Forex trading strategy #14 (5x5 Simple system)
Submitted by Edward Revy on February 28, 2007 - 15:46.
Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method. Trading strategies like this can only be discovered through a long and determined observation of the price behavior.
To start:
Currency: ANY
Time frame: 1 day
Indicators: 5 SMA, RSI 5
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Hey there Edward. Can you use this system for day trading 15/5 minute charts? Cause its been working very nicely on 1D charts.
Thanks!
Besides monitoring charts all the time, it would also require changing trading positions constantly. I think smaller time frames won't provide good profit opportunities and smooth trading with current setup.
Happy trading!
Edward.
Time frame one day? Does it mean that each candle represents a day?
If it represents a day:
You said buy when price crosses over 5 SMA and makes + 10 pips up and then you said,
Always remember to take actions/enter the trade only after the signaling candle is closed.
So should we enter after 10 pips or should we wait for the day to finish.
Thanks.
Yes, it means that each candle represents 1 day.
A first daily candle that crosses 5 SMA and closes on the other side of it, is only a signaling candle. Out entry is always going to be next day when we get price making 10 extra pips above (for buy order) / below (sell) the signaling candle.
Regards,
Edward.
Hello,
Which RSI do you use, exponential smoothing or Wilder smoothing?
Regards
It is an exponential smoothing.
Regards,
Edward
Hi,
thanks for this method, but i need help here,how long should someone wait for the extra 10pips to open a position, cos it seems sometimes it takes up to 3-4hrs,would someone wait that long or is there a specific time for the 10pips to be made for the signal to be valid.
Egudu.
Hi Egudu,
you don't have to sit and wait. Use Buy Stop and Sell Stop orders instead.
There is no specific time defined to make those 10 pips happen.
Regards,
Edward
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