Advanced system #3 (Neat entry: RSI + Full Stochastic)
Submitted by Edward Revy on May 13, 2007 - 15:40.
Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
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Hi,
Is this strategy good for smaller time frames like 1 hour or 5 mintue
Grace
segun, probably you could wait for a break out OR trade range-support/resistance lines will help !
Not so much, Grace
but the concept can be definitely borrowed.
Best regards,
Edward
it is very very good website
Can I know how do you deal with news trading when using this strategy?
From,
Raymond
Hi Edward,
Mind help me to look at the pic below.
On the pic, the red dotted show the sell entry signal (RSI above 20, Stoc above 30), and we enter on the new candle, which is the yellow dotted line. Is it correct?
Hi,
I've noticed, it is a 4h chart, not daily. Anyway,
the entry should be made later, not on the red or the yellow line.
RSI is above 80 which is good, but Stochastic lines are not crossing yet, Stochastic should be above 30 AND its lines should cross, then it is time to consider trading.
I've noticed there is a moving average on your chart (is it 9 EMA in brown?)
If so, then we'll have a good setup, which will give us a signal on the long bearish candle that closes below 9 EMA (it is the 5th candle after the yellow line on your screenshot). Set a pending order 5 pips away from its low and catch a move down.
To Raymond: news don't affect the strategy performance, since we're trading on daily charts.
Best regards,
Edward
Hi Edward,
Is it ok to trade this in both direction without using the SMA?
From
John