Advanced system #3 (Neat entry: RSI + Full Stochastic)

Thanks very much edward

MSK do you exit on the macd on the closing bar?

Edward & MSK

Thank you, Guys!
I wish you happy trading in upcoming New 2010 Year!

Alex

Hi Alex,

I understand, but no, I haven't tried to add any more indicators, or better to say, I haven't found one to add yet.

MSK suggested MACD, and I think it is one of the options. Thank you for sharing it, MSK!

For me, this is where I simply switch to other strategies.

Best regards and happy holidays everyone!

Edward

I add MACD (3,10,1) into the Daily chart for optimum profit taking. I exit short trade when MACD cross above 0 level and long trade when MACD cross below 0 level. Interestingly, MACD (3,10,1) could also help in entry.

MSK

Hi Edward,

Thank You for your respond and advise about Acc Bands Ind. I'm definitely gonna try it. There is one more thing I wanted to ask you. I hate to add more indicators and I completely agree with you regarding that. But... This is Medium term momentum strategy and normally we are planning to stay in trade 2-12 days. You use 150 SMA to discover Long term trend direction.
Have you ever though to add something to get a clue about next 2-10 days.
Again thank you so much for what are doing here.
Best regards,
Alex

Follow new discussion here: http://forums.forex-strategies-revealed.com/advanced-system-neat-entry-t...

Thomas

Hi Alex,

I didn't want to add any more indicators to this system.
Bollinger bands can be used as a visual aid to observe periods of high and low volatility. Also, when price rockets outside the bands - the trend is in full swing, you can trail a top closer and be ready to exit when the move is over.
In my previous comments I also recommended to use Acceleration bands for the same purpose.
Here is a good reference about Acceleration Bands indicator

Best regards,
Edward

Hi Edward,

Did you try to combine Bollinger bans with this strategy. What is your opinion?
Thanks,
Alex

Sorry, my fault :)
you meant trading without SMA. Right.

150 SMA serves as a filter here. It is probably the main "ingredient" of the strategy. Without it, you'll have many more false buy and sell signals from RSI and Stochastic.

I haven't tried, but if you want to get rid of this Moving average, you'll still need to think of a substitution - an indicator or a method to show you the prevailing trend.

Best regards,
Edward

Hi Edward,
Thanks. What I meant is not using the SMA, and trade whatever signal is given, be it buy or sell.

Hi John,
When price is above 150 SMA you'll be looking for Buying opportunities, when price is below 150 SMA - for Selling opportunities; so yes, you can use SMA to trade in both directions, if that's what you meant.

Best regards,
Edward

Hi Edward,
Is it ok to trade this in both direction without using the SMA?

From
John

Hi Edward,
Mind help me to look at the pic below.

On the pic, the red dotted show the sell entry signal (RSI above 20, Stoc above 30), and we enter on the new candle, which is the yellow dotted line. Is it correct?

Hi,

I've noticed, it is a 4h chart, not daily. Anyway,
the entry should be made later, not on the red or the yellow line.

RSI is above 80 which is good, but Stochastic lines are not crossing yet, Stochastic should be above 30 AND its lines should cross, then it is time to consider trading.
I've noticed there is a moving average on your chart (is it 9 EMA in brown?)
If so, then we'll have a good setup, which will give us a signal on the long bearish candle that closes below 9 EMA (it is the 5th candle after the yellow line on your screenshot). Set a pending order 5 pips away from its low and catch a move down.

To Raymond: news don't affect the strategy performance, since we're trading on daily charts.

Best regards,
Edward