Combined strategy for the candlesticks and indicators

01 May 2011
Trading Strategy uses not only the technical indicators, but also a model of candlesticks - a hammer and absorption. Для входа в торговлю модель используется как основной сигнал разворота тренда, а индикаторы в свою очередь служат подтверждением того, что тренд действительно развернулся. To enter the trade model is used as the main signal a trend reversal, and indicators, in turn, serve as confirmation that the trend actually reversed.

Market: Forex;
Currency pairs: different;
Timeframe: any;
Forex indicators:
- 5 period exponential moving average (EMA 5), apply to a Close.
- 12-day exponential moving average (EMA 12), apply to the Close.
- 21-period RSI indicator (RSI 21);
Strategy: Depending on the settings of the trader;
Protective orders: StopLoss.
enter to buy:

To open a transaction for the purchase of two conditions must be met:
- The intersection of the EMA (5) and EMA (12) from the bottom up, and RSI (21) more than the level 50.
- We should get candlestick patterns : bullish engulfing or hammer.
enter to sell:

Two conditions must be met to open the deal to sell:
- The intersection of the EMA (5) down to the EMA (12) and RSI (21) is less than level 50.
- At a price graph should be formed candlestick patterns: bearish engulfing or inverted hammer.
StopLoss Protective orders StopLoss

For stop-loss, we choose the previous level of support (for a warrant to buy) or the previous level (resistance for sell).

Exit condition of buy

Leave from the shop, when the indicator EMA (5) cross in the opposite direction of EMA (12) or RSI (21) falls below 50. Or when there will be a model bearish engulfing or model of the inverted hammer or other models of the bullish trend reversal.

exit conditions for sell

Leave from the sales when EMA (5) cross in the opposite direction of EMA (12) or RSI (21) rises above the level 50. Or when you are bullish engulfing pattern or model of the hammer or other reversal of bearish trend.

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