5 minute Laguerre RSI trading
is a trend momentum strategy based on Two moving averages and
Laguerre RSI as filter.
Time Frame 5 min or higher.
Currency pairs: EUR/USD, USD/JPY,
GBP/USD, USD/CHF, AUD/USD, GBP/JPY
Forex Indicators:
16 EMA, close;
48 EMA close;
Lagurre RSI with level 0.8.
Trading Rules 5 minute Laguerre RSI
trading
Buy
Price above 16 EMA and 16 EMA has
crossed 48 EMA.
Lagueree RSI oscillator above 0.8
level.
Sell
Price below 16 EMA and 16 EMA has
crossed downward 48 EMA.
Lagueree RSI oscillator above 0.2
level.
Place initial stop loss for 5 minute
time frame 20 pips above below the entry point, for 15 min time frame
25-30 pips below/above the entry point, after 15 pips in gain move
stop loss at the entry point.
Profit Target 15-20 pips 5 min time
frame, 20-30 pips 15 min time frame.
Exit position also whe the price close
below/above the 48 EMA.
Trading
Examples
Long Positions
1. AUD/USD pair
In this example, we are going to buy AUD/USD. We see the EMA 16 cuts above the EMA 48 and the Laguerre is above the 0.8 level. We wait for the closing price of the current candle stick stays above the EMA 16 and start to enter our long position.
We enter at 0.8628 level and set up our stop loss level at 30 pips below the entry point at 0.8598. The trade is going up in the favor direction. At 0.8648 which is above our entry point 20 pips, we take profit half of our position. When EMA 16 cuts below EMA 48 and closing price stays below EMA 48, we take profit the rest at 0.8688 and pocket another 40 pips in profit.
Long Positions
1. AUD/USD pair
In this example, we are going to buy AUD/USD. We see the EMA 16 cuts above the EMA 48 and the Laguerre is above the 0.8 level. We wait for the closing price of the current candle stick stays above the EMA 16 and start to enter our long position.
We enter at 0.8628 level and set up our stop loss level at 30 pips below the entry point at 0.8598. The trade is going up in the favor direction. At 0.8648 which is above our entry point 20 pips, we take profit half of our position. When EMA 16 cuts below EMA 48 and closing price stays below EMA 48, we take profit the rest at 0.8688 and pocket another 40 pips in profit.
2.EUR/USD
In
this example, we are going to buy EUR/USD. We see the EMA 16 cuts
above the EMA 48 and theLaguerre is above the 0.8 level. We wait for
the closing price of the current candle stick stays abovethe EMA 16
and start to enter our long position.
We enter at 1.4718 level and set up our stop loss level at 30 pips below the entry point at 1.4688. Thetrade is going up in the favor direction. At 1.4738 which is above our entry point 20 pips, we takeprofit half of our position. When EMA 16 cuts below EMA 48 and closing price stays below EMA 48, we take profit the rest at 1.4778 and pocket another 40 pips in profit.
We enter at 1.4718 level and set up our stop loss level at 30 pips below the entry point at 1.4688. Thetrade is going up in the favor direction. At 1.4738 which is above our entry point 20 pips, we takeprofit half of our position. When EMA 16 cuts below EMA 48 and closing price stays below EMA 48, we take profit the rest at 1.4778 and pocket another 40 pips in profit.
Short
Positions
1. EUR/USD
In this example, we are going to short EUR/USD. We see the EMA 16 cuts below the EMA 48 and the Laguerre is below the 0.2 level. We wait for the closing price of the current candle stick stay below the EMA 16 and start to enter our short position.
We enter at 1.4688 level and set up our stop loss level at 30 pips above the entry point at 1.4718. The trade is going up in the favor direction. At 1.4668 which is below our entry point 20 pips, we take profit half of our position. When EMA 16 cuts above EMA 48 and closing price stays above the EMA 48, we take profit the rest at 1.4628 and pocket another 40 pips in profit
1. EUR/USD
In this example, we are going to short EUR/USD. We see the EMA 16 cuts below the EMA 48 and the Laguerre is below the 0.2 level. We wait for the closing price of the current candle stick stay below the EMA 16 and start to enter our short position.
We enter at 1.4688 level and set up our stop loss level at 30 pips above the entry point at 1.4718. The trade is going up in the favor direction. At 1.4668 which is below our entry point 20 pips, we take profit half of our position. When EMA 16 cuts above EMA 48 and closing price stays above the EMA 48, we take profit the rest at 1.4628 and pocket another 40 pips in profit
2.
AUD/USD
In this example, we are going to short AUD/USD. We see the EMA 16 cuts below the EMA 48 and the Laguerre is below the 0.2 level. We wait for the closing price of the current candle stick stays below the EMA 16 and start to enter our short position.
We enter at 0.8591 level and set up our stop loss level at 30 pips above the entry point at 0.8621. Thetrade is going up in the favor direction. At 0.8571 which is below our entry point 20 pips, we take profit half of our position. When EMA 16 cuts above EMA 48 and closing price stays above the EMA 48, we take profit the rest at 0.8521 and pocket another 50 pips in profit.
In this example, we are going to short AUD/USD. We see the EMA 16 cuts below the EMA 48 and the Laguerre is below the 0.2 level. We wait for the closing price of the current candle stick stays below the EMA 16 and start to enter our short position.
We enter at 0.8591 level and set up our stop loss level at 30 pips above the entry point at 0.8621. Thetrade is going up in the favor direction. At 0.8571 which is below our entry point 20 pips, we take profit half of our position. When EMA 16 cuts above EMA 48 and closing price stays above the EMA 48, we take profit the rest at 0.8521 and pocket another 50 pips in profit.
Below the link for download the 5
minute Laguerre RSI trading MT4 Template and Indicators:
https://drive.google.com/file/d/0Bwjv2Pbf48itYVRFSDBCRXJXSkk/view?usp=sharing
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