Any Currency Pair
RSI (3) with horizontal lines at 80 and 20
Stochastic (6, 3, 3) with horizontal lines at 70 and 30
Initiate a buy position on a new price bar when the price is above the 150 SMA, the RSI surges below the 20 horizontal line and the stochastic experiences a crossover below its 30 horizontal mark.
Place Stop loss 150 pips away from entry as this is a long term trading strategy.
Exit Strategy/Take Profit:
An investor is free to exit a position when the first stochastic line crosses the other line from above.
From the chart above, it is visible that a buy was successfully triggered on the formation of price actions above the SMA 150. The other indices for this trading system is RSI (3) and the Stoch (6, 3, 3), they bother had their formations below the 20 and 30 horizontal lines respectively. This was a clear LONG entry.
Initiate a sell entry when the SMA 150 is above the price actions or the candlesticks forms below the SMA 150 line. The RSI (3) should be above the 80 mark and the Stochastic crossover is also above the 70 horizontal line.
Place stop loss 90 pips above the entry point.
Exit Strategy/Target Profit:
You can exit positions when the stochastic lines cross below the 20 horizontal lines.
The chart above shows the criteria for our sell entry, as candles were formed below the SMA 150, with the RSI forming above the 80 line and the Stochastic is above the 70 horizontal line.