Check up on this easy forex trading system
This forex trading system use the trend. Each trader has to grasp this rule: “The trend is my buddy”.
Phase 1: MAE
To establish the Development (I name it The Giant Development), We use two shifting average exponential (MAE) :
MAE forty two
Watch out, some forex softwares write EMA (Exponential Shifting Reasonable). Regardless of, an important factor wanted on this forex trading system: Shifting average + exponential.
If MAE 14 > MAE forty two then the Giant Development is Up. That suggests, you need to wait a Lengthy signal. If MAE 14 < MAE forty two then the Large Development is Down. That suggests, you have to wait a Quick signal.
Phase 2: RSI
We use RSI as a result of it’s a forex indicator that observe the Large Development with extra accuracy. It doesn’t provide many false signals when costs perform a little pullback. Our RSI length is 21 on this forex trading system.
Normally, we use RSI only to find little pullbacks, but sometimes it can help me to go out of my day trades. We use it like a pre-signal, we’ll see that later.
Part 3: William’s %R
For us William’s %R is the King of forex indicators. We use it to find the turn point of pullback. One minute, I’ll explain with a simple word. William’s %R shows us when the end of a pullback is near. Did you understand that?
William’s %R value are between [-100 ; 0], but for us, when we write we do [0 ; +100]. Why? We don’t know. May be we don’t like negative numbers for this forex trading system.
When 0 less that or equals to William’s %R < 15 , that means our little pullback is near dead. And at this moment, we open our eyes, and say to the market: “Show us the money!”. It’s only valuable if the Big Trend is Down.
When 85 < William’s %R less than or equals to 100 , and if there is an Up Big Trend, That means the pullback arrived at its end. And we say : “Show us the money!”. For this case we must have a Long Big Trend. Our William’s %R period is 7 in this forex trading system.
Did you see how MAE could help you to find the right direction? RSI showed us the market was Up even if prices did some little pullbacks. And William’s %R showed us the end of the little down trend. Isn’t this a simple and best forex trading system? For some more great systems check BestForexMT4Indicators.com.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.