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
3. Add your Bollinger Band and make the middle line 18 Exponential, Close,
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:
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.
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.
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.
Share your opinion, can help everyone to understand the forex strategy.