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Originally Posted by rollingstone
Heres an example of some added info we can use just to give more confidence, as I say I do not want to complicate the system and make us debate if to take a cross or not, but any little extra signs we can have the better.
Obviously we don't want to say we have to have this and that before taking the trade, the 20 EMA does a good job if we can get round the fact that it will give a signal sometimes, then the market will retrace and the signal will be gone.
So, when the final crossing of the KS line happened on Friday on the GBP we had a couple of extra little clues, 5 min chart below shows nice CCI divergence with a small double top coming back in from outside the bollinger band, and when the 60 minute cross happens the 5 min price is already well below the KS line.
As I say these are just extra clues not something to rely on.
The same can be seen on the 30 minute chart as well.
5 Minute chart
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Hi RollingStone,
I toatally agree with you, the more clues, the better. Divergence always works great, but in my tests, I am trying to use just these two parameters and some basic common sense. Although, I will be using more indicators when I go live, but right now I'm trying to develop a system for dumb traders like me
(no offense to anybody). But yeah I will be looking at other indicators too constantly. I do trade using MACD, pivots and trendlines amongst other things. Just trying to figure out something really very simple though. But, keep your suggestions rolling, this one was great and I will try using CCI
, never used it before.
Rockin' Tradin'
-Akash