E chart clairfication

On an E chart, what constitutes a signal? If both the 5 and 10 are on the same side of the 20 regardless of when either crossed or do you try to catch them when one is crossing and the other is already crossed in the same direction?

Would you trade a FP on the 55 simply based on E chart confimation? If so,once the 55 FP candle has formed, would you look back or forward for the E chart signal?



Edited 1 time(s). Last edit at 08/26/2013 07:35AM by mtut.

mtut Wrote:
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> On an E chart, what constitutes a signal? If both
> the 5 and 10 are on the same side of the 20
> regardless of when either crossed or do you try to
> catch them when one is crossing and the other is
> already crossed in the same direction?

A signal on E charts is when BOTH the 5 and 10 have crossed the 20 in either direction. WAIT for both to cross the 20. Do not jump the gun. Generally the 5 will cross the 20 first and the 10 will follow. I do not jump on a trade if the 5 and 10 have crossed the 20 and they have been crossed for a while and then they laminate and move again forming an E.


> Would you trade a FP on the 55 simply based on E
> chart confimation? If so,once the 55 FP candle has
> formed, would you look back or forward for the E
> chart signal?

I want an E signal happening first. On the safe side you want a FP or HRFP on the 55, 34, and 21. These do not have to happen at the same time but very close to the same time, i.e. within minutes. In a case like that watch your 5 or 3 chart for entry. If you are looking to enter a trade with confirmation on the 34 and 21 but none on the 55 look at a 5 chart and see if you are already over sold (Stoch RSI) or over bought also look at MACD...are your "comb lines" increasing or decreasing or in other words going opposite of the direction you are planning to trade.

If you have E signal and an hour later you have a FP or HRFP it is possible that your trade you are planning to enter is flattening. It is better to monitor.

AAPL today was a perfect example you had a HRFP on the 55,34, and 21 at the open and confirmation on the 5 E chart. On the open however you did not have confirmation on the 10 E chart. Therefore your trade was not ready. The second candle on the 10 E chart formed an E but your 5 E chart was flattening and then went down and then laminated. There has not been an entry on APPL. You still need an action chart for the trade. For me my action chart is the E charts. Although the 5 gave me an E the 10 did not. Then the 10 gave me an entry and the 5 did not.

S/O said that if the E charts are not working for you they are working against you. Remember the E charts are moving averages of the stock you are looking at. Moving averages are a force to recon with and can ruin what looked like a great trade or take you to Hawaii!

Darcy2,

Based on this, what would you say about NFLX today?It looks to me as though some FPs and the E signal on the 10 form about 1030? Could have been a good trade.

You are correct if you missed the signal on 8/23 using the 10 E chart and GW's 55.

If I entered this trade on 8/23 I would have exited probably the same way I exited LNKD. Entering on 8/23 would have been bigger $$ but you still could have entered on 8/26 and made $$.

The wider the separation on E the longer the trade will last. When the 5 and 10 start drawing closer together there is a possible turn around coming.

Good stuff!
Thanks!