5 EMAS SYSTEM
5 EMAS SYSTEM
The Main Rules (Technical)
Entry Rules for Short Positions:
- MACD Condition:
- The MACD on the 1-hour chart must be below the zero line for at least three consecutive bars.
- The earliest entry point is the fourth consecutive bar below the zero line.
- Price Condition:
- Wait for the price to touch the 5-period EMA of the Highs (turquoise line). In the example below, this occurs at the fifth MACD bar.
- Stochastic Condition:
- On the 15-minute chart, the Stochastic indicator must show an overbought situation (value ≥80).
- Williams’ %R Condition:
- On the 15-minute chart, the Williams’ %R indicator must also indicate an overbought situation (value ≥-20).
Additional Information: If the entry signal occurs when the price is below the 20-period EMA of the Closes (black line on the 1-hour chart), this signals a much stronger trade alert, as illustrated below.
Entry Rules for Long Positions:
- MACD Condition:
- The MACD on the 1-hour chart must be above the zero line for at least three consecutive bars.
- The earliest entry point is the fourth consecutive bar above the zero line.
- Price Condition:
- Wait for the price to touch the 5-period EMA of the Lows (maroon line). In the example below, this occurs at the fourth MACD bar.
- Stochastic Condition:
- On the 15-minute chart, the Stochastic indicator must show an oversold situation (value ≤20).
- Williams’ %R Condition:
- On the 15-minute chart, the Williams’ %R indicator must also indicate an oversold situation (value ≤-80).
Additional Information: If the entry signal occurs when the price is above the 20-period EMA of the Closes (black line on the 1-hour chart), this signals a much stronger trade alert, as illustrated below.