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Forex trading strategy #6 ("Key Simplicity")

Yes, one look - one hit. A trader can decide on his/her trading plans by a simple 1 second glance at the chart. It is a very simple Forex trading system that is a pleasure to use for traders with a busy schedule.

Strategy requirements:
Time frame: 1 day
Indicators: 5 EMA, 12 EMA, RSI 21
Currency: ANY

Entry rules: Buy when 5 EMA crosses up and over 12 EMA and RSI is above 50. Sell when 5 EMA crosses down and below 12 EMA and RSI is below 50.

Exit rules: exit when 5 and 12 EMA cross again or when RSI crosses back through 50.

FOREX TRADING SYSTEM


Since it is a daily system the logic behind it can be described as simply following the daily trend. Because EMAs are lagging indicators they actually help us in this case. The signaling EMAs' cross appears after a good pause which is just enough for the new trend (if any) to be established.


http://forex-strategies-revealed.com/


i use the same strategy but with a dif time frame i use the H1 , and the rsi 14
and i don t really care about the rsi and mostly i use it before a news report come out and it is working fine for me

Great addition!
Thank you.

What is the suggested stop-loss for this strategy if we use it on a daily chart? Can we use a previous day's range for example?

Absolutely.
It is the most optimal way to determine a stop loss when trading daily charts. I would recommend using a previous day's range for stops + couple of pips on top for this strategy.

Edward.

When is the most active time to trade ?

There isn't any time suggestions for this Forex system as it is traded daily.
However, for example, to see whether a new trade can be opened / closed for the current day, traders need to know what were the results of the previous day close. Thus, when a new daily candle appears on the chart, which is happen at midnight, the earlier you find out about an update the faster you can react on it.

Regards,
Edward.

Hi

Im going to try this system on a 3 hour timeframe (OANDA), a bit more action and decent pips from what i can see! What RSI-value do u suggest on 3 or 4 hour charts, 14 or 21?

Cheers!

RSI 21 would be better.
Also take a look at RSI 30. It shows less false crossing through 50 level.

Regards,
Edward.