5/13/62 Trading System




Trading Setup


  • Trade on any chart except 1 minute. I recommend 1-hour timeframe

  • 5 EMA applied to the close
 
  • 13 EMA applied to the close 

  • 62 EMA applied to the close 

  • MACD (12,26,9) applied to the close



Trading Rules 


Entry Rules


  •  Enter if there’s no big news coming within 2 hours.

  •  Enter if you can afford to lose money. 


Long entry rules:


  • Go long when the three EMA’s compress together and begin to fan out. (5 period EMA fans out on top of the 13 period EMA, and the 13 period EMA on top of the 62 period EMA) And the MACD Histograms must turn into positive territory. Or making higher highs into positive territory.

  • Don’t go long when MACD Histograms making lower highs. Wait for MACD to make higher highs or grow longer again into positive territory.

  • Go long when price hit the 62 period EMA and bounce back up and MACD Histograms also making higher highs into positive territory. Here the 62 EMA will act as a dynamic level of support. 

  •  Go long when 5 period EMA crosses above the 13 period EMA and MACD Histograms also making higher highs into positive territory. 5 and 13 period EMA’s have to be on top of the 62 period EMA.



Short entry rules:


  • Go short when the three EMA’s compress together and begin to fan out. (5 period EMA fans out below the 13 period EMA, and the 13 period EMA below the 62 period EMA) And the MACD Histograms must turn into negative territory. Or making lower lows into negative territory.

  • Don’t go short when MACD Histograms making higher lows. Wait for MACD to make lower lows or grow longer again into negative territory.

  • Go short when price hit the 62 period EMA and bounce back down and MACD Histograms also making lower lows into negative territory. Here the 62 EMA will act as a dynamic level of resistance.  







Exit Rules


  • Exit when the three EMA’s compress together again.

  • Exit when trade hits take profit of 10, 20 or 30 pips.

  • Exit when trade hits stop loss of 50 pips.(if you’re trading in 5min, 15min, 30min, 1hr Timeframes)

  • Exit when trade hits stop loss of 100 pips.( if you’re trading in 4hrs or Daily Timeframes)
  •    Exit if there’s a big news coming. 


Now, let’s take a look at some charts and see this baby in action. 

Long trade example: 




Short trade example: 






You must test  this system thoroughly through back testing and by trading it live on a demo account for at least 2 months. After two months of testing if you find it profitable, only then use it on a real account. 


Remember one thing, I’m not responsible for your losses.


Location: Bangladesh

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