Forex trading strategy #5 (5x5 Simple system)

Hi Edward and hi everyone,
Wishing u all a very happy new year!
Tks Edward for this strategy and this great website which is always open on my comp!
Regarding this strategy ,I have these questions:-
1)if RSI is below 50 (for shorting) and the immediate next candle to the signal candle does not go below 10 pips but the next to next candle goes below 10 pips n rsi is still below 50,is the entry valid?
2)Also,if the signal candle itself is very long,then can we consider the setup valid as very long movement has already taken place n not much steam left in the trend?sorry abt this question as this is a factor we consider more in shorter timeframes.I have no idea how it works in daily tfs.
3) I would like to get some tips from you please on daily frames.To protect our acct on shorter timeframes,we stay away from newhours. but how do we protect ourselves on daily timeframes where several news are scheduled in all sessions.
Please help
Tks and regards
Mircalegirl

Hello Edward,
Me again!
I also want to know if there is any s/r indicator for daily frames.i use pivot lines for profits and sls on shorter tfs but have no idea where to book my profits on daily charts.can u please help with /R indi as i am very comfortable using s-r levels or any other tips on the same.
tks
Miraclegirl

I posted 2 questions 2-3 days ago.they havent appeared here.wonder what's wrong?

Hi Miraclegirl,

Everything is ok.
The delays are caused by holidays, we're returning to work.
Edward will be back with answers in few days, I believe.

Cheers,
Thomas

oh ok,
sorry for my impatience!
MG

Hi MG,

Answering your questions:

1)if RSI is below 50 (for shorting) and the immediate next candle to the signal candle does not go below 10 pips but the next to next candle goes below 10 pips n rsi is still below 50,is the entry valid?

Yes, that's a valid entry signal.

2) Also,if the signal candle itself is very long,then can we consider the setup valid as very long movement has already taken place n not much steam left in the trend?sorry abt this question as this is a factor we consider more in shorter timeframes.I have no idea how it works in daily tfs.

If the signaling candle is extremely long, it is better to wait for a retracement. But if it's simply long, it is ok to enter, it often signifies that we broke out of some support/resistance level and the move picked up speed as brekout traders joined in. On daily charts after the long candles there is still enough steam left in the trend, although the move might be short living, e.g. continue forward for few well sized candles before settling for a retracement. One thing you would need to do after the entry is tightening and trail your stops to 1/2 of the length of the previous candle.

3) I would like to get some tips from you please on daily frames.To protect our acct on shorter timeframes,we stay away from newhours. but how do we protect ourselves on daily timeframes where several news are scheduled in all sessions.

On daily charts we don't hide from news hours. The only day when you may use extra caution is NFP report on the first Friday of each month.

4) I also want to know if there is any s/r indicator for daily frames.i use pivot lines for profits and sls on shorter tfs but have no idea where to book my profits on daily charts.can u please help with /R indi as i am very comfortable using s-r levels or any other tips on the same.

On daily charts we define S/R lines manually without indicator, this is always the best way to draw S/R levels.
However, the easiest way to find common S/R levels is by looking at tops and bottoms created by ZigZag indicator. In the same manner we can draw trend lines using Zigzag.

Best regards,
Edward

ok Edward,
tks fr all the answers.they are valuable as always
Miraclegirl

Hi...

You have mentioned in the strategy " Always remember to take actions/enter the trade only after the signaling candle is closed." which means we have to enter the trade on the next day?
is that right?

Thanks
Milanthi