subject: Forex Trading Entry Signals [print this page] Recently I noticed some volatility with real USD / AUD currency. Like most game animals, such as traders, our eye is always attracted by the movement. I saw some opportunity, so I recently was the formulation of input and output signal of this pair in particular.
I spent a week together, manually back test this currency pair using 5, 15, 25 and 45 EMA (exponential moving average) and made some interesting observations. This pair is a terrible day trading proposal, but as a swing trade, this pair can be exchanged with great success. I see the AUD move south in the coming months and I am very pessimistic, but I'll just make decisions based on what my choice of EMA said.
Surprisingly, all tested EMA in all periods to be right more than 33.3 percent of the time. The best was the 15 EMA while trading on a daily bar chart. The end result was a huge profit of 22.000 pips for 12 months of activity. Imagine if you were playing for $ 10 per pip! Not a bad result. This is mainly due to a particularly bullish run in the AUD / USD currency pair in August when the collection system 14 000 pip trade.
Bare in mind, the back testing has been done without any stop loss in mind. The idea is that whatever the size of your stop is, you can always get whipsawed, especially in an unsteady gait, and are those which drive us first. I entered a trade school where the proximity of a bar per day was higher than the 15th and went long (if the fence was snapped right on the EMA I ignore the signal)
I see a lot of volatility in the pair and it could be a fight coming up next, which are among the most effective forex lose money, so I'll wait until the head and shoulders formation forms completely before diving into a profitable ride south.
