Forex trading strategy #5 (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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It is better when it is positive, although it is not a requirement.
Regards,
Edward
Hi
I have been using this system for awhile, it’s simple and works well. I just have a question.
If at day x the candle closes about SMA that means I will be looking for the next candle at day x+1 to be higher than the previous day by at least 10 pip to go long. This is all fine when the day x+1 candle is a bull candle and higher than 10PIPS but would I enter if it was a bear candle but actually spiked up higher at one point more than 10 PIP’s. Hope this makes sense.
Thanks, James
Hi James,
If you had a pending Buy order sitting 10 pips above the bull candle, then on the 10 pip spike it'll be triggered.
At that point you won't know yet that by the end of the day it will actually turn into a bearish candle with the 10 pip spike.
Regards,
Edward
Hello edward and everybody. Just wondering when to exit the trade? are you gonna close the trade daily(by the end of the day) and open new trade again the next day. Maybe anyone can help me. Thanks. Help is really appreciated. Happy trading:)
I would use exit rules from this Midnight trading system.
Regards,
Edward
Dear Edward
Firstly, i wish to thank you so much for such an insightful, helpful, caring, .... site. Thank you.
With the 5x5 system here, you state "price crosses over 5 SMA and makes + 10 pips up the next day", my question is crossing/breaking sufficient or does it have to also close above 5 SMA on the day it crosses it. In other words if price on day x crosses/breaks over 5 SMA up for example, but during the same day closes below it is that sufficient to take a Long if on the following day x+1 prices reaches 10-pips above the high of the previous day?
Yours, Isabel
Thank you for your feedback, Isabel.
It won't be sufficient enough. We need both conditions to be met:
to go Long price must Close above the moving average and remain above it when we enter a trade. Closing below the moving averages means we can no longer plan Long trades the following day.
Regards,
Edward
If open here tomorrow, if RSI> 50 will be valid for signal?
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