signal Line on the MACD.
4 - Use 3 min. period as possible trigger to buy on MACD - The 3 min. chart shows when to trigger an early buy. The 5 min. MACD chart shows the MACD Line moving up towards the Histogram after crossing up over the Signal Line while under the Histogram.
4a - If you miss the 3 min. MACD signal then all is not lost. - Use the 5min. Chart looking for a cross of the 9 EMA up over the 12 & 26 EMAs. After they cross on the chart you should see the MACD line cross up over the Histogram… It is ok if both these signals happen at the same time. Enter here as the last possible signal to enter the trade. If on the 1min. chart the MACD Line is crossing down over Histogram from above abort the trade.
Optional RSI Safety Signal - If using the RSI option as a safety then look for an overbought signal to abort trade. The overbought signal is the line crossing up or over the 65% marker. If underbought signal exists (line crossing under the 35% marker) the trade is very good!
5 - Aroon - If the Aroon Up cross happens at the same time as 4 or later than all is good. In fact the farther the Aroon Up cross occurs after the signal 4 then the better the trade. If Aroon Up crosses over Aroon Down (green up over red) more than 2 periods on the 3min. chart before the MACD cross in signal 4 then abort trade.
6 - Aroon - If the Aroon Up cross happens at the same time as 4a or later than all is good. In fact the farther the Aroon Up cross occurs after the 4a buy signal then the better the trade. If Aroon Up crosses over Aroon Down (green up over red) more than 1 period on the 5min. Chart before the MACD cross in signal 4a then abort trade.
Congrats, you are in the position!
While in position:
-------------------------------
When MACD Line & Signal Line on MACD are wide from each other means strong momentum. When they move closer to one another the momentum slows. Slowing momentum usually signals the trend heading to the sell signal.
**Create TRAILING STOP to your comfort level as soon as minimum gain is realized!!** or a STOP order slightly above your buy-in.
Signals to Sell in Order: (if you want to manually exit position without stop order or trailing stop)
--------------------------
1 - Sell as soon as you see upside down chevrons in the Chart EMA's!! If no chevrons, skip to signal 2 below. Chevrons look like sharp pointed arrow tips pointing down. These signal fast spikes to a bearish attitude.
2 - Find Aroon sell signal (red crosses above green). Great to sell here. MACD may cross below zero 1st, wait for Aroon.
3 - If 9 EMA crosses below both 12 & 26 EMAs then this can be considered a good sell signal. It can cause you to exit position prematurely and lose profits.
4 - MACD Line crosses down over Histogram (blue crosses below zero). Must sell here if you did not at signal 1 or 2 or 3!
I hope this helps some of you. Feel free to ask me questions. I'll post more strategies soon.
