Hello
I here want to share a simple trading system. I have been using it for more than 6 months and I believe it is a quiet good system. I use only three simple indicators, SMA7 (Close), RSI 14 and Bollinger Band. Bollinger Bands is just for trend direction. I got an Entry Signal when price closed above or below SMA7 and RSI above or below 50. I use three SMA7 (shift zero, shift 1 & shift 2) to easily see the candlestick close. Besides this, SMA7s twisted together or compressed to single line during sideway.
I use RSI 5 to RSI 14 (total 10 lines) to clearly see that RSI 14 cross over 50 level line. If price closed above or below SMA7 shift 2, RSI 5 crossed over 50 and RSI 14 left behind 50, it means the price does not keep going, it can go back to opposite direction (but not 100% correct).
In attached image, I show 14 positions that candlestick closed above or below SMA7 shift 2. From position 1 to 7, it's a sideway or very shallow down trend (wedge trend pattern), it was not good for entry. But I entered at these points like scalping, I stayed only one bar and then exit. Position 1 was loser (10 pips) but from 2 to 7 total I gained 50 pips. After minus spread, I got about 30 pips during sideway. But its a very dangerous trading. If you like, try with demo till you get sound experience. Position 8, 11, 13 and 14 were very good entry point to get heavy pips.
Position 9, 10 and 12 were not for entry. Although price closed above or below SMA 7 shift 2 and RSI 5 crossed over 50, RSI 14 stayed behind 50. You can clearly see RSI 14 was behind 50 because I use total 10 RSI lines. At these points, price was not going to breakout the trend.
As you know, in Forex Market, nobody can predict exactly the price action. I am not saying that my system is an excellent and 100% sure fire one. It depends on market condition and trader's decision. If you found it interesting, please try with demo account for not less than 3 months for getting very sound experience. Please make very clear with SMA7 and RSI indicators action.
I normally use this system with EURUSD M15. I think it is also good for M30. But I haven't tried with other currency pairs yet and I can't say about it.
By the way, I called it "Simple 714"because I used SMA 7 and RSI 14. You call it whatever you like. If you like, use it. If you don't, just forget it.
Hoping to get some more new good idea . . . . . . . . .
For heavy pips everyday
mithetnme