94#Forex Soloist Method Trading System
Submit by Janus Trader (Written by Paul Evans)
This is a simple yet profitable trading system. The beauty of it lies in its simplicity of
using only two popular indicators: EMA and RSI
I am going to use 1H+ timeframe for this system and it can be applied to any currency
pair. I suggest you use it on EUR/USD, GPB/USD and USD/JPY.
OK, it’s time to get started now. We will set up the following indicators
- RSI (21)
80 EMA indicates a major trend direction. When the price goes above 80 EMA, it implies an uptrend and if it goes opposite – downtrend.
· 21 EMA and 13 EMA give us a current trend direction.
· While 13 EMA stays above 21 EMA – uptrend occurs.
· If 13 EMA stays below 21 EMA – downtrend
Entry Rules for long trade
We enter a long trade (buy) when
· 3 EMA crosses 5 EMA upward in an uptrend market
· Both 3 EMA and 5EMA cross a channel of 13 and 21 EMA
· RSI is above 50
· Both 21 EMA and 13 EMA are above 80 EMA
Exit Rules for long trade
We exit our trade when 3 EMA crosses below 5 EMA or RSI < 50
Entry Rules for Short Trade
We enter a short trade (sell) when
· when 3 EMA crosses 5 EMA downward in a downtrend market
· both 3 and 5 EMA cross the 13 and 21 EMA
· both 21 EMA and 13 EMA are below 80 EMA
· RSI is below 50.
Exit Rules for short trade
We exit our trade when 3 EMA crosses above 5 EMA or RSI > 50
For 1-hour timeframe: stop loss = 20 – 30 pips… depending on the volatility of the
currency pair. For more volatile pair, like GBP/USD, stop loss = 30 pips. For less volatile
pair, like EUR/USD, use stop loss of 20 pips.
If you use other timeframes, tweak the stop loss accordingly to fit your trading plan and
your risk tolerance.
Next, I am going to show you a few sample trades to help you understand more clearly
how to use this system.
Share your opinion, can help everyone to understand the forex strategy.