95#StochasticRSI Trading System

Chaos and Momentum forex System

Submit by Leonard 13/05/2013

 

SET UP YOUR CHARTS:

1. Open a EUR/USD candlestick chart with a white background.

2. Add a moving average of 7 Exponential, Close. Change the color of the line

to black.

3. Add your Bollinger Band and make the middle line 18 Exponential, Close,

color red.

4. Add another moving average of 50 Exponential, Close, any color.

5. Add your Chaos Awesome Oscillator (or Macd Histogram or Line), then the

Momentum indicator, and then the Stochastic RSI Oscillator (or the RSI and

the Slow Stochastic set at 14,5,3, E).

6. Optional: The Support and Resistance Indicator

 

Here's the strategy:

Going LONG:

Enter a long position when the black 7 EMA has crossed up through the red 18

EMA. At the same time, the Chaos and Momentum indicators should be

approaching or crossing their zero line, going up. The StochRSI or SS should be

coming up from the bottom heading up towards it's 50 line.

Going SHORT:

Enter a short position when the black 7 EMA has crossed down through the red

18 EMA. At the same time, the Chaos and Momentum indicators should be

approaching or crossing their zero line, going down. The StochRSI or SS should

be coming down from the top heading down towards it's 50 line.

When to take your profit:

Simple...when your Chaos Awesome Oscillator turns a different color!

Here's a screenshot of “Trading System ” in the 10 minute chart:

 


In the picture StochasticRSI forex system in action.

StochasticRSI Trading System
StochasticRSI Trading System

Note: Notice how the ema crossovers at the top co-incide with the Chaos

and Momentum and StochRSI at the bottom. However, in the first long

position at 18:10, the StochRSI is in an extended overbought condition

which signifies a very strong bullish trend.

The round circles at the top are the exact entry points when the 7 ema

crosses the 18 ema. The ovals at the bottom are the exit points when the

Chaos turns color.

Notice that the short period between the 1st long entry and the next short

entry is labeled as “whipsaw, stay out”. The Bollinger Bands are narrow

indicating a time of consolidation and potential breakout or breakdown.

The Chaos and Momentum are flat on their zero lines, there is no volatility.

The moving averages are very close together also...you need space

between them for the bigger moves. Do not enter a position during these

conditions, you'll only lose money. Wait for the breakout or breakdown.

Trading System
stochRSI.rar
compressed file archive 811 Bytes
stochasticrsi trading system:Template
stochasticrsi trading system.rar
compressed file archive 755 Bytes

Share your opinion, can help everyone to understand the forex strategy.

Write a comment

Comments: 0