The setup is as follows.
The first thing that needs to happen is that the 6 EMA and the 12 EMA
cross into the 50 SMA. Here's an example of a cross:
See how the green Ema and the red Ema cross the flashy green line? That is
the first step of a signal. Now the optimal signal is when the red and green
lines are VERY close together when they cross the flashy green line. What
this means is that it is moving very well into the up or down direction.
When the lines are further apart when the cross happens, the trade is a bit
riskier. You will also hear an alarm go off when the Emas cross; this is so
you don't have to be glued to the screen.
Now the important part is this: The closer the signal happens after the
cross the higher the probability of a winning trade. If the signal occurs 5
bars after the cross, you see long bars and you are very far from the cross,
do not enter. The safest trade is when the cross happens and right after FX
Prime signals a trade.
The further away you are from the cross and the Fx Prime Signal the riskier
the trade. (This is something you will get the handle on, and why I like to
get to know and trade one currency like the back of my hand!)
For the exit strategy we will use a very special Heiken Ashi indicator.
Download : http://www.box.net/shared/n3kxc7a34s
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