I found this indicator a while back and starting messing around with it, and it appears to be very profitable. I was hoping that an EA could be programmed (I believe it would be relatively easy for a good programmer).
This indicator combines and EMA cross with RSI and there seems to be some merit here. When the proper conditions have been met, and arrow will point up for long and an arrow pointing down for a short (Enter at COB).
In order to make it it a trading system, I attach the 110 and 100 ema to the chart and use it as a trailing stop. If price retraces to that point it will close out. Sometimes it will break you even or you will have a very small loss (10-15 pips for example), but often times it will catch a big move and even when it retraces you will get alot of pips (depending on the timeframe - 1000-2000 on daily charts, all the way down to the M5 charts - 20-100 pips).
There is no TP as the trailing stop will take you out of the trade. If you are comfortable with a certain R:R then you can take profit at that point. Many times you will keep more profit that way, but you will miss the HUGE moves if you do it that way.
SL can be at the previous swing low, Or, A maximum you are willing to risk. For instance, on the M5 TF my max stop is 30 pips.
Let me know what you guys think, and if you have any suggestions to improve. Also, being such a simple mechanical system, I think and EA would be great to help out in catching the moves (I like to trade the smaller TF). If anyone can help with this, that would be great. If I need to clarify more, just ask!
P.S. Settings for the indicator from top to bottom 100, 110, 50
This indicator combines and EMA cross with RSI and there seems to be some merit here. When the proper conditions have been met, and arrow will point up for long and an arrow pointing down for a short (Enter at COB).
In order to make it it a trading system, I attach the 110 and 100 ema to the chart and use it as a trailing stop. If price retraces to that point it will close out. Sometimes it will break you even or you will have a very small loss (10-15 pips for example), but often times it will catch a big move and even when it retraces you will get alot of pips (depending on the timeframe - 1000-2000 on daily charts, all the way down to the M5 charts - 20-100 pips).
There is no TP as the trailing stop will take you out of the trade. If you are comfortable with a certain R:R then you can take profit at that point. Many times you will keep more profit that way, but you will miss the HUGE moves if you do it that way.
SL can be at the previous swing low, Or, A maximum you are willing to risk. For instance, on the M5 TF my max stop is 30 pips.
Let me know what you guys think, and if you have any suggestions to improve. Also, being such a simple mechanical system, I think and EA would be great to help out in catching the moves (I like to trade the smaller TF). If anyone can help with this, that would be great. If I need to clarify more, just ask!
P.S. Settings for the indicator from top to bottom 100, 110, 50
Attached File(s)
EMA_Cross_RSI_Trend_Spotter.mq4
5 KB
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4,635 downloads