Advanced system #3 (Neat entry: RSI + Full Stochastic)

Hi Edward - I just wanted to say a quick Thank You. I'll incorporate the 9 EMA method into my strategy. Thanks again - you're doing a great service to me and all the other newbie forex traders out there !

Andrew

Thanks, Andrew

Happy trading!

Edward

Hi Edward,
Does this mean I will have to wait for that day for which candle closes above (for long) or below(for short) after entry signal(signal might have given signal 2-3 days before)?

Thx.
Tom

Hi Tom,

if you mean 9 EMA, then yes.
After you get a signal from 150 SMA, RSI, Stoch, it is normal to wait for 2-3 days or more for a candle to close above/below 9 EMA to enter a trade.

Regards,
Edward

Hi Edward,

Thank you for your reply and understanding my question.

Regards,
Tom

Hi Edward,

One question, for example we get a long entry signal, and after few days we get 9 EMA confimation, but this time stochastic is already above 70. Should we enter?

Thx.
Tom

Hi Tom,

Yes, we should.
I would say that it is similar to putting check boxes: when Stoch signal is received, we check it and move on to the next condition (9 EMA) without ever looking back.

Besides, despite common believes, Stochastic readings in overbought zone doesn't mean that the trend is ending. In fact, it is the opposite - with Stoch in overbought zone the trend continues even stronger and may last for a long time before Stochastic actually exits the overbought zone.
So yes, we want to trade there.

I know why you're asking this question: because in the strategy rules I've advices to already look for exits when Stoch reaches 70. As practice shows it is not always the best way to exit, although it is a safe one (that's why I put it up initially).

Regards,
Edward

Hi Edward,

Great thoughtful reply. Thanks.
Do we have any other proven trading strategy on daily timeframe here?

Thx.
Tom