Advanced System X Forex Method

Advanced System X Forex Method is a trend-momentum strategy with candlestick pattern confirmation.
Advanced System :
Timeframe: 1-hour.
Currency pairs: majors.
We use Japanese candlestick pattern to confirm our signals.
In this system, we use the following components:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) applied to the Close.
3. 21-period RSI (RSI 21)
4. Bullish/Bearish Engulfing Pattern, Hammer, Inverted Hammer candlestick patterns.
Entry Rules for Long Trades:
Two conditions must be fulfilled:
1. EMA 5 crosses EMA 12 to the upside… AND our RSI 21 > 50.
2. We’ve got confirming candlestick pattern: Either Bullish Engulfing Pattern or Hammer.
Entry Rules for Short Trades
Two conditions must be fulfilled:
1. Enter short when EMA 5 crosses EMA 12 to the downside AND RSI 21 is less
than 50.
2. We’ve got confirming candlestick pattern: Either Bearish Engulfing Pattern or
Inverted Hammer.
Stop Loss
For long trades, stop loss should be placed at the nearest support.
For short trades, stop loss should be placed at the nearest resistance.
Exit Rules for Long Trades
Exit the trade when EMA 5 crosses back below EMA 12 Or RSI 21 < 50.
Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target.
Or when bearish engulfing patterns or inverted hammer patterns form.
Exit Rules for Short Trades
Exit our short trade when EMA 5 crosses above EMA 12 Or RSI 21 > 50
Or when price stalls at major support, trendline, pivot points, Fibonacci projection target.
Or when bullish engulfing patterns or hammer patterns form.
Trading examples
We enter a long trade because we’ve got a bullish EMA cross (EMA5 cross EMA12 to
the upside), RSI > 50, and a hammer candlestick pattern.
We exit the long trade when EMA5 crosses back below EMA12.

Related

Trend Forex Strategies 2797350866349784172

Post a Comment

emo-but-icon

item