Advanced system #3 (Neat entry: RSI + Full Stochastic)
Submitted by Edward Revy on May 13, 2007 - 15:40.
Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
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Can I know how do you deal with news trading when using this strategy?
From,
Raymond
it is very very good website
Not so much, Grace
but the concept can be definitely borrowed.
Best regards,
Edward
segun, probably you could wait for a break out OR trade range-support/resistance lines will help !
Hi,
Is this strategy good for smaller time frames like 1 hour or 5 mintue
Grace
Please help. what should i do when the prices are going inbetween the trend indicator. I mean during consolidation period.
segun.
Agree that choppiness is expected. I rely on 9 EMA + whenever price touches 150 SMA I'm seeking for patterns like triangles, wedges, simple channels, trend lines on 1-4 hour charts - anything that would help me to sit tight until a breakout.
Best regards,
Edward
Hi "user" I would not trade if the SMA has been being touched by price in both directions. I'd imagine you would begin getting chopped up if you did trade while its ranging in between. Posting a screenshot of the chart you are referencing would help.
Edward , thanks a lot for sharing your strategy . I quite appreciate the the simplicity of this particular one. However, what happens in situations where the trend line indicator is between the prices. Do you trade it or wait fully until price is either above or below the trend line indicator (150sma)
Hi Rebecca,
With EUR/ and CHF/JPY we can still see price coiling in a tight channel (it can bee seen especially well on weekly charts). I'm reluctant to take trades during this time using the Neat entry strategy.
Instead, I'm looking at opportunities to buy at the bottom of a channel and sell at the top if I get a good chance.
Regards,
Edward
P.S. Besides, price has crosses 150 SMA for several times in recent months, which means 150 SMA has lost its significance at the moment (a quite normal factor for long term ranging prices). This should change once we have a new trend.
EUR/JPY and CHF/JPY have made a setup with the open of the market today. Anyone else getting in? Got out of GBPJPY with 100 pip profit, just before reversal. Would love to hear what other people are doing. Rebecca
Sure,
RSI above 70 is enough, while Stoch above 80 is not enough until K% and D% lines cross. Once they cross above 80, it is enough :) , we no longer care about their position in respect to 80 level.
Regards,
Edward
Can I ask again on the point of entry, as you have mention, that RSI and Stoch, go above/below their resprective level, and we enter on the next candle.
Now the question is, when stoch is above/below 30/70, do we need for the K% cross above/below D%, then we enter on the next candle? Or as long as they are below the respective level will do?
Hi all
GBPJPY did indeed close below 9ema. I went short and am up 100 pips 3 hrs. into the new daily candle. I am so thrilled. I have been working at forex for several years now and for the first time truly believe this site is the best there is. Bless you and yours, Edward. Rebecca
Hi Raymond,
I'm trading what I see on the charts, although if news can convince me, I may just go with a smaller trading position first.
Regards,
Edward
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