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

Thanks Edward for the reply.
May I ask for your advice on news trading for this? As times, the signal is to go short, but news shows long. Any advice on how to combine both?

Thanks,
Raymond.

Looks like GBPJPY will be closing below 9EMA on 10/27 thus confirming all entry rules to go short. Am I correct in my analysis? Thanks for all you do, Edward.

Hi Raymond,

We need to see Stochastic K% and D% lines crossing below 30 (above 70);
but we don't wait till K% and D% further cross the 30 (70) line itself.

Regards,
Edward

Hi Edward,
Thanks for your reply and explanation. There is something which I like to clarify. For stochastic, do we need to wait for both K% and D% to cross 30/70 level? Because as I'm doing back-testing today, I saw some of the point of D% is slightly below 30/70.

From,
Raymond

Hi Raymond,

1) I didn't look to necessarily invert oversould/oversold levels for Stoch and RSI. I simply took another level for RSI and again another level for Stoch, it just turned to be that those levels are known to be used for another indicator. E.g. levels were picked individually for every indicator.

2) Yes, you can go back to 30/70 for RSI, but the reason why I took 20/80 was because you get fewer signals and they'll be more accurate.

3) RSI(3) is quick to react to market changes. I picked it while testing various RSI settings. Same for Stoch (6,3,3). Here, you may as well use (5,3,3), which is preset for MT4 - results will be the same.

All-in-all, when I take any indicator, I first try to apply it the way it is supposed to be used, but then I never stop on that, while testing, I keep looking for additional signals and clues and indicator may offer, if there is a sequence and a patterns I always develop my own additional set of rules for it and use them to my advantage.

Regards,
Edward

Yes, we've got a signal to go Short according to original strategy rules.

Regards,
Edward

I'll wait for GJ to close below the 9EMA before placing the sell order

Edward,
Just looking at the daily GBP/JPY chart for your Advanced System 3. As I understand it, I should be going short, with a stop of 100. Is my understanding correct ?

Hi Edward,
May I ask in details for this strategy?

1)As I read from the comment that you invert the 20/80 and 30/70 levels on purpose to get more valid signals. Can I know how does it help?

2)If I would like to use back the 30/70 for RSI, is it recommended?

3) Why do you use RSI (3), Stoch (6,3,3)?

From Raymond
raymond.toh(at)gmail.com

Yes, KP

that is a correct entry.

Regards,
Edward

Hello thomas yes my mistake i always forget to copy the link here thanks for noticing that.. cheers

KP

Sorry, KP

you must have forgotten to add a link to your uploaded file here in the comment.
Please try one more time.

Thomas

Hello Edward thanks for the great strategy i have applied your strategy on EUR/USD and i m uploading a screenshot of it. Please let me know if i have entered correctly or i need to work out again to get proper entry. Thanks

KP

Thank you, Dan

You can trade GMT daily candles easily, and basically as you wake up next morning :) or at the midnight when a new daily candle appears, and you've got all signals in place from the previous day, you open a trade.

Regards,
Edward

Hi edward ive been reading through this entire website lol and its really good that your provding all of these stratagies for free for us to learn and use, much appreciated.

anyway i have a question about this strategy ... i live in london and im wondering what is the best time to trade this strategy with the gbp/usd. should i trade at the begining of the next day .. as in midnight ? .. if i have all the correct signals from the previous day

Thanks

Dan