ZRC
Trading System is trend-momentum strategy.
- RSI 10
- CCI 21
- MACD 12,29,9
- Use of Support & Resistance
Rules
for Entering a Trade
1)
Plot a vertical line at the 1:00 ET candle as shown in the charts.
2) We get a Buy or Sell signal when the signal line (dark green) crosses the 50 level (light green) on the RSI and the signal line (blue) crosses the ZERO level (light green) on the CCI.
3) We must confirm out entry using the MACD Histogram indicator, the Histogram should already be in the direction of the signal or moving towards it.
4) Once we have confirmation from all 3 indicators we enter the trade.
2) We get a Buy or Sell signal when the signal line (dark green) crosses the 50 level (light green) on the RSI and the signal line (blue) crosses the ZERO level (light green) on the CCI.
3) We must confirm out entry using the MACD Histogram indicator, the Histogram should already be in the direction of the signal or moving towards it.
4) Once we have confirmation from all 3 indicators we enter the trade.
How
to identify a "Failed Trade"
If
the entry candle closes in the opposite direction we would consider
it a failed trade.
The trade must be closed if the next candle breaks the range of the previous candle by 2 pips in the negative direction.
We may exit and reverse if our new entry is confirmed by the indicators as per our trade entry rules.
The trade must be closed if the next candle breaks the range of the previous candle by 2 pips in the negative direction.
We may exit and reverse if our new entry is confirmed by the indicators as per our trade entry rules.
When
to "Let the Trade Run"
When
the previous day's range is broken and MACD is indicating strength,
this is when a big move may occur, you must be patient and prepared
to let the trade run until you get an Exit signal on MACD.
Using
MACD Exit
The
MACD exit is used on trending days or when the market is following
one direction, this may occur on days when economic reports are
released or other worldly events which may influence the USD or GBP.
How
to trade "Ranging Days"
We
use the High/Low zones (Red dotted lines) in RSI and CCI to determine
our exit. If the signal line touches or crosses the extreme high/low
zone and returns back we exit the trade. In case of it only happening
on one indicator we use the range of the candle i.e if broken by
2pips for an exit or wait for the second indicator to confirm our
exit. In case the market breaks the range and follows in the
direction of the trade we use the MACD exit.
How
to "Exit for Minimum Loss and Maximum Profit"
1)
We exit the trade if the entry candle closes in the opposite
direction and the next candle follows the same direction breaking the
low/high of the entry candle by 2 pips. 2) To maximise profit we use
MACD exits, this is when the market is trending in one direction and
the MACD histogram opens in the opposite direction.
3) If we get a
strong move in one direction i.e 5 or more candles after entry of the
same colour we may exit at the first opposite candle. Always look at
the indicators for strength before exiting the trade.
4) We exit when the signal line touches or crosses the High/Low zones on RSI or CCI and return back. Incase of it only happening on one indicator, we exit when the next candle breaks the high/low of the previous candle in the opposite direction by 2 pips.
5) We exit when the signal line crosses the 50 level on the RSI and the Zero level on the CCI.
6) In case of no exit signal we wait for the close of 16:30 ET candle and exit the market.
4) We exit when the signal line touches or crosses the High/Low zones on RSI or CCI and return back. Incase of it only happening on one indicator, we exit when the next candle breaks the high/low of the previous candle in the opposite direction by 2 pips.
5) We exit when the signal line crosses the 50 level on the RSI and the Zero level on the CCI.
6) In case of no exit signal we wait for the close of 16:30 ET candle and exit the market.
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