Understanding the AI Wizard MA Strategy

Understanding the AI Wizard MA Strategy

Indicators used:

8-Day EMA – (Black)
21-Day EMA – (Blue)
AI Wizard - Buying/Selling Indicator - Momentum
200-DAY EMA for TREND Identifier - (PINK/Purple)

Time frames Used:

Daily
30-Min

Explanation:

The 8-Day EMA will be used as your GUIDE to determine when to enter a trade whether you’re buying, selling or simply know when NOT to enter any transactions. Upon finding buying or selling opportunities, you will know exactly where to place your stop losses and/or limits based on 2:1 ratio management. Always follow the Momentum indicator as well as Buying and Selling meter as a confirmation tool.

Buying:

First, check the daily chart to analyze the current trend of the currency pair. This way you’re fully aware whether you’re trading with or against the trend by the time you’re ready to place trade on the 30-min chart.

Second, move down to any time of your choice, but prefer to stay on the 30-min chart to identify where to enter your trades as far as an entry rate is concern. You will then look for the crossing of the Black 8-Day EMA through the Blue 21-Day EMA for a Buy order. As always, keep close attention at the momentum indicator, but more importantly the Buying and Selling meter as it should be used as a confirmation tool prior to entering any transaction. When buying, the meter should read above 20+.

Please note that you should NOT BUY on the most recent RED candle upon the crossing of the 8-day Black EMA. Patience is a virtue when trading currencies, so you should follow rules in order for a better success rate. Once the 8-Day EMA crosses through the 21-Day EMA, you should wait at least 1 full Green Candle and enter at the 2^nd perhaps 3^rd consecutive candle for a BUY confirmation.

Once you find an entry rate, you will then look at either the 21-Day EMA or the Yellow Cautionary Zone on the AI Wizard and place your stops at least 10-20 PIPS below either level of your choice (EITHER / OR). Your limits will always be doubled, perhaps triple of your stops from your initial entry rate.

Exiting your trade:

Again, refer to the EMA combo to determine exactly when to close your trade. Look always for the 8-Day EMA (Black) crossing the 21-Day EMA (Blue) the opposite direction. Upon crossing, the trade has been completed.

Note: You can always re-enter trades whenever the crossing of EMA occurs over again.

Selling:

Second, move down to any time of your choice, but prefer to stay on the 30-min chart to identify where to enter your trades as far as an entry rate is concern. You will then look for the crossing of the Black 8-Day EMA through the Blue 21-Day EMA for a Sell order. As always, keep close attention at the momentum indicator, but more importantly the Buying and Selling meter as it should be used as a confirmation tool prior to entering any transaction. When selling, the meter should read below -20.

Please note that you should NOT SELL on the most recent GREEN candle upon the crossing of the 8-day Black EMA. Patience is a virtue when trading currencies, so you should follow rules in order for a better success rate. Once the 8-Day EMA crosses through the 21-Day EMA, you should wait at least 1 full RED Candle and enter at the 2^nd perhaps 3^rd consecutive RED candle for a better SELL confirmation.

Once you find a entry rate, you will then look at either the 21-Day EMA or the Yellow Cautionary Zone on the AI wizard and place your stops at least 10-20 PIPS below either level (EITHER / OR). Your limits will always be doubled, perhaps triple of your stops from your initial entry rate.

Exiting your trade:

Note: You can always re-enter trades whenever the crossing of EMA occurs over again.

Should you have any questions, please let us know at support@jdfn.com or dial 866.276.1923 – 1.407.265.1212 (Outside of the USA)