In order to use the Sidus Method you need aproximately 1 hour (according to the author..) and a chart which has the following lines on it:
Note that EMA is Exponential Moving Average and WMA is Weighted Moving Average.
The EMA’s will form a tunnel on your chart, these will show you the start and end of a trend. WMA’s show you when to enter the trade and also show the strength of the trends. You should ONLY enter the trade when the EMA tunnel is very narrow or even crossed.
Long or short?
You should go long when the WMA’s both cross the tunnel upwards. If the 5 WMA also crosses 8 WMA upwards then the signal is even stronger. You should exit the trade when the price has reached the top and 5 WMA goes below 8 WMA.
You should go short when WMA’s both cross the tunnel downwards and again – if the 5 WMA also crosses the 8 WMA downwards the signal is even stronger. Exit trade when price has reached bottom and 5 WMA goes above 8 WMA.
You should also exit your position when the tunnel becomes so narrow that it’s almost just one line as this is often a sign of trend reversal. Basically – enter the trade when the two EMA’s cross or becomes very narrow and exit once this situation occurs again.
Suggested stop loss for this strategy is 10-15 pips and suggested pairs for this strategy are EUR/GBP and EUR/USD.
Note: I haven’t tested this stragey myself YET and cannot say if it works at all or not. If you have, be sure to post your outcome to the comments section.
