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Sunday, January 3, 2010

Sidus Method

Sunday, January 3, 2010
Timeframe
The longer the timeframe, the better. I would recommend to use at least the one hour timeframe (H1), but I rather use the four hour timeframe (H4).

Chart
I set my graphic in barcharts, but that is really your own preference.Indicators
Add the following indicators :



+ EMA (exponential moving average) : 18 in yellow (closing price)
‘The Tunnel’
+ EMA (exponential moving average) : 28 in yellow (closing price)
+ RVI (Relative Vigor Index) : period 100 in blue and red
Trading pairs



Use whatever you like. I recommend using pairs you are familiar with. Always bear in mind news releases, long term estimates and other fundamental trading aspects.

Getting in a trade
Long
If the blue RVI crosses the red RVI upwards AND is followed by a confirmation of a cross by the EMA’s from the yellow tunnel.

Short
If the blue RVI crosses the red RVI downwards AND is followed by a confirmation of a cross by the EMA’s from the yellow tunnel.

!!! Always keep an eye on the main trend of the RVI. For example : If you get a long signal and the RVI is also going up then your almost sure that the signal will be correct !!!

Getting out a trade
You can stay in a trade as long you dont get new signals on that pair. Especially pay attention to a internal cross (or extreme narrowing) of the yellow tunnel EMA’s. This means that the trend is likely to loose strenght and maybe even to reverse.I recommend a trailing stop. Monitor your trade the first day, to see if you have followed the right signal. Use your Money Management rules and stick with them.
Also keep attention to news releases and other fundamental issues.

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