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investorlathan
Jul 21, 2014 12:15 AM

Guppy System 

Euro Fx/U.S. DollarFXCM

Description

EMA(C,3),Colour aqua ;
EMA(C,5) ,Colour aqua;
EMA(C,8) ,Colour aqua;
EMA(C,10) ,Colour aqua ;

EMA(C,12) ,Colour aqua;
EMA(C,15) ,Colour aqua;

EMA(C,30) ,Colour dark blue;
EMA(C,35) ,Colour dark blue ;
EMA(C,40) ,Colour dark blue;

EMA(C,45) ,Colour dark blue;
EMA(C,50) ,Colour dark blue;
EMA (c,60) ,Colour dark blue;



for the trend i also add a EMA (c,200) ,Colour brown



The best entries are when the long term MAs (blue) is already aligned in a perfect order behind the trend indicated by the short term MAs (aqua)



There are a few of things you need to pay attention to when using the guppy:

1. Avoid trading against the 200 EMA. (I don't like trading against the multi-day trend, either.)

2. Don't take shaky crosses. You want the candle to be moving above or below the greens with authority.

3. The best crosses occur at a sharp angle against the reds.

4. Do not take a cross if the reds are still pointing the other way. When the reds tighten and start to flip over, you're ok.

5. Sometimes it is better to wait for a pullback to confirm the validity of the move. When you get a candle closing at its high or low in the direction of the move, you can enter.
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