Tuesday, December 2, 2008

The Sidus Method

What do you need?
- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)
The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start
of a trend and the end of a trend. Long term
The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of
the trends.  Short term
Entry Signals
! You should only open a position, when the red tunnel is extremly narrow or crossed !
LONG: 5 WMA & 8 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.
SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.
Exit Signals
Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA  Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA  Close position
Always close your position when boundry’s of the red tunnel cross eachother or when they become so
narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position
and open a new postion in the other way (If you were long, close, open a short postion)
When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red
tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!


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