Originally Posted by maria77

Hi guys,

I need two very simple EMA indicators that has been working very well for the backtesting. Although there're false signals but it is very minimal especially on 4-H and daily chart.

Ok here's how:

I've three EMAs shown on a chart; 4-EMA, 9-EMA and 18-EMA. This set of EMAs I've read it from a book found in the early 90s. It mentioned that this set of EMAs is very effective. As I did take a look at past results on the 3 EMAs, I realized it is very true. The main move is when the 4-EMA crossover 9-EMA, and the signal buy or sell will trigger.

Two proposed simple indicators:

Faster signal but slightly riskier
4-EMA moves below 9-EMA would trigger a sell, while 4-EMA moves above the 9-EMA would trigger a buy.

Much safer and accurate signal
4-EMA cross below 9-EMA would trigger a "Standby Signal", when both 4-EMA and 9-EMA cross below the 18-EMA, it will recommend "SELL". The reverse is the same.

Both work well on the 4-H chart as far back as 2003 because the majors are usually fast trending-within-range markets so there're many reversals.

Hope some of you can help! It's useful for sure if discipline and careful SL is implemented.

Comments are welcome.