we will mainly discuss signals generated by EURGBP, EURUSD and GBPUSD only because of there corelation and inter dependency of move factors i only trade these three pairs. however sysetem is applicabble to any pair and signals can be dicussed
i could not understand your question, can you explain it little more so that we can make some good logical answer to it
It's not a question but mainly an observation. If entry is based on RSI crossing the 50 level then we will miss other good potential trades. On a good trend, RSI will remain hovering either above or below the 50 level. Sometimes RSI will not cross the 50 level for days.
If RSI bounced back and forth the 50 level, here's what I would do:
After RSI crosses 50 long or short, I would check MACD fast line for momentum before entry. This will avoid potential head fakes. It usually take alot of energy to change a trend.
Long Entry = MACD >= +0.0001
Short Entry = MACD <= -0.0001
thnaks ramrocket for your observation. i beleive this sytem automatically considers all such small observations. it is basically enter on the signal and if it is right ride with it and if wrong exit and control your loss with good money management.
that is what the simplicity of this system is so that if someone is interested to trade two or three currency pairs he can have good concentration level to go on.
you can consider going short in USDCAD at 1.1539 as first trade signal is given by the trend cross and MACD cross.
watch your trade in eurgbo carefully in case of any adverse move indicated by indicators do exit and dont wait than if not than consider going long after the RSI cross of 50 for secong and 3rd trade otherwise wait for the next trade signal
USDCAD trade is on the direction of giving 2nd and 3rd trade signal in next 4-8 hours or so but do watch the indicators carefully for any potential reversal.
Looks to be a very interesting strategy. Only just come across this thread so can't comment more at this stage, but will be keeping up with the goings on a hopefully contributing more as time goes on!!
I spent last night looking at the RSI 45 cross. I think they give a pretty good idea of a trend starting, and simple. Haven't digested the indicators yet. Thanks for the insight. Can't find many original ideas with swing trading. Good job!
I use Oanda..how can I get around level zero (Indicator)..