Forex trading strategy #36 (9 & 100 SMA cross)

I have a similar method like this but a bit different. I usually rely on 200 SMA or 150 SMA for best entry and exit. Although its not 100% assured but in most run, 7 or 8 out of 10 trades are successful in a normal volatile market.

Hi,

Do you mean that even If i use SMA 100 only is reliable to make a trading system?Go long If price close above SMA 100 and opposite for sell?

When i looked at the history, i think its possible=)

regards,
Azim

Hey Azim!

Sorry to reply so late.I too am looking for a simple system to trade:)

To answer your question,I am using RSI(14) but you can spot the divergence no matter what is the interval. The difference will be there.Maybe it will be smaller or larger but you will still see it.

Thanks for sharing the sma14 strategy.it looks really good but since eurjpy has such a choppy evolutions maybe it's better to use smaller timeframes like 15min.will give it a shot later.

all the best,

AlexT

look carefully, 100 SMA is very strong suport!!!!

Exactly like that, Azim

Regards,
Edward

By the way Edward, may i ask you one more question?

I found something interesting on the forum :

He only use SMA14 as his trading method, but does he mean that Go Long when price breaks above SMA14 and Go Short when price breaks below SMA14?

Sorry for asking too many questions, I just want to discover a simple method as possible=(

Azim

Hai AlexT,

May i know what is the setting for your RSI and do u use RSI only for filtering both the entries and for the exits?

Azim

Hello Again Edward,

Thanks for the idea, i really appreciate it;)i will try to apply it on my trading because regarding divergence i am not really a big fan of it since i am not good in it so anyway i will try to learn more on divergence.

Once again Thank you very much edward,

regards,
Azim

Hi Edward,

This is my first post and i am doing it to thank you A LOT for building this website.After learning the basics, this is the best place to get ideas and to build yourself into a very profitable forex player.

In the last weeks, i have tested several strategies form here, and will continue to do so with all the strategies wich you generously expose here, and this one is, until now, by far the most rewarding combined with a divergence with MACD, RSI, stoch or others. I personally prefer RSI.I only use the 1H timeframe.Maybe i will post later some results and some pics but this is enough for my first post:).

Thanks once again for developing this site,

AlexT

Hi Elzeer,

RVI is a Relative Vigor Index.

Regards,
Edward

is there any other name for RVI, I can't find it :(

elzeer

Thanks alot for this

Hi Azim,

it would be reasonable to use a trailing stop and the ZigZag you've uploaded could help you to pick the wings for those stop levels.

What I would recommend to look at is an earlier exit with MACD divergence method.
http://forex-strategies-revealed.com/trading-system-divergence

Basically it'll allow you to exit during times when the market shows the first weakness of a possibly ending trend.
You can also use the same divergence rules on RVI as well.
I've illustrated 2 cases with price & RVI divergence and the Take profit areas wher you would be making a decision to exit.

The thing with exits is that it is rarely a case that one can exit up to a pip with nearly 100% accurate exit. Instead, we always either wait longer to see that the market indeed reversed, so we can exit; OR we can identify a certain price target at which we'll have to close a position no matter what.... Either way it's not the very top or the very bottom of a trend.
Also, we can use trailing stops, as you've mentioned to protect some profits. But all-in-all the skill of exiting a trade lies in our ability to observe the market (with or without the help of indicators) in order to find the early clues of a possible trend weakness. A good method to help us with this is Divergence.

Kind regards,
Edward

SMA = Simple moving Average

Hello RR sory for late reply i didnt realize your comment was there,LOL

anyway the stop loss depends on the pairs..If you use volatile pairs like GBP/JPY, the stop loss might be 50 pips...Lets say if you use GBP/USD your stop loss would be around 30 pips..you should try to test it which suit you

regards,
Azim