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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Dear Edward,
I found that using ADX (14) along with SMA 150 is helpful to confirm trend direction (strength/weakness)
this way it will give more reliable confirmation to enter a trade.
In other words, if all conditions are met for buy signal (rsi bunged below 20, stoch crosses below 30 and prices are above 150 SMA) I will wait check that ADX is above 25 and DI+ has already crossed DI- or wait until that happens in order to open buy position.
Your view is always helpful.
Regards,
Salem
Dear Edward,
One more question please, what is the best values for SMA to identify the weekly trend. Just by looking at the weekly chart,I found this strategy is very much applicable.
Regards,
Salem
Dear Edward,
Many thanks for your great site and remarkable help. my question is as follow:
If one pair is in uptrend for quite some time (say 4-6 months) and is keep on recording new highs
Do we still go long whenever we have valid setup or is it better to stay out?
I have to say that since I started trading the forex (3-4 years) using may different strategies, I found this is the most efficient and reliable one.
I am very grateful to you for sharing this excellent strategy.
Regards,
Salem
hi edward, I am new to this website, and as a newly started forex trader I must admit that this is a great strategy. Combining it with the 4hr-bollinger bands & a candlestick pattern, it works even better.
Interesting to see that it works very nicely on gold. I have had about 10 live trades on gold, all successful so far (just waiting for that loss to arrive lol) and it looks like with this system I can time entries better.
Thanks a lot guys, keep up the good work.
EH
Hi Jacinto,
RSI was actually reading a bit lower than 20.
I also run MT4 charts parallel to Oanda's to test mt4 indicators,
there RSI went as low as 17.5, so we've got a valid setup.
In case RSI would fail to reach 20, say, it stopped at 21, 22 or above
and reversed, it cancels our trading preparations.
Best regards,
Edward
Hi Edward,
I hope you are doing well.
I would like your opinion on a trade setup, see chart attached.
My question is if the RSI counts as a valid signal since it was only near the 20 line and not below.
Thank you Edward.
Best regards
Jacinto.
Well done, Jacinto.
The settings are correct, except that I prefer 150 SMA instead of EMA.
Entry is also correct.
Best regards and happy trading!
Edward
Hi Edward hope you are doing well,
I attached a chart of Advanced System #3.
Can you please take it a look and tell me if it is a valid long entry?
And also can you please check the settings on the EMA, Stochastic and the RSI to see if i have the correct ones?
Thank you Edward.
Best regards.
Jacinto.
Thank you, Grant
good charts, good trades.
The setup is again inviting to trade, so we'll go in and see.
Best regards,
Edward
I have been looking at Walter's scalping method recently, but always keep an eye on what I know makes money. I did well on the run up to 1.58 using this method. Maybe on the next run to 1.58????
Keep up the good work Edward and company and hope you are enjoying your summer.
Grant
Hi Claude,
Thank you :)
It is quite a task to locate that comment for me too :)
but I'll find it and give you a link here.
Best regards,
Edward
Edward,
Thank you again for all the time and effort you put into this site. (Just wondering: is there anytime left for making money?) Just kidding...
You have mentioned somewhere else your top seven favorite strategies. I just cannot recall where. Would you be kind enough to list them again.
I am about to embark into another Forex journey this fall. (The first one was a total disaster).
Claude
Montréal
Canada
Yes, it is one of the favorite strategies of mine.
Glad you found the right settings.
Best regards,
Edward
Thank you again Edward!
I did not pay attention... I had the standard RSI (14) on. No wonder...
I looked at a few charts and it really does look like it pin points the lows and tops with great precision.
From I read in other post it one of your best strategies, right?
Claude
Hi Claude,
Here is an screenshot:
See how many times RSI got above 80.
Try checking that you're actually using daily charts, RSI 3 and 150 SMA indicator.
You should see lots of entry setups.
Kind regards,
Edward
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