Amazing Crossover System - 100+ pips per day!
Greetings everyone,
**I got the main concept for this system on another site. While I have made one important change, I must stress that the heart of this system was created by someone else! We must give credit where credit is due!**
This system is incredibly simple yet unbelievably effective. If you properly follow the system, I strongly believe that you can easily gain 100+ pips per day with very few losing trades!
SYSTEM:
Indicators
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5 EMA -- YELLOW
10 EMA -- RED
RSI (10 - Apply to Median Price: HL/2) -- One level at 50.
TIME FRAME
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1 Hour Only (very important!)
VIEW
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Zoom in quite a bit on your chart so that the candlesticks and EMA's are very large. I use Alpari and this translates into the penultimate (one just previous of the highest) magnification.
PAIRS
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Virtually any pair seems to work as this is strictly technical analysis.
I recommend sticking to the main currencies and avoiding cross currencies (just my preference).
WHEN TO ENTER A TRADE
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Enter LONG when the Yellow EMA crosses the Red EMA from underneath.
RSI must be approaching 50 from the BOTTOM and cross 50 to warrant entry.
Enter SHORT when the Yellow EMA crosses the Red EMA from the top.
RSI must be approaching 50 from the TOP and cross 50 to warrant entry.
I've attached a picture which demonstrates all these conditions.
That's it!
WHEN TO EXIT
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This depends on your trading plan (everybody should have a plan) and money management rules.
Just by glancing at some recent data, the average hourly trend seems to extend beyond 100 pips before reversing.
I recommend setting a T/P between 50 - 100 pips.
S/L should provide plenty of cushion. Most trades will be winners in the long-term, but I'm uncertain of an exact win-lose ratio. Experimentation will yield the best results. I'd start with a S/L of 100 pips.
Remember to always protect your capital. Once the trade moves in your favor by 20 pips, I'd set your S/L to break even. After 40 pips, set your S/L to 20 pips profit, etc.
Of course, you could omit any initial S/L and trade with a smaller contract size to provide plenty of margin, and THEN once the trade moves in your favor set a break even S/L, but that's RISKY (but maybe you are a daredevil)!
NOTES
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Always move your S/L after you are in profit so that you break even.
Aim for 50 - 100 pips per trade.
ONLY USE THE 1 HOUR CHART! DO NOT GO LOWER!
Make sure both the EMA's cross AND the RSI is crossing 50 in the direction of your trade.
When you get both of these signals, you can enter a trade with confidence because these are VERY STRONG SIGNALS. It is incredibly effective at catching the trend for 100+ pips!
I will try my best to test this system and post the results continuously for everyone.
ENJOY!
-ForexPhantom-
**DISCLAIMER**
This post is for academic and entertainment purposes only. Forex trading carries the potential for substantial gains and substantial losses. Any potential losses suffered through Forex using the information in this post is unfortunate, but cannot in any way, shape or form be used against the contributor. I cannot be held liable for any losses suffered on your part in the market. Thank you.
