Simple714

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Simple714

Postby mithetnme » Sat Oct 16, 2010 12:00 pm

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
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Re: Simple714

Postby mithetnme » Tue Oct 19, 2010 3:28 am

Hello

I posted my system "Simple714" on 17/10/10 Sunday. On Monday I got 2 trades using with this system and I want to share how I use my system.

My working hour is from GMT 00:00 to GMT 12:00. YES... I trade 12 hours a day. But never stick to monitor more than 3 minutes. I set a timer for every 15 minutes and whenever timer gives alarm, I just come & check my indicators.

I always starts to check 5 minutes before GMT 00:00. When I checked the price chart, I found candlestick1 already gave an entry signal. Candlestick closed below SMA7 shift2, RSI 14 was below 50 level, RSI 5 crossed over RSI 14 and both RSI 5 & 14 were in down direction.Candlestick2 was doji and RSI mouth opening (angle between RSI 5 and RSI 14) was more wider, it showed the trend could be stronger. But doji sat on BB lower bands. If candlestick2(doji) closed clearly below BB lower bands, I would be more happy. This doji candle and BB mid bands was 16 pips, so I set 16 + 5 = 21 pips for stoploss and I jumped in for short.(Not everytime I set for S/L with BB mid band)

At position 3 SMA7 shift zero crossed over SMA7 shift 2 and bullish candlestick closed above SMA7 shift2. But BB mid band was above SMAs and still going down. So I keep watching until BB mid band touched with SMAs. BB also became to squeeze and it said trend was going to sideway. You can see trend was decreasing its momentum in Area A by BB mid band gradually became flat ... nearly straight line and combined with SMAs.

After end of sideway price go down for 1 candlestick at position 4. I really want to exit at this point because sometimes price goes opposite at the end of sideway before changing to its real direction. But I couldn't say with one candle and keep watching. Right.... price bounced back. I waited for candlestick closed above SMA7 shift 2 again. From position 4 to 5 you can see RSI mouth opening was wider and wider. So I exit at position 5.

At position 6, price closed above SMA7 shift 2 and RSI 14 was above 50 level. Candlestick6 price close and BB upper band was about 15 pips.Not too close. So I enter again.

At position 5 SMA7 shift zero changed its direction and showed to join with other SMAs. And it was nearly GMT 12:00 and my trading hours was nearly over, so I exit at this point 5.

You can see in Area B, BB mid band direction did not change very much , it still looks like nearly flat, (sometimes)it shows price can be (CAN BE) fall down to touch with mid band and rise again to change its direction. I think trend needs to take a rest for a while to save energy before starts its journey (up or down) (in Area C). If I keep riding, I will not exit at this point 5 because RSI 14 didn't crossed down 50 level.

This post is just . . . I just explain about my experience. I will never say somebody or anybody will be profitable if copy or follow this system. When I decide to use this system, I studied price action and indicators reaction for about 6 weeks on demo with no trading. YES..... just watching candlestick and indicators movement. After I got familiar with their action, I started trading with demo for 4 months. I am not in rush. I want to be sure that I can rely on my system.Now I am using it.

As I mentioned in first post, if you found this system interesting, please try to understand the price and indicators relationship, how they are playing. Be sure that you have 100% confidence yourself.

For heavy pips everyday
mithetnme
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Re: Simple714

Postby mithetnme » Tue Oct 19, 2010 3:44 am

Hello

I am really sorry. I made a typo mistake in second post.

"At position 6, price closed above SMA7 shift 2 and RSI 14 was above 50 level. Candlestick6 price close and BB upper band was about 15 pips.Not too close. So I enter again.

At position 5 SMA7 shift zero changed its direction and showed to join with other SMAs. And it was nearly GMT 12:00 and my trading hours was nearly over, so I exit at this point 5."

Please read "At position 7" instead of "Position 5".

Thousand apologies

mithetnme
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Re: Simple714

Postby PKN172 » Sun Feb 13, 2011 6:12 am

Hi mithetnme,
thx for sharing u'r system-strategy. I'wll try then we'll discuss abt it.
thx.

Regards,
Paresh(PKN172)
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