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)
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.
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.
