Simple Balanced System
Joseph
Simple Balanced System
Among Forex trading strategies , this so-called "Simple Balanced System" represents a well thought out and very simple combination of indicators. Knowing which signal to look for with each indicator is a good help to have good entry and exit signals.
Chart : any
Currency Pairs : any
Indicators : EMA 5, EMA 10, Stochastic (14, 3.3), RSI (14, 70, 30)
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Entry rules to buy : Buy when the 5 EMA crosses above the 10 EMA and the Stochastic lines are heading north (up) and the Stochastic is not overbought (above the 80.00 level) and RSI is above 50.
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Entry Rules to Sell : Sell when EMA 5 crosses below EMA 10 and Stochastic lines are heading south (down) and Stochastic is not over-sell (below 20.00 level) and RSI is below of 50.
Exit Rules : When EMA 5 and EMA 10 cross in the opposite direction or if RSI crosses the 50 mark again.
Advantages : it allows the filtering of inputs and, therefore, is more accurate.
Disadvantages : EMAS 5 and 10 can give premature exit signals.
