This system is based on Metatrader charting. The tools needed are the following:
15 min EUR JPY chart
SMI [STOCHASTIC MOMENTUM INDEX by William Blau] First indicator window (Settings: 14,10,14,5) (Levels:+40,-40,0
Stochastic Oscillator [This one in the second indicator window] (Settings: 10,1,7)Price field: close (MA method: simple (Colours: Main: Magenta and in signal type in none.)Levels: 20,50,80
MA cross_over signal [arrow] (Settings 5,6)
VQ [Volatility Quality] indicator by Raff (Setting:time frame 0 ) (length 5,method 3,smoothing 3,filter 3 ) This indicator must be dragged from your navigator window down to your first indicator window where your SMI is situated.
Insert a 60 and 200 EMA on price chart.
From 7am GMT you can start looking for the following:
**Buy or long,**the SMI must either be curling up from -40 or the Zero lines, the MA signal[arrow] must show on your chart and Heiken Ashi candle must be white.
VQ will show an arrow in the indicator window. Stochastic Oscillator must have moved up from the 20%line. Take profit when the SMI hits the +40 line or the candle hits the 60MA. Could be 30 to 50 pips.
For short or a sell, the SMI must be moving down from +40 line, stochastic must also be on its way down from 80% line and arrow of VQ and arrow of MA must have appeared.
Heiken Ashi must have turned red. Take profit when SMI hits the -40 line or a candle hits the 60MA. Another 30 to 50 pips.
Practice this first on a demo and check the TREND on the 1hr and 4 hr charts. Also check where the daily pivot levels are.
The daily pivots are support and resistance levels than can cause a reversal of trend. Take profit at these levels. You can always re-enter if it breaks through and opens a new candle above or below the pivot levels.
I trade this method personally on the EUR JPY pair 15 min chart,and bag 100 pips average a day.
Please be aware of the risks of forex trading.
I suggest this system for day traders that already have some basic knowledge of forex trading.
In the pictures Simple 15 min forex system in action.
Download Template And Indicators
Simple 15 min system.tpl (3.8 KB)
StochasticMomentum.ex4 (3.9 KB)
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