MA Cross/RSI Short Term Trading System | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Rsi cross indicator? (NOT cross 50, etc) 44 replies

RSI/2RSI Cross and BB Blast System 40 replies

RSI cross indicator when rsi=50 19 replies

RSI dvergence short term indicator 1 reply

Short Term / Medium Term / Long Term? 3 replies

Attachments: MA Cross/RSI Short Term Trading System
Exit Attachments

MA Cross/RSI Short Term Trading System

  • #1
  • First Post: Jan 1, 2007 7:54pm Jan 1, 2007 7:54pm
Really easy to use-not 100% but what is? Trade it with the Eur/USD or GBP/USD. I haven't tested it with over pairs.

Use the 15min chart.
21 EMA
14 RSI

Go long on a clear cross up on the 21 and a clear cross up over 50 on the RSI.
Go short on on a clear cross down on the 21 and a clear cross down below 50 on the RSI.

That's it!
  • #2
  • Jan 1, 2007 8:00pm Jan 1, 2007 8:00pm
Quoting NewstraderFX

Go long on a clear cross up on the 21 and a clear cross up over 50 on the RSI.
Hum 21 crossing the sky? ;-)
Price crossing 21 EMA?
Sorry for my bad english translation
  • #3
  • Jan 1, 2007 8:01pm Jan 1, 2007 8:01pm
Yeah price-that's what we're trading....
  • #4
  • Jan 1, 2007 8:05pm Jan 1, 2007 8:05pm
Quoting NewstraderFX
Yeah price-that's what we're trading....
Yes, but most of the time, when people say cross, is one indicator crossing the other, not price.

Also, you could have place the 21 EMA on top of the rsi !!!
21 EMA crossing the RSI and RSI crossing 50!!!!
Sorry for my bad english translation
  • #5
  • Jan 1, 2007 8:15pm Jan 1, 2007 8:15pm
Always looking for something to add to or use to modify my system. So please allow me to ask for clarification.

When you are referring to a clear cross of the EMA21 and price, are you referring to the entire candle or bar crossing above or below the EMA, not just part or most of it?

Do you have to have a cross of the EMA and the price and a fresh cross of the RSI across the 50 line at the same time, or is it sufficient that the RSI be in the same direction as your fresh EMA/price cross?
  • #6
  • Jan 1, 2007 8:15pm Jan 1, 2007 8:15pm
Looks good.

Did you do any testing (back/forward)?
  • #7
  • Jan 1, 2007 8:16pm Jan 1, 2007 8:16pm
Can you tell us why it is good?
Unfortunatly, is like anything else...
You should explain when to take trade and when not to take trade.
Good and Bad...

I think is good, but if we take everything, will lose...
Last 2 day were good, but the 13-14dec were less good...

If you can help us look at it it will be great.
Thanks
Sorry for my bad english translation
  • #8
  • Jan 1, 2007 8:52pm Jan 1, 2007 8:52pm
do you wait for bar close? or enter as soon as you see cross



Quoting NewstraderFX
Really easy to use-not 100% but what is? Trade it with the Eur/USD or GBP/USD. I haven't tested it with over pairs.

Use the 15min chart.
21 EMA
14 RSI

Go long on a clear cross up on the 21 and a clear cross up over 50 on the RSI.
Go short on on a clear cross down on the 21 and a clear cross down below 50 on the RSI.

That's it!
  • #9
  • Edited 9:34pm Jan 1, 2007 9:12pm | Edited 9:34pm
Not sure why everyone is giving this thread so much attention. The system isn't really much of a system. The rules were vague. The rules are also nothing special. I could easily say, go long when MACD fast line crosses the zero line from below and short when it crosses from above. It's equally as "important" as RSI crossing above 50. Everyone already knows that.

There is nothing really substantial to the system. He hasn't even mentioned how to exit trades or when to TP.
  • #10
  • Jan 2, 2007 5:34am Jan 2, 2007 5:34am
AS with any system or method-there's always some question of interpetation. No system is perfect or gives 100% good signals, but I trade with 1 simple rule in mind-

I never hold positions with big drawdowns-if you get into a trade based on this and the price or RSI re-crosses, get out. You never want to take any kind of significant loss.

For example-if price crosses the 21 and the RSI crosses the 50 up-you go long. If they happen to recross to the downside soon after the first trade, you're out, but I would hold for a while as long as they don't. It's up to your risk tolerance. You have to fine-tune it to your own preferences.

As to when to take profit-now you're in a territory without answers. Show me a system that predicts when price has reached a maximum-it doesn't exist. Everyone has a level they're comfortable with and it's different for everyone.

It's a very good technical indicator. Use your own risk tolerance and profit performance. Use support and resistance to.
  • #11
  • Jan 2, 2007 8:53am Jan 2, 2007 8:53am
It also tells you when to do nothing-like right now. If you look at the indicator right now-you're too late for a trade and you don't have a new one yet. Knowing when to stay out is just as important as knowing when to get in...
  • #12
  • Jan 2, 2007 12:35pm Jan 2, 2007 12:35pm
It looks like if you were to lock in one or two pips a.s.a.p. like Kolachi suggests and then locking in 5 similar to the SRDC method and then let it run to SAR it might do OK. At least you get a good number of trades.
  • #13
  • Jan 2, 2007 2:57pm Jan 2, 2007 2:57pm
Taking profit is an individual thing-no system can tell you when to take maximum profit from any trade.

What also helps with this system, is knowing the support and resistance levels and correlating the EUR/USD with the GBP/USD. They move together the vast majority of the time and if you correlate the signals between those two pairs, you'll trade better.
  • #14
  • Jan 3, 2007 5:48am Jan 3, 2007 5:48am
Quoting NewstraderFX
Really easy to use-not 100% but what is? Trade it with the Eur/USD or GBP/USD. I haven't tested it with over pairs.

Use the 15min chart.
21 EMA
14 RSI

Go long on a clear cross up on the 21 and a clear cross up over 50 on the RSI.
Go short on on a clear cross down on the 21 and a clear cross down below 50 on the RSI.

That's it!
I just want to add a couple of things here. Noting the support and resistance and waiting for the GBP and EUR to move together makes this system work excedingly well.
  • #15
  • Jan 3, 2007 6:16am Jan 3, 2007 6:16am
I am following this system but i am entering a trade only in the direction of hourly MACD after dicovering the support and resistance areas.

Very profitable system.

Well done NewstraderFX !

Quoting NewstraderFX
I just want to add a couple of things here. Noting the support and resistance and waiting for the GBP and EUR to move together makes this system work excedingly well.
  • #16
  • Jan 3, 2007 6:38am Jan 3, 2007 6:38am
Been there, done that, it'll chop you to death on the 15mn chart when things settle down.
LETS PLAY HOCKEY!
  • #17
  • Edited 11:11am Jan 4, 2007 10:56am | Edited 11:11am
Exactly-when price is ranging and price/RSI are making weak crosses-that tells you to stay out. Putting that together with support and resistance levels is another good indication...
  • #18
  • Jan 4, 2007 11:51am Jan 4, 2007 11:51am
Pipmonster is quite correct, ma chop suey will ensue.
The breaking of a wave cannot explain the whole sea.
  • #19
  • Jan 4, 2007 4:14pm Jan 4, 2007 4:14pm
That's only because you're looking at every cross without regard to support/resistance, currency correlation and how the shape of the RSI looks.

Yes, when price is range trading, price can cross back and forth as can the RSI. When the RSI appears very flat (horizontal) and makes a cross-that's a good indication to not trade, as price is not moving with any strong momentum. That doesn't mean that price will not continue in your favor, but what you're looking for is a stronger movement, which is represented by a more vertical looking RSI. If you wait for those, you'll do well.

Look at the attched chart for an example
Attached Image
  • #20
  • Jan 4, 2007 4:34pm Jan 4, 2007 4:34pm
Hi News,

Quick question, from your previous chart it's shown on 5M chart. Are you more inclined on 5M or 15M?

Thanks for your help. Much appreciated.
0 traders viewing now