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 Alex,
I understand, but no, I haven't tried to add any more indicators, or better to say, I haven't found one to add yet.
MSK suggested MACD, and I think it is one of the options. Thank you for sharing it, MSK!
For me, this is where I simply switch to other strategies.
Best regards and happy holidays everyone!
Edward
Edward & MSK
Thank you, Guys!
I wish you happy trading in upcoming New 2010 Year!
Alex
MSK do you exit on the macd on the closing bar?
Thanks very much edward
Where to find full stochastic in mt4...
Thanks..
In MT4 we have a Slow Stochastic, which is the same as Full.
Cheers,
Thomas
Edward
How about the situation where the price action exceeds the 150, but the 150 is sloping (slightly) down? I take it this is still a bullish trade in which we should only trade a long position. Still, the slope of the 150 says things are declining. A bit of a puzzle for me. Your expert thoughts?
Forest
Hi Forest,
SMA in this case has a very large period - 150 - which means it need some time to change its angle. I stick to the rules of price trading above/below SMA here, rather than evaluating the slope and direction of the SMA;
Nevertheless, your observation makes sense, which we can use to our advantage: we'll be more confident when taking trades in the direction of the SMA slope, and more cautious while the conditions contradict each other.
Best regards,
Edward