Stochastic, RSI and EMA

This trading system uses a combination of simple indicators and has clear definition of entry and exit points. It can be used on any currency in any time frame. The four indicators are 5 EMA, 10 EMA, Stochastic (14, 3, 3) and RSI (14, 70, 30).

You enter a LONG position when:

1. 5 EMA crosses 10 EMA from below

2. Stochastic lines are heading north (up) but below 80 level (not overbought)

3. RSI is above 50

You enter a SHORT position when:

1. 5 EMA crosses 10 EMA from above

2. Stochastic lines are heading south (down) but above 20 level (not oversold)

3. RSI is below 50

You exit when 5 EMA and 10 EMA cross in the opposite direction than the entry OR if RSI crosses the 50 level again.

Forex Strategy Articles & News

Featured
Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation