The following is a simple trading system that uses only two indicators and has given good results. It can be used in any market, including Forex, precious metals and others. Of course, we recommend that before using this trading system to trade with real money, it must be evaluated on a demo account. You can check our list of Forex brokers to find one that satisfies your trading needs.
This trading strategy uses the following indicators:
- Bar/candles daily chart.
- SMA (Simple Moving Average) of 13 periods.
- 10-period RSI (Relative Strength Index), with a line at level 50.
System rules
Buy signal
-Wait for the daily bar to open above the 13-period SMA. Also, the 10-period RSI must be above level 50.
-The stop loss is placed below the SMA of 13 periods.
-Market exit: This is discretionary, the author suggests using fractals indicator to signal a possible reversal in the trend and/or a trailing stop loss of 50-80 pips.
Sell signal
-Wait for the daily bar to open below the 13-period SMA. Also, the 10-period RSI must be below level 50.
-The stop loss is placed above the SMA of 13 periods.
-Market exit: This is discretionary, the author suggests using fractals indicator to signal a possible reversal in the trend and / or a trailing stop loss of 50-80 pips.
System example
The following image shows a series of examples of trading signals generated by this system:
As you can see, it is a daily trading system, therefore the trading frequency is lower and the trader must be more patient. Also, the potential loss and gain of this trading strategy are higher.
