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Intraday Price-Average System

The logistics of this plan are relatively simple to employ and quick to interpret.
After reading this package you and paying closer attention to your charts after
you have set them up with the instructions I am about to give you, you will
probably smack yourself for not noticing the trend sooner! But anyways,
someone has to notice things first, and I am happy to pass this knowledge on
to others. Before I go into detail about this system, I will brief you on the
general outline of the system:

\u2022
Chart is setup on either a 30 minute or hourly timeframe, in a
filled candle pattern.
\u2022
Add a Exponential Moving Average with a period of 11.
\u2022
Open your regular indicators (volume, RSI, MACD, etc) in order to
monitor market voice and direction, strength, etc.
\u2022
Enter after cross of two price lines (price vs. EMA)

Prior to any trading with this system you must decide upon a set up figures for
your limit and stop orders. This system will generate a handful of trades per
day usually, so if you miss one you are most likely to see another come your
way within the next few hours. If you are using a platform that utilizes SMS or
email alerts, you can set it to alert you when your situation has been
breached. The limit and stop levels to trade are dependent upon your
personal situation, trading style, risk tolerance, and capital. It also depends on
what timeframe you are trading, as with an intraday trade you may only seek
20-50 points on the low end, or 100 points or more on the higher end of the
spectrum. With a swing trade, of a few days or more, you may seek a few
hundred points. You need to assess your situation carefully before you
proceed, and set a plan of action and STICK TO IT. Over 90% of people who

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trade forex fail and/or lose money, and there is a good reason for this statistic.
Well, more like a few good reasons. Generally, they are beginners, so they are
either not educated enough in the workings of the market and anything
encompassed by it. They do not have an action plan for their trading setup.
They are trigger happy, sometimes trading for the sake of trading. A good
majority of them are greedy, and cannot pull the plug on a bad trade before it
gets out of hand OR sell a profitable trade while it is still rising. A successful
trader needs to be the picture of all of these principles, on the opposite end of
the scale though.

The Setup:

1. Open up your trading platform and open a chart.
2. Set the instrument to the currency pair of your choice.
3. Set the chart pattern to filled candle.
4. Set the timeframe to 30 minutes
5. Set up a moving average line in your indicators menu.

-set period to 11 days

Now that you have your chart setup properly, go ahead and set up your
normal indicators that you use for reassurance and entrance/exit, etc. I use an
MACD, a volume indicator, and Bollinger bands, but everyone has their own
theory on what works and why, and everyone has a reason why your
indicators don\u2019t work when they seem to work just fine for you!

Now before I explain what you are doing with this setup I would like you to set
up the chart as I have indicated, and take a good solid look at the history of
the data. Do you see any telltale signs yet, or have a clue as to what the point
of the setup is yet? If you do not, do not worry or feel inferior, as this has
slipped past some of the best. I happen to be great with numbers and have a
strong background in analysis, so I was able to pick up on this trend mostly by
dumb luck but good fortune and a keen eye for detail.

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Now that you have stared at your screen looking for it, I\u2019ll explain myself.
What you are looking for is the moving average line, or herein referred to as
the MA, that you set up on your chart to cross through the price line. You are
probably saying to yourself, \u201cThis happens like every hour or so, what gives?\u201d.
Well, it does happen fairly often, maybe not that drastically, but it does. The
key point is where the MA crosses the price line. You don\u2019t need to worry or
care about it crossing the thin peaks of the high/low lines on the candle, but
you want to concentrate on it crossing through the middle of the wide, filled
part of the candle, the open-close prices. And further yet, it must cross in
around the middle of this center section. If it crosses at the top or bottom of
the candle centre area, than you can pretty much disregard the trade. It may
be profitable, but not worth the risk. Stick with the center of the central region
and you will be much safer.

Now, when the MA indeed crosses the price line through the centre of the
central wide part of the candle, a trade signal is triggered. You should try and
wait at least one more candle before entering a position just to ensure that the
cross wasn\u2019t a blip on the radar and its not about to recant its previous move.
The chart is set to the 30 minute timeframe, so generally wait 30 minutes or
so, unless the market suddenly takes a quick shift in that direction. Then you
can open the position to catch the swing.

Now to determine direction. If the MA moves from above the price line to
below it, the trade is going to be long. And likewise, if the MA moves through
the candle from below the price line, the trade will be short. This can be
verified by checking your indicators that you have set up to corroborate with
your MA. To better clarify this direction idea, if after the cross the price is
below the MA, the price is most likely dropping or SHORT. If the after the cross
the price is above the MA, the price is considered to be rising and the trade is
LONG.

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