Some traders prefer medium-term trading; some enter the market every day. The following strategy is suitable for the latter type of traders.
Requirements for the strategy:
- Timeframe: M30, H1;
- Currency pairs: EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/JPY;
- Indicators: RSI (7) with levels at 70 and 30, Stochastic (8, 3, 3) at 80 and 20.
- RSI at 30 or below;
- Stochastic lines have crossed and are at 20 or below;
- Enter once the new candle opens; Stop Loss is placed at 20 points below the minimum of the candle.
Take Profit for EUR/USD, GBP/USD is at 60 points, other currency have it at 40 points. Orders can be transferred to breakeven and closed when the opposite signal occurs.
1. RSI at 70 or above;
2. Stochastic lines have crossed and are at 80 or above;
3. Enter once the new candle opens; Stop Loss is placed at 20 points below the minimum of the candle.
1. It is advisable to close positions before the release of important news;
2. A position is not recommended to be kept open for more than 5-7 hours.
This strategy is good for intraday trading but can also be applied to long-term trading using higher timeframes.