Time frame: 1 day, 1 hour or 30 min.
Currency pair: any.
Indicators:
80 EMA
21 EMA
13 EMA
5 EMA
3 EMA
RSI (21)
Trading rules:
80 EMA suggests a major trend direction.
When the price is traded above 80 EMA – uptrend, opposite for downtrend.
21 EMA and 13 EMA give a current trend direction.
While 13 EMA stays above 21 EMA – uptrend, opposite for downtrend.
RSI (21) above 50 mark suggests an uptrend, below – downtrend.
Entries are made on a cross of 3 and 5 EMA in the direction of a trend:
Buy when 3 EMA crosses 5 EMA upward in an uptrend market AND both 3 and 5 EMA cross a channel of 13 and 21 EMA AND RSI is above 50.
Entry with Sell order when 3 EMA crosses 5 EMA downward in a downtrend market AND both 3 and 5 EMA cross the 13 and 21 EMA AND RSI is below 50.
Note that additional entries are possible when 3 and 5 EMA cross back and then shortly after make a signalling cross again.
Note, that when we get the signal to enter we always wait for the current price bar to close and only then (if conditions nave not changed) - open a position.
Exit rules: when 13 EMA crosses 21 EMA back.
Keep an eye on 80 EMA, also watch RSI 21 to cross 50 point mark again - both will suggest immediate exits.
P.S. For more conservative trading take positions that do not contradict with 80 EMA's trend suggestion.
Happy Forex trading!
Source: http://forex-strategies-revealed.com/
