USE OF THE EMA’S FOR DIRECTION

I was thinking of a way to tell the direction of the pair and the best way to ultimately be correct when trading and this is what I came up with.

It’s really quit simplistic in the usage and execution. One constant, as I have stated in the other articles that I have shared with you, Is that all charts build the same. So if you have the 15 min chart starting to brake to the short or sell then the further that the EMAs spread apart (separation and angel ) then it stands to reason that the 30 1hr and 4hr will fallow right behind the 15 especially when starting in to a trend .

Then once the trend has been established, then the main consideration should be on finding the pull back and which charts 10 EMA it is pulling back to. This can be determined easily by seeing where the price is as opposed to the 10 EMA first of the 15 then the 30 and so on usually when the price candle passes the 10 EMA on the lower chart you can expect the pull back on the next higher chart to occur and once the lower chart has passed the 20 EMA then you can expect that the pull back is on the second higher chart.

EXAMPLE
When working with the one hour trade plan and you are waiting for the 4 hr to set up for the short move (waiting for the pull back)

You will find that the 4hr is trending short but it must do the pull back to get the CCI in position. You will find in the process of the 4hr doing it’s pull back that the 1 hour has crossed the 20 EMA and if you go on back that the lower charts, when it passes its 10 EMA on the 15 then you are on the way to the pull back of the 30 and it is usually confirmed by the 15 crossing it’s 20 EMA and by the time the 15 passes the 20 the 30 min has probably crossed it’s 10 EMA and so on up the chart time frames.

So if you are looking for a full pull back to get the CCI of the 4 hour in position look at the one hour chart to see if it has crossed the 20 EMA yet and when it does then more times then not you will have your one hour trade plan set up.