Forex trading strategy #6 ("Key Simplicity")
Submitted by Edward Revy on February 28, 2007 - 15:49.
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
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I WOULD LIKE TO DO THIS SYSTEM ON A 1HR. CHART? IS THERE ANYTHING THAT CAN BE DONE ABOUT THE FALSE SIGNALS?
great strategy, I´ve started to use it combining it with early bird, in order to avoid big loses. In the demo account and for the moment(useful when you are going to cacht 50 or more pips) the results are very good.
thank you and good trades
Sarah
Barcelona
In my opinion, no changes are needed for 1 hour time frame.
Trading with current rules, however, would require monitoring charts every single hour; plus you should expect more false signals.
Regards,
Edward
Can this system be used with 1H charts? Should indicator values be changed?
Forex charts evaluation is made every new day.
For Long entry we need 5 EMA to cross 12 EMA upwards and RSI indicator readings to be over 50.
In Forex we always evaluate data that have already become a fact, e.g. for graphics it would mean data that has been imprinted on charts and is not going to change. For example, moving averages and RSI here are constantly changing their values while current daily candle is open. Therefore we cannot use those values, instead we look at data from yesterday.
For Short entries, according to yesterday data, 5 EMA must cross 12 EMA downwards and RSI must be below 50.
Exit rules are the same as for entries - original version; or can be adjusted for Long orders - below yesterday low, for Short orders - above yesterday high.
Regards,
Edward
Please be more specific about when you would enter a trade with this system. Also, please explain a little better about the stop-loss that you would use.
men this strategy is fantastic... thank U so much.
Authentic
You have to view Daily charts.
Regards,
Edward
Please, when you say Time Frame: 1 Day which chart have I to view? 5M, 15M, 1H, Daily ...
RSI 21 would be better.
Also take a look at RSI 30. It shows less false crossing through 50 level.
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!
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.
When is the most active time to trade ?
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.
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?
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