Forex trading strategy #38 (1D simple strategy)
Submitted by User on July 18, 2010 - 16:36.
Time frame: daily
Currency pairs: any
Indicators: RSI(8), EMA(8)on RSI window, ATR(20)on RSI window, 28EMA on main window, Monthly Pivot
Use the 28EMA to determine the trend direction on the daily chart
Long entry rule
RSI must cross from below to above EMA(8)
Enter when a new candle opens and the RSI is still above the 8 EMA
Short entry rule
The reverse of above.
Stop loss: 75% of the value of the ATR(20)
take profit: use resistant and support of Fibonacci or the monthly pivots (let the profits run).
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
Hi Izack,
you'll find a good description about stop setting with ATR here: ATR indicator.
Kind regards,
Edward
pardon me for my question. i'm new in forex and i dont get it how to set stoploss using ATR. can u tell me how i'm gonna put the stoploss using 75% of ATR(20). i really appreciate it if you can help me. thanks in advance
izack
I can't agree.
On the image we can see that 8 EMA provides a certain smoothed out interpretation of RSI indicator, and definitely not the price on the chart; otherwise 8 EMA on the chart would have a very different curve.
.. or am I missing your point?
Kind regards,
Edward
Edward, I don't think the EMA8 is applied to the "Previous Indicator's Data". Think it's just an EMA. It looks nothing like the image the author provided.
My RSI8 makes a alot of wipsaws over my EMA8... Resulting in a lot of very small profits or even negative trades.. Even when EMA28 is showing a trend... :S
hi edward.
done it. :)thanks a lot for the guide! may GBU ..
Hi,
In MT4 we drag indicators from the Navigator window. To open a Navigator window use CTRl+N or in the menu select "View" -> "Navigator"
The rest goes exactly the way I described above:
1. Drag the RSI to the chart window
2. Drag and drop the EMA indicator in the RSI window (not on the bar chart window). The settings window for the EMA will pop up, where you need to find the line "Apply to:" and set it to "Previous Indicator's Data"
The EMA will be applied to RSI.
There are no other or additional steps needed. Hope you'll be able to do it this time.
Regards,
Edward
hello edward
i still unable to add ema8 to rsi indicator.how do u drag the ema8? sorry for the question.
ATR is used for stops - see stop loss rule.
Hi
What does the ATR used for? why have you included this?
Thank you
John
Hello,
Can this be applied to other time frames?
Peter
To add EMA to RSI:
1. Place RSI first
2. Drag and drop the EMA indicator in the RSI window, after which select
"Apply to: Previous Indicator's Data"
The EMA will be applied to RSI.
Regards,
Edward
Hello thx for sharing you strategy.
How can i add the ema on the RSI indicator on my MT 4 Platform?
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