50 SMA Trading | Forex Factory

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50 SMA Trading

  • #1
  • First Post: Jul 6, 2012 9:29am Jul 6, 2012 9:29am
Hi,

This is my first post and I want to share my simple trading system which I have learnt from and webinar, this is quiet simple and effective setup. Hope everyone try out and earn some good profit.

Indicators Used :
1) 50 sma on price
2) RSI - 5 (close) with only one median line 50

Rules :-
Bullish Setup
a) Wait for the 5 Bars to close above 50 SMA and RSI close above 50 for these 5 Bars. Take position on 6 Bar open or lows of the day as you are comfortable.

Bearish Setup inverse of the above description.

Stop loss should be put 1% below or above the previous candle as per trade.
OR Close below 50 SMA for positional traders.
You may get some whipsaws but no system is 100% sure shot.

Remember this is not valid for EOD basis if you are comfortable you can try this on H1 - H4 charts these setup is most profitable of most I have tried.

Some Charts are attached for the reference

Note :-
DO NOT short the pair if it is above 50 sma on Daily and Weekly charts.
DO NOT long the pair if it is below 50 sma in Daily and Weekly charts.

regards
rocky1980
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD - W.PNG Size: 55 KB
Click to Enlarge Name: EURUSD.PNG Size: 26 KB
rocky1980
  • #2
  • Jul 8, 2012 7:21am Jul 8, 2012 7:21am
Quoting rocky1980
Hi,

This is my first post and I want to share my simple trading system which I have learnt from and webinar, this is quiet simple and effective setup. Hope everyone try out and earn some good profit.

Indicators Used :
1) 50 sma on price
2) RSI - 5 (close) with only one median line 50

Rules :-
Bullish Setup
a) Wait for the 5 Bars to close above 50 SMA and RSI close above 50 for these 5 Bars. Take position on 6 Bar open or lows of the day as you are comfortable.

Bearish Setup inverse of the above description.

Stop loss should be...
Hello Rocky 1980,
What timeframe do you trade this system on? And what's ur usual TP
  • #3
  • Jul 8, 2012 7:42am Jul 8, 2012 7:42am
I trade 3 or 4 50sma strat's, all very simple and highly profitable, if you get the money management right...

Just an observation? what if we are in a really strong trend and price stays below the 50sma for a long time? you only get 1 chance to enter?

anyway... good luck with it, backtest it lots and work out the risk model, you should do well
tradewith60
  • #4
  • Jul 8, 2012 9:15am Jul 8, 2012 9:15am
Quoting ayour2a
Hello Rocky 1980,
What timeframe do you trade this system on? And what's ur usual TP
hi
ayour2a

I trade on H4 time frame but i confirm the trend on EOD charts and look for bounce back at 50 sma and price action at that junction. Trades are less but highly profitable. Target profit are usually huge if you opt to hold the position for longer time frame. I consider this an less stressful trading like other system where you need to be at the terminal for long hours.
TP can be considered near to next S/R levels as per trades.

(Note : I do most of my trades on PA with this support of 50SMA this helps a lot.
I also try Naked Trading which is also good in capturing early moves.)


Moreover trading should suit your lifestyle and mindset. One should develop and adapt his own trading setup. Try out each and every setup and tailor it according to your own suitability, you will surely make money.

Hope this answers your queries.

regards
rocky1980
rocky1980
  • #5
  • Jul 8, 2012 9:17am Jul 8, 2012 9:17am
Quoting 60minuteman
I trade 3 or 4 50sma strat's, all very simple and highly profitable, if you get the money management right...

Just an observation? what if we are in a really strong trend and price stays below the 50sma for a long time? you only get 1 chance to enter?

anyway... good luck with it, backtest it lots and work out the risk model, you should do well
I guess one can enter the strong trend in bounce back at 50 sma on EOD basis.
as the trend will be stronger it will bounce to these lines as pullbacks.
rocky1980
  • #6
  • Jul 8, 2012 9:40am Jul 8, 2012 9:40am
Rocky, Thank you for this strategy. I am swing trader 1D timeframe and looking for a simple indicator. What is the best time frame?. Cesar
  • #7
  • Jul 8, 2012 10:29am Jul 8, 2012 10:29am
Quoting rocky1980
I guess one can enter the strong trend in bounce back at 50 sma on EOD basis.
as the trend will be stronger it will bounce to these lines as pullbacks.

Roky.,
Thank you for your trading strategy. What pairs you are going to trade today and at what price please?
Bomi
  • #8
  • Jul 8, 2012 11:36am Jul 8, 2012 11:36am
Quoting 60minuteman
I trade 3 or 4 50sma strat's, all very simple and highly profitable, if you get the money management right...

Just an observation? what if we are in a really strong trend and price stays below the 50sma for a long time? you only get 1 chance to enter?

anyway... good luck with it, backtest it lots and work out the risk model, you should do well
What is your System with the 3 or 4 50sma all about?
Thanks for that if you will give us a closer look to your strategy.
Greeds Zack
  • #9
  • Jul 8, 2012 11:40am Jul 8, 2012 11:40am
Quoting rocky1980
I guess one can enter the strong trend in bounce back at 50 sma on EOD basis.
as the trend will be stronger it will bounce to these lines as pullbacks.
What it is EOD basis?
  • #10
  • Jul 8, 2012 2:30pm Jul 8, 2012 2:30pm
Quoting Flaviu1981
What it is EOD basis?
"End Of Day"-basis
  • #11
  • Jul 8, 2012 10:58pm Jul 8, 2012 10:58pm
Quoting Flaviu1981
What it is EOD basis?
EOD - End of the day (closing)
rocky1980
  • #12
  • Jul 8, 2012 11:05pm Jul 8, 2012 11:05pm
Quoting rocky1980
EOD - End of the day (closing)
thanks!
  • #13
  • Jul 8, 2012 11:09pm Jul 8, 2012 11:09pm
Quoting behman8850
Roky.,
Thank you for your trading strategy. What pairs you are going to trade today and at what price please?
Bomi
Hi
check USDCAD - H4 chart attached

SL close above 10240 close
10053 near term tgt

regards
rocky1980
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usd cad.gif Size: 21 KB
Click to Enlarge Name: usd cad 1.gif Size: 21 KB
Click to Enlarge Name: usd cad trade.gif Size: 21 KB
rocky1980
  • #14
  • Jul 9, 2012 2:39am Jul 9, 2012 2:39am
Quoting rocky1980
Hi
check USDCAD - H4 chart attached

SL close above 10240 close
10053 near term tgt

regards
rocky1980
Thanks for sharing.

Why did you sell when even though the bars are down the RSI(5) has been above the 50 level ?
  • #15
  • Jul 9, 2012 5:00am Jul 9, 2012 5:00am
Quoting rocky1980
Hi
check USDCAD - H4 chart attached

SL close above 10240 close
10053 near term tgt

regards
rocky1980

Thank you rocky .
  • #16
  • Jul 9, 2012 5:22am Jul 9, 2012 5:22am
Quoting rocky1980
Hi,

This is my first post and I want to share my simple trading system which I have learnt from and webinar, this is quiet simple and effective setup. Hope everyone try out and earn some good profit.

Indicators Used :
1) 50 sma on price
2) RSI - 5 (close) with only one median line 50

Rules :-
Bullish Setup
a) Wait for the 5 Bars to close above 50 SMA and RSI close above 50 for these 5 Bars. Take position on 6 Bar open or lows of the day as you are comfortable.

Bearish Setup inverse of the above description.

Stop loss should be...
how long do you trade thise way?
Iam just A pips on the rode :nerd:
  • #17
  • Jul 9, 2012 5:48am Jul 9, 2012 5:48am
Have you tried with smaller timeframes?

Seems interesting. I'll have a look tonight.

Be happy All.

gonso
  • #18
  • Jul 9, 2012 7:56am Jul 9, 2012 7:56am
Quoting gonso
Have you tried with smaller timeframes?

Seems interesting. I'll have a look tonight.

Be happy All.

gonso
But is there anything to beware of.
  • #19
  • Jul 9, 2012 9:16am Jul 9, 2012 9:16am
Quoting cspip
Thanks for sharing.

Why did you sell when even though the bars are down the RSI(5) has been above the 50 level ?
Hi
you are correct but i mostly trade in respect with daily charts and the pair is trading below 50sma also it is trading near its stiff resistance zone. These pull backs are good entry for positional trading and you can add to the positions when pair reaches up to the 50 sma. Rarely you get this entry point at this juncture, USDCAD is not in major bear trend but you can swing trade this pair IMHO. I trade mini lots or micro at times and add up to the position.
At one point or other you have to risk some to earn some

Chart attached for reference

regards
rocky1980
Attached Image (click to enlarge)
Click to Enlarge Name: USDCAD.PNG Size: 46 KB
rocky1980
  • #20
  • Jul 9, 2012 9:27am Jul 9, 2012 9:27am
hi,
Bulls and Bears are completely confused in this pair, also trading near 50% of fibb.

regards
rocky1980
Attached Image (click to enlarge)
Click to Enlarge Name: USDCAD H4.PNG Size: 25 KB
rocky1980
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