Forex trading strategy #1 (Simple balanced system)
Submitted by Edward Revy on February 28, 2007 - 14:49.
Current Forex trading system represents a well thought and very simple combination of indicators. Knowing what signal to look for with each indicator, provides a strong tip for good entries and exits.
Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA, Stochastic (14, 3, 3), RSI (14, 70, 30)
Entry rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and Stochastic is not in overbought position (above 80.00 level) and RSI is above 50.
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Hi Edward,
Thanks for replying.Yeah, u r right about this strategy.
it really works as it is,it really doesnt need 100 EMA or any other trend confirmation as the trade signals come pretty "filtered''already with crossover,stocs n rsi.
For exits,however,I prefer to use traling stops than waiting for ema crossovers in opposite direction.i have noticed that they kill half of yr profits if u wait that long. i watch stocs closely throughout the trade, i think stocs give pretty early signals of exits.
I am using it on 30 min chart and it has nt let me down yet.
this is truly a KISS method.
thanks for sharing it
Cheers!
MGirl
Thank you for your feedback and a useful summary, MGirl
Happy trading!
Edward
Hi Edward,
Just curious about the EMA settings. I have Open, Close, High & low settings available. What is the optimal setting for this strategy? Also if you could briefly explain the differences I'd be eternally greatful.
Thanks,
Tim
Hi Tim,
By default absolutely all indicators for all strategies use values applied to Close. If some other settings are being used, it is always mentioned in the strategy.
By default all trading platforms use indicators with values applied to Close. In Metatrader4 we have an option to also use Open, High and Low, but this is just an option :)
The difference is straight-forward - when a price bar is closed we have most adequate and most recent market values comparing to High, Low etc. It is a common default rule - all indicator values are normally applied to Close.
Regards,
Edward
Hi Edward,
You are doing a great job in sharing your forex expertise. Many thanks for that.
This simple strategy look promising and I will try this and will feedback.
Thanks,
Philip, Malaysia
Not sure if anyone said something yet, but wouldn't it just be easier to use a 5/10 macd? since it is based on ema divergence.
Any additional pointers? How we should use the above mentioned MACDs?
Thank you for sharing.
Alex.
Hi
i am new to FOREX trading, however backtesting shows good results. Is there someway to create an alert as this may help not being glued to screen for hours..Any suggestion from experienced traders.
Thanks in advance.
Ssalvank
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