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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With MACD it would be an overload.
I'd also love to have an EA or alerts for it. anyone?
i really appreciate ur system.
Ed, Let me first complement you on your unselfish act in teaching new traders. I checked out most of your strategies. I am still deciding as to the best possible approach. I am interested in trading GBP/USD. I prefer 1 hr timeframe. I can only trade during Asian session (7PM to 11PM EST). I am anxious to hear your recommendation. Thank you. KPK
i will try ur strategy as u tell me wish me luck
Hi KPK,
trading GBPUSD on hourly charts from 7 to 11pm EST is, to be fair, very unpromising.
If you cannot trade during London and New York sessions, it is better to start looking at daily strategies.
In order to profit from currency fluctuations we need the market to move, and not just idle back and forth, but create a trend; during the Asian session conditions for this are not favorable.
Best regards,
Edward
Hi Edward,
Thanks for the hard work. Can I know if there is any re-entry rules? And also how have you use this together with fundamentals trading?
Thanks,
Raymond
Hi Raymond,
there will be no re-entry rules here.
I'm not against fundamental studies, but I don't see a real practical application of it (direction, filters, signals) for this particular strategy.
Best regards,
Edward
Edward, as you were saying that Stoch should not be in the oversold/overbought region. Do you refer to both K% and D% entering the region together, or if one of them enter the region and still consider a valid setup?
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