I have been attempting to operate on a method of trading which combines conventional price action analysis with indiors. Really I am paying around with thoughts.

One thought that I have seemed to adopt is using three EMAs (I'm using EMAs of 8,18 24 in combination with an occilator indior). In particular I am interested in their (I want to use the word'convergence' but don't want to have this confused with MACD) marriage. Note that this isn't a three MA crossover method.

I discover that whenever all 3 EMAs join together in a trading range, it's highly probable that a trending movement will probably break out. After price breaks out in a movement, the EMAs will seperate. As price makes retracements or corrections, either two or all three of the EMAs will join, which makes good entry points in existing tendencies (often a fantastic entry point is when the 8 18 EMA will touch and price will probably respect the 24 EMA).

This combined with an occilator indior (I use RSI because its simple) is so far giving fairly reliable signals. Just wondering if anybody can maybe who's worked on a simmilar method can add their two cents, like flaws, observations, departure egies, etc.. Like I said, this is an idea that I am toying with, but really want to develop.