Itsimpossible Ema Stratgey 4

We're very excited to have you here!
We hope
you enjoy the community and grow together.
We have lots coming in 2024 and different trading systems, however, this is the
basic model and a mechanical system everyone can follow:
#itsimpossible was created to add confluence to existing systems this is one we

created so anyone could get started with trading.
1. Setup your indicators

Here are the rules for the ema
If the 50 line is below 200ema we are only taking short signals example blue 50 is
below so only looking for shorts.
If the 50 line is above the 200 ema we are looking for long signals only!
NO COUNTER TREND.
Now let's add the #itsimpossible BETA indicator
Look in your invite-only, if you can't open it restart Tradingview. We can use any
time frame but for this, we are going to give 2 examples you can try.
Optional - Use 2 indicators. One for lower time frame liquidity, and one for higher
time frame. I like this however using a standard 1min and 1min is fine.
Set your chart to 1 minute, and on the indicator settings change the time frame to
30 seconds or 1 minute if can't use the seconds.
Alternative - Set your chart to 3 or 5 minutes and keep the settings for the time
frame to 1 minute in the indicator. here is the 5 min example.
When to trade - we advise trading 2:30 - 6:30 and 8:00 - 12:00 however plenty of
people trade outside these. UTC New York Time
2. When to enter a trade.

Only when lines get breached marked with an x above the candle and the
candle closes below can you enter a trader. for short trades (sell) red lines
only and long (buy) Green lines
Stop loss goes at the Atr level 0.35

The profit target is either full at the next opposing line or take partials at
each line.
Go BE at 50% of target.
If you get wicked out wait for a candle to close below the original and
enter again (optional
3. When to exit a trade.

Same trade above we have a short, the target is the first green line below for
4.74r
For taking partials you would go BE at the green line take say 40% of the trade,
then continue to take profit at each further line like below
4. Non valid trade entries
In this example the candle body closes on the line, this doesn't give us any
indication of weakness and we wait for a clear entry. with these entries, you
should use a risk management entry
In this example the candle closes above the line, therefore this is not a valid
trade and we do not enter.
5. Risk Management
With using EMA’s they are lagging, so it is advised to use good risk. We have
provided some options you can add to the system to increase the win rate and
reduce losses.
Limit Order Entry / ATR market order.
When you get a valid entry like shown, place a stop limit order below the candle at
the ATR, SL at the other ATR and if the next candle closes above the entry candle
then remove the order.
In the example below we take in on the trade move to target past 50% so go BE then
get taken out avoiding a loss.
In the below example, you can see we avoid a loss by never getting taken in. We
remove the limit order as soon as the price closes above,
In the below example of a winning trade, we take profit at the opposing high time
frame liquidity, however trailing or partial would have resulted in more R.
Market structure shift/change of character this one expects is so important

and will save you and make you countless R options. If this happens and EMAs
don't align, you can have a no-trade until it all aligns again. Gray is no trade;
green is trade.
As you can see in this example below, we get a bearish Choch EMA’s alignment, and
this could be great to drop down to 1 minute or put LTF liquidity on to grab the
continuation as in the second image using 30 seconds, making 9r.
5.1 Reduce Risk
If the price is below or above 200 Ema (bias dependent), halve your risk per trade.
If the price is above 200 you use the limit order entry or wait for the next candle.
I advise only losing a set % per session. So if you were risking 0.5% it could be 1%
that could be so if trading London and New York your risk is 2% per day.
Focus on catching the runs and building confidence to trail your entry
5.2 Prop firm risk management

It is advised to take your drawdown and divide it by 15 this will give you risk per
trade
for example 8% drawdown on a 100k account would be 0.53 so let's call it 0.5% per
trade and risk 500 per trade.
Trail price by using the ATR once 50% hit
6. Counter trend trading

You should focus on only taking counter-trends from higher time frame liquidity
this can even be applied when the price is below the 200 for example.
Counter trends offer some of the biggest R, especially during key times of the day.
you need to focus on the pair you using and check which higher time frame is
respected more for reactions for day trading.
When trading forex I recommend the 5, 15, or 30 for HTF

In this example, we see the price hit HTF liquidity counter to the EMA and offered
an excellent return for the risk, if we ignored LTF liquidity it only cost us -1 for 36r.
price did return (Thursday 4th Jan 2024)
6. Lower Time Frame Liquidity (LTF)

Lower time frame liquidity is better used in reversal structure as below triple top or
double bottoms for example or in continuation of a trend.
When the price is in a strong trend and you want to get in on the action it is LTF that
will help you catch those moves.
in the example, we see a double bottom, the break of structure, and then our LTF
liquidity to get in on the trend. understanding what liquidity type and time frame
it's from is important to what you can expect.
This is a good example of both HTF reversals, expecting a draw on liquidity lower
than LTF liquidity to continue the move.
6. Market Structure
Your goal should be to become an expert at this as it will help you avoid the last
part of the emas where you get most of your losses, understanding when a Choch
happens can help you avoid and then capitalize early on the move. I don’t have any
courses and until I have any videos to help I will always recommend this
6.1 Market Structure Mechanical Choch
7. Future
All I ask is to tag me on Twitter with the #itsimpossible we love seeing people's
trades let me know if it helped as that's what makes giving back all worth the time
and effort.
#itsimpossible has lots of future development and additional ways it can be used
I wish everyone the greatest of success.
Zoo and T-bone.

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We're very excited to have you here!

#itsimpossible was created to add confluence to existing systems this is one we

1. Setup your indicators

Now let's add the #itsimpossible BETA indicator

2. When to enter a trade.

Stop loss goes at the Atr level 0.35

3. When to exit a trade.

Limit Order Entry / ATR market order.

Market structure shift/change of character this one expects is so important

5.2 Prop firm risk management

Trail price by using the ATR once 50% hit

6. Counter trend trading

When trading forex I recommend the 5, 15, or 30 for HTF

6. Lower Time Frame Liquidity (LTF)

6.1 Market Structure Mechanical Choch

Zoo and T-bone.

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