First, im fairly new to the game and i would like to ask a question concerning and entry and exit strategy, for discussion sake, GPB/USD.
Being that im fairly new, and i have been reading about Sidus's method and i would like to see if my justification to enter a trade is reliable or not.
The last 2 weeks or so the trend for GPB/USD has been bullish. With that in mind i have been studying the 18 and 34 EMA's on a 1 hour chart. In my conclusion i found that each and every time the price dropped below the EMA's it had eventually rose above them and ultimatly increased in price. This is from just looking at the history. (i think this might be where the problem lies)
It would make sence to me that all i would have to do is buy below the EMA's and then wait until the price rose above the EMA's and take my profit(1 hour chart).
Just to clearify the main reason i feel this is a sure bet is because the trend for the last 2 weeks or so was bullish. So even if the price declined, it would within time incline turning what would of been a short term trade into a long term trade.
I know i should be testing this with a demo to figure out what good stop losses would be, I wanted to see what the amazing people at FF think to give me some insite before i start to test it or maybe someone to plainly tel l me im wasting my time, as well as theirs for them having read this.
Would the problem be that because the EMA's history, of what i have been looking at, also incorporates the future prices? Its hard for me to imagine how much that would efect this strategy.
Also, does anyone know any charting software that supports forward testing? this would really help accellerate me learning all this good stuff that Forex has instore for me.
I appreciate any input. I will be checking in later tonight!
BTW my first few posts and definatly not my last posts here on FF. I hope you guys enjoy reading it as much as i enjoyed typing it!
Being that im fairly new, and i have been reading about Sidus's method and i would like to see if my justification to enter a trade is reliable or not.
The last 2 weeks or so the trend for GPB/USD has been bullish. With that in mind i have been studying the 18 and 34 EMA's on a 1 hour chart. In my conclusion i found that each and every time the price dropped below the EMA's it had eventually rose above them and ultimatly increased in price. This is from just looking at the history. (i think this might be where the problem lies)
It would make sence to me that all i would have to do is buy below the EMA's and then wait until the price rose above the EMA's and take my profit(1 hour chart).
Just to clearify the main reason i feel this is a sure bet is because the trend for the last 2 weeks or so was bullish. So even if the price declined, it would within time incline turning what would of been a short term trade into a long term trade.
I know i should be testing this with a demo to figure out what good stop losses would be, I wanted to see what the amazing people at FF think to give me some insite before i start to test it or maybe someone to plainly tel l me im wasting my time, as well as theirs for them having read this.
Would the problem be that because the EMA's history, of what i have been looking at, also incorporates the future prices? Its hard for me to imagine how much that would efect this strategy.
Also, does anyone know any charting software that supports forward testing? this would really help accellerate me learning all this good stuff that Forex has instore for me.
I appreciate any input. I will be checking in later tonight!
BTW my first few posts and definatly not my last posts here on FF. I hope you guys enjoy reading it as much as i enjoyed typing it!