I have dedicated this thread to the discussion of a trading method i have come across designed by a man named Eric.
It is an intraday/short term plan and is really very simple and has produced excellent results so far, although it has not been operating for long.
I have been in contact with Eric and have his permission to post it so here it is:
I am going to start paper trading this method today to see how it pans out, as my biggest concern is the brokerage costs.My selection criteria for trading the ASX20 is as follows:
Use the intraday chart set to 2 minutes.
Set one EMA to 7, another to 15
If theEMA7 crosses the EMA15 and the price is above both, a buy signal is triggered.
Set the stop loss just below the EMA15, trailing as the EMA moves up.
After about 11:30 am, set the timeframe to 5 minutes, both EMA should show up.
Always sell at the stop loss.
Generally I avoid taking a long position if the stock has risen more than 1 percent from yesterday's close
More details can be found at his website: