![]() ![]() The Relative Strength Index must cross or be crossing the 50 level to the upside.The fast EMA (5 EMA) must cross over the 12 EMA to the upside. ![]() We are looking for two things to show up when looking at a buy signal. You can use other technical indicators such as the MACD or Stochastic Oscillator but that is assuming you understand how to use them. The RSI ( Relative Strength Index) will be used to determine the strength of the trend by using the level of “50” as our line in the sand. The exponential moving averages (EMA) are going to be used to determine the trend direction as well as the first buy signal or sell signal for trading We want to keep things as simple as we can when trading and that includes limiting the amount of technical indicators we are using. Technical Indicators Used For This Strategy Time frames that you can use range from the daily chart, weekly chart, and down into the lower time frames for intra-day trading If you are looking for a Forex scalping strategy, you can search this website for one. Scalping is not something I would do with technical indicators but you can test this strategy and see if it works for you. Position trading (there are many advantage to long term trading).The trading strategy we are going to look at can be used as a: Go to price and let that decide your course of action. Price action is always something you want to include in a trading strategy – even a moving average trading strategy – because indicators are simply derived from price. Too much information is not always good (although traders love to learn about the next big thing) and this Forex trading strategy keeps it simple by not including too many moving parts. Technical analysis is a complex subject because there are so many thing that you can learn. Has risk management built into the trading strategy.There are many trading strategies that you can try right on this website. There is nothing easy about trading but that does not mean you can’t have a simple trading strategy for Forex, Futures, Stocks, or any market and one that works if you follow the rules. Never be mislead by the terms “simple Forex trading strategy” thinking that it means easy. ![]()
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