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Forex trading strategy #35 (Azim X System)

Submitted by Azim

In this system, We use the following components:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) applied to the Close.
3. 21-period RSI (RSI 21)
4. Bullish/Bearish Engulfing Pattern, Hammer, Inverted Hammer candlestick patterns.

TimeFrame: Any
Currency: Any

Entry Rules for LONG Trades

Two conditions must be fulfilled:
1. EMA 5 crosses EMA 12 to the upside… AND our RSI 21 > 50.
2. We’ve got confirming candlestick pattern: Either Bullish Engulfing Pattern or
Hammer.

Entry Rules for SHORT Trades

Two conditions must be fulfilled:
1. Enter short when EMA 5 crosses EMA 12 to the downside AND RSI 21 is less
than 50.
2. We’ve got confirming candlestick pattern: Either Bearish Engulfing Pattern or
Inverted Hammer.

Stop Loss:
For long trades, stop loss should be placed at the nearest support.
For short trades, stop loss should be placed at the nearest resistance.

Exit Rules for Long Trades:
Exit the trade when EMA 5 crosses back below EMA 12 Or RSI 21 < 50.
Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target.
Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades:
Exit our short trade when EMA 5 crosses above EMA 12 Or RSI 21 > 50
Or when price stalls at major support, trendline, pivot points, Fibonacci projection target.
Or when bullish engulfing patterns or hammer patterns form.


I like it, Azim, but instead of exiting at the next signal of the EMAs/RSI I would set predefined SL and TP with a good risk/reward ratio, like SL 50 pips and TP 150 pips on the hourly chart.

Regards,
Marco

this like in ebook john chen give me :-)

Thanks for posting the strategy Edward=D..hope i can get feedback from traders=D

Thank you,
Azim

Hi ...

this already posted before... i can't and changes other than the rsi settings...

http://forex-strategies-revealed.com/trading-strategy-basicbalanced

Hello Marco,

Yes u may exit earlier if u are satisfied with the amount of pips you've got..that is just a recommendation for trying to capture the maximum profits;) anyway, i also prefer to exit earlier in hourly chart=D

Regards,
Azim

Hai User,

Yep this is exactly the same;)..i got it from john chen..i just want to share it to everyone here and try to improve this system=D..For now i am trying to test with stochastic too and its doing well.

Happy Trading~

regards,
Azim

Oh by the way user,

This is almost similar to 'simple balanced system' but this system needs engulfing pattern or a hammer to confirm the entries. as i have tested before, i managed to get around 20-40 pips per day.

Guys,

I think you may want to use this with this new improved version Stochastic..it is called 'Stochastic RSI'

StochRSI_basic.mq4