Riding the trend easily

HERE IS ONE OF MY MANY SYSTEMS THAT I USE WITH GOOD SUCCESS AND THE BEST PART IS IT IS NOT COMPLICATED

INDICATORS:
1. 100 or 150 or 200 EMA OR SMA (its your job to find which works best for you)

2. RSI(3) with levels 80 and 20 OR 85 and 15 (80 and 20 produces more signals and thus more fakeouts while 85 and 15 produces signals and thus again less fakeout)

3 STOCHASTIC OSCILLATOR (5,3,3) OR (6,3,3) OR (7,3,3) OR (8,3,3) {again which ever works best for you}

Time Frame: 5min : not for me maybe for you...
15min : i like it
30min : its nice
1hour : good
4hour : great
DAILY: awesome
Monthly: HOLYGRAIL!!! lol jusk kidding
(yes it does produce fantastic signals but i don't wanna wait year or years for one signal but i would like to tell you one thing for those people who wanna make money really fast this is best time frame it will give you odds better than a casino but you will have to invest all of your money cuz average stop loss 600 pips while aveerage take profit was 2000 pips so this is for the "get rich quick" crowd)

Now back to the point

CURRENCY PAIR: ANY

Will post the rules a little bit later if there is any interest in this thread
also i am managing a open EUR/USD position at the moment...

in the meanwhile you can load the indi's on the chart and try to guess what this system is all about and yes its not my original system i learned it from someone else
back in a hour...

Keep it coming man.

I Love to Learn new things

Waiting.....

I have set the chart and waiting for the rules.

I got the popcorn, charts ready and my trading finger just twiching ready to pull the twiger.

Thanks.

Chango

you can add another 5 or 6 indicators to cluther te screen !!

ENTRY RULES :



Rule no.1 above the Ema or SMA you will only take long positions and below it only short


Rule no.2 RSI(3) should be in overbought region for short trades and in oversold for long


Rule no.3 Entry is at stochastic oscillator crossover in the direction of trend but only those crossovers will be valid that occur in overbought and oversold region...

see pic for example...

trade management rules coming up...

i understand even i am not a big fan of indicators i love price action but u see i have used momentum indicators which a closest to predicting price reversals after of course price action

but if you don't like moving averages you can use trend lines. i'll try to post a pic to explain entries using trendlines

give me some time i'll also post some cases when you have to be carefull while taking a trade but remember higher the time frame better the signals...

daily or weekly should be best

strongly agree

eager to see how you determine exits.

TRADE MANAGEMENT RULES:

Rule no.1 place stop loss at the previous swing low/high if you don't know use fractals

Rule no.2 As soon as price moves 1.5 times of the stop loss the stop loss should be moved to breakeven.

Rule no. 3 If your broker allows closing half of your position when it is in profit then its better to close half your position when 1:1.5 risk/reward ratio is satisfied after that let half your postion run for profit i personally use 1:3 risk/reward ratio for exits works nicely...

Rule no. 4 many times like today when the price range is less i advice you to use 1:1 ratio especially on mondays , last day of month, last of quater, last day of year

Note: The reason i am using stochastic oscillator for entries is because it is a momentum indicator and momentum reversals and price reversal many times occur together but forex is all about having that extra edge and your opinion will matter the most so please make an effort to improve this system one for now i am trying using trendlines instead of moving averages because they lag and will post the results
The only thing this system lacks is letting the profits run cuz sometimes this system achieves 1:5 risk/reward ratio but then we don't know when the price will reverse and i'm thinking break of mini trendlines
well give your suggestions...

Also this system works well on higher time frames cuz there are less fakeouts

me too
i'm trading daily at the moment for long term and 15min for daytrading but i think trendlines will be best thing that could be added to this system that way we could avoid trading in flat markets and go for a ride while the pairs are trending

How you will avoid false entries, signals ? See, please screenshot.

Tomorrow i will add a new scalping strategy

why avoid it?

take the signals, if the market is not moving that way, stop loss.

take the signals, there is no 100% or even 80% correct systems (usually).

Great potential strategy.

Traders who wanna avoid fakeouts can trade bounces of 100 EMA
But you will still get some fakeoouts
Remember money management is the key

Everytime i share my strategy with my trader friends who trade with me i lose money cuz my judgement gets clouded as i get scared that i may get a loss and they may think i suck at trading but then that's very unprofessional so to change that i thought i will post the trades i take on this thread...
in the pic thee are setups that were traded and the ones that were not traded with reasons and one seup i'm about to trade...

Entry Price for latest setup is 1.44110
stop loss is previos swing low 1.43966+spread(2.0)
so total risk is 19 pips therefore take profit is 40 pips using 1:2 risk reward ratio..

THOUGH I WILL BE A LITTLE CAREFUL CUZ THERE IS RESISTANCE AT 1.4438 WILL CLOSE HALF MY POSTION AT 1.4433 IF IT REACHES THAT LEVEL AND THAT A BIG "IF"...

lol the first trade i share on forexfactory and its about to turn into a loser and there it goes stop hit

so total profit today using this system 53-19=34

...interesting to note your 5min ema(50) method was on the opposite side, trading short today. Still, 34 pips up on the day is a good start to your live trade posts.