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

Thank you for your comment.
ADX would be a good indicator to measure the strength of the trend and can be put on the charts just for reference. However, if to use it as a guidance for entries it would postpone or even miss many good trading opportunities.

Regards,
Edward

I used this system on couple of different pairs and went in loss of almost 40 pips in 2 hrz approx (3 times). Though SMA was well below 150, RSI was above 80 and Stoch was above 70 (all conditions met for Sell). Any guidance for me plz as i was thinking this system really useful but i don't know why its not giving me the desired results. And should i close my trade once it went to 40 pips loss on a D1 chart based strategy like this or i must wait for the day atleast?

Originally the system requires a stop to be placed above the highest point of the last swing high for a Sell order, and below the lowest point of the last swing low for a Buy order.

In case your stop was hit, you should wait for a current day to close before placing another trade. Make sure the rules for entry are still valid the next day.

Regards,
Edward

Hi
I have a question regarding this strategy. In my D1(daily) chart its showing the price below 150 SMA, RSI 83 and Stoch 85 which is a signal of short according to the rules but when i switched to H4 chart with same stuff its showing RSI 90, Stoch 87 BUT the price is well below the 150 SMA where i shouldnt go for short cz one condition is not meeting the rules. What should i do? Should i continue with short cz of daily chart indicator or i shouldnt cz of H4's? Thank you so much for such a helpful and nice information on this site. I will wait for the kind reply and guidance

Hi,

According to strategy rules, to pick up signals we use this setup for daily charts only.

If upon receiving a signal you wish to switch to 4 hour charts to identify a better entry (which is good), you should seek for other methods of finding your confirmation signals, and do not use indicator setups from daily charts and especially 150 SMA indicator there.

Regards,
Edward

Hi Ed,
This is a very good strategy. Can you please let me know what I could have done during the last few days to avoid entering the market. Had I entered the market based on the stochastic crossover, my stop would have been hit. On my chart with IBFX, it shows that there was a crossover on 4/30. however the market goes down the next day. Is there anything else that I could have looked to before entering?
thanks
narayan

Hi Narayan,

Since you are trading on MT4 platform, see if you like this idea of entries with GANN HiLo Activator indicator:
http://forex-strategies-revealed.com/mt4/gann-hilo-activator

The rules would be as follows: upon receiving a signal from the original (RSI+Stochastic) strategy, wait till the price bar appears on the opposite side of GANN HiLo indicator, then go, e.g. price above indicator line - buy, price below indicator line - sell.

Regards,
Edward

Thanks Ed. Will try that out