Monday, June 20, 2011

Simple Balanced System - Modified

Indicators:
1. Parabolic SAR
2. EMA 5, 10
3. Stochastic (14, 3, 3)
4. RSI (14, 30, 70, 50)

Trade Plane:
1. Look for a new Parabolic SAR formation. When the 1st dot appears, look for the crossing of EMA 5 & 10.
2. If both 1st dot of SAR and EMAs crossing happens at the same time, look at Stochastic and RSI.
3. Stochastic must be either moving up or down. Just make sure it is not in the over bought or over sold area.
4. RSI must be below or above 50.
5. If all those conditions above happens at the same time when the 1st dot appears, enter the trade.
6. Set Fibonacci Expansion as profit target.
7. Set SL at the resistance/support level.

I will include the examples later on.

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