Forex trading strategy is "714"

01 May 2011
Trading Strategy uses basically only two indicators: EMA (7) and RSI (14), it got its name "714". I use it more than 6 months and believe that this is quite a good system. As you know no one can predict accurately the behavior of prices, and I can not say that my system is excellent and 100% makes a successful signals.

You should try out the system themselves and decide for yourself, it fits you or not. I use a trading strategy "714" on the currency pair EURUSD on a chart M15. I can also say that the strategy is good for the M30. I can not say how the trading strategy will behave on other currency pairs, so as not tried.

Market: Forex;
Currency Pairs: EURUSD;
Timeframe: M15;
Forex indicators: EMA, RSI;
Strategy: The trend line;
Protective Orders: None.
Installation of forex indicators

For work use trading indicators moving average EMA (7) is applicable to Close, an indicator RSI (14) applies to the Close. I also used a similar indicator EMA (7) with the displacement of 1 (orange) and EMA (7) Offset 2 (yellow). Additional indicators can clearly see the lateral movement when connected to a node or line up a horizontal line.

I also used the RSI (7) white color - is also an auxiliary indicator - it gives you more to see whether there was cross RSI 50 level or not.
Signals Trading Strategy

We open the deal to buy when the current candle closes above the EMA (7) and RSI (14) rises above the level of 50.For sell is used the opposite rule: candle closes below the EMA (7) and the indicator RSI (14) goes under level 50.
Example of using the strategy

To better understand how the trading strategy, you can look at the picture on which are marked by arrows on the purchase of inputs (up) and sales (down):

- The green arrows indicate a successful login.
- The white arrow indicates the signal that was not used as EMA gathered in line and showed lateral trend .
- And finally, the red arrow indicates a false alarm




As I have already said above: the trading strategy is not 100% successful. I hope that I will have a new idea how to make it more profitable and reliable.

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