Slow moving averages cross
Current strategy applies the same principles as Strategy #1.
Use time frame and currency which respond the best (1 hour, 1 day… or any other).
Indicators: (multiple of 7) 7 SMA, 14 SMA, 21 SMA.
Entry rules: When 7 SMA goes through 14 and continues through 21, BUY/SELL in the direction of 7 SMA once price gets through 21 SMA.
Exit rules: exit when 7 SMA goes back and touches 21 SMA.
Advantages: again it is an easy set up and does not require any calculations or other studies. Can produce very good results during strong market moves, the system also can be easily programmed and traded automatically.
Disadvantages: System requires periodical monitoring according to a chosen time frame. SMA indicator signal can be confirmed after the current price bar has been fully formed and closed. In other words, when SMA stops changing and the signal is fixed, traders may rely on such information to open a trade.
There are two very different types of traders, one that wins and one that whines. Whiners hardly ever win and winners rarely whine. Trading is a tough business and you have to be able to keep the right mind set to get you through the rough spots. When the markets start trying to knock you off your trading plan and system. Mental strength more than any other one thing will determine your success. You can come back from losing your whole account but you can’t come back from completely losing your faith and confidence in yourself. Your mind must be one of a winning trader . We should not entertain internal or external whining. Keep the faith, stay focused on your long term destination and what it will take to get there. Winning traders take responsibility. Whining traders play the victim. Winning traders take the right entries. Whining traders get in too early or too late and miss the opportunity. Winning traders find a way to make money. Whining traders find an excuse why they did not. Winning traders add value by entering a trading discussion. Whining traders add value by leaving a trading discussion. Winning traders study ten times as much as they trade. Whining traders trade ten times more than they study. Winning traders enjoy the game and the profits. Whining traders enjoy their delusions of the big score. Winning traders build a mentor relationship. Whining traders think they are too smart for a mentor. Winning traders are realistic about their possible returns. Whining traders are delusional about what returns are probable for them. Winning traders are focused on their trading expertise. Whining traders are scatter brained and their style drifts to what they think will work. Winning traders approach their trading as a business. Whining traders approach their trading as a hobby or gambling. Winning is a state of mind as much as a winning process. Whining is trading with the wrong set of mind and feeling like a victim when the error was trading without a good long term process.
The RSI_Slowdown indicator is a powerful VertexFx client side indicator script to identify trend reversals. It is based on RSI indicator and the idea that as price slows down the RSI also slows down and tops (or bottoms) out thus indicating a change in direction.As the price stagnates, the RSI indicator reverses it direction from the overbought and oversold zones. This indicator captures the reversal at these overbought and oversold levels.A bearish reversal occurs when the RSI is above the LEVEL_MAX value and the RSI remains sideways. In such situations it is recommended to exit LONG positions.A bullish reversal occurs when the RSI is below the LEVEL_MIN value and the RSI remains sideways. In such situations it is recommended to exit SHORT positions.
A chart pattern is simply a visual representation of the prices buyers and sellers bought and sold in the past. There is no magic in a chart pattern they just show you what happened in the past and what has a higher probability of happening in the future. A chart pattern can show that a stock is in a range with defined resistance and support. A chart could also show an uptrend of higher highs and higher lows are a downtrend of lower highs and lower lows. The most popular use of chart patterns is for breakout trading signals as the probability increases of a move in a specific direction after a price breakout of a previous support or resistance. Chart patterns can be bullish, bearish, or show a price reversal depending on the direction of the momentum. They can also be used as risk management tools showing where to set stop losses if a breakout fails or set profit targets for a continuation. A chart pattern is a visual tool for seeing which direction a market is moving in.