Friday, August 12, 2011

Forex Strategy M1 / M5 RSG System

Forex Strategy M1 / M5 RSG System based on signals from just two simple indicators Forex: EMA and MACD, But using them several times and at different time frames, we will get quite good trading signals for transactions on small intervals, namely M1 and M5. For trade recommended currency pair EURUSD (can be traded on other currency pairs, but this, in my opinion, fits best to the same indicators for all options chosen precisely for this pair).
Transactions will conclude on a time-frame M5, preliminary analysis conducted on the interval M1.
And so for the beginning set the following indicators for Forex:

1) Time-frame M1:
  • 3 Exponential Moving Averages: EMA (21), EMA (34), EMA (144) - Apply to close
  • MACD Histogram (13,21,1) - Color RED
  • MACD Histogram (21,34,1) - Color ORANGE
  • MACD Histogram (34,144,1) - Color GREEN
Ie obtain a sort of "traffic lights" - red, yellow, green - a signal to transition to the interval M5.
looks like the schedule after installing all the indicators, see below.

For ease of installation of indicators - use the template at the end of this strategy.
1) Time-frame M5:
same 3 exponential moving averages: EMA (21), EMA (34), EMA (144) - Apply to close
MACD Histogram (21,34,1) - Color Green!


NoteThat all MACD-histogramsignal line is 1So we will be interested as a signal -- ONLY MACD crossing with its "zero line"!


The signals at the conclusion of the transaction strategy M1 / M5 RSG System.

The author claims that the strategy MAXIMUM stop-loss is enough to put away 10 points from the entrance to the market (if it is made in accordance with all rules described above). I consider what best safety net stop-loss order placed at the next local minima (for sale) or above the nearest local maxima (for sale). When Stop-loss at 10 points, take-profit is 30 points !
Or 2 nd option:
Take-profit is not setAnd exit from the transaction in the following circumstances:


1) Red or orange MACD crossed its zero line -- conservative way out of the deal!


2) As soon as the EMA (21) or EMA (34) on a time-frame M1 crosses the EMA (144) -- moderately aggressive out of the deal!


3) As soon as the EMA (21) or EMA (34) on a time-frame M5 crosses EMA (144) -- aggressive out of the deal!
1 Min
5 Min

Additional rules:
If one of the MACD (at any time-frame) has already crossed the zero line before, and the remaining MACD confirmed the signal - it is possible to conclude the transaction, as provided that all MACD crossed zero line in one direction consistently.
Example:
a) on a time-frame M1 green MACD is already above the zero line, while 2 others had crossed the zero line up - safely conclude a deal with the confirmation signal to the M5. But this DIVERGENCE beware! - In this case it is better to refrain from bidding ...
b) all 3 MACD crossed zero line up on the M1 and MACD on the M5 is already above the zero line - so it is possible to conclude a deal to buy!


Download M1 / M5 RSG System
Download page

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