Quote:
Originally Posted by scorpion
Your description of the system is only half of the puzzle. Could you please explain the purpose of EMA 55, 100, and 200? You said plot them on the chart, but what for?
Also when to really enter an order? You said when WMA 5 changes the slope, but it changes all the time.
Thanks before hand  |
Infact Kolachi Method uses moving averages in such a way that moving averages become leading indicators rather than being lagging ones.
ema200 is called axis of Kolachi Method and price as well as emas oscillate around it.When price goes to a certain distance away from axis which is uisually measured by
median lines of Kolachi Method, it is pulled back for obedience to axis.
ema55 is strong resistance of the system and ema100 is usually the profit target.In Kolachi method you can easily see the path of the price movement in an organized manner.Once a trader starts using KM, it begins understanding the ins and outs of the system which I usually call the
whispers of emas.Believe me these dead lines talk to traders and many a time warn them but we mostly give a deaf ear to them untill our capuital is lost.LOL
kolachi