How to Become A Successful Forex Trader with an easy simple trading system. Forex Stochastic Oscillator-RSI Trading System With PBF Fast 3MA and Kijun-Sen Ichimoku Indicator is a high accuracy but very simple trading system.
The Stochastic Oscillator is a two-line indicator that fluctuates between 0 and 100.
The Stochastic Oscillator (8,3,3) – The indicator shows how the current price compares to the highest and lowest price over the look back period. The look back is 8 periods; on a weekly chart that is 8 weeks, on an hourly chart 8 hours.
- When the indicator is near zero it shows the price is trading near or below the lowest low during the look back period.
- If the indicator is near 100, the price is trading near or above the highest high during the look back period.
Above 50 and the price is trading within the upper portion of the 8-period range; below 50 and the price is trading in the lower portion of the 8-period range.
RSI (Relative Strength Index) – is counted among trading’s most popular indicators. This is for good reason because as a member of the oscillator family, RSI can help us determine the trend, time entries, and more.
RSI was developed by J. Welles Wilder, Jr. and published in a 1978 book, New Concepts in Technical Trading Systems, and in Commodities magazine (now Futures magazine) in the June 1978 issue. It is a momentum oscillator and as such, it measures the rate of change of a given security’s price. Since it is also a bounded oscillator, it allows spotting overbought and oversold areas on the price chart.
Forex Stochastic Oscillator-RSI Trading System With PBF Fast 3MA and Tenkan-Sen Ichimoku Indicator is a Trend-momentum Trading System.
- Best Time Frame: 30 Minutes or higher
- Recommended Currency Pairs: EURUSD, GBPUSD, AUDUSD, …and all major pairs
- Stochastic indicator (8,3,3)
- RSI (8 periods)
- PBF Fast 3MA
- Tenkan-Sen Ichimoku
- Signal Trend
The system was designed to run on the M30 or higher timeframes.
- Up BLUE OBOS arrow appears below the chart
- RSI (8) upward above the level 50 line
- Stochastic Oscillator (8,3,3) upward from oversold area (the price is near or below the lowest low during the look back period) and they are above the level 20 line
- Price above Tenkan-Sen Ichimoku
- PBF Fast 3MA line upward (AQUA line above blue line)
- Signal Trend green bars
- Down RED OBOS arrow appears above the chart
- RSI (8) downward below the level 50 line
- Stochastic Oscillator (8,3,3) downward from overbought area (the price is near or above the highest high during the look back period) and they are below the level 80 line
- Price below Tenkan-Sen Ichimoku
- PBF Fast 3MA line downward (AQUA line below blue line)
- Signal Trend red bars
- Buy Exit Rules:
- Down arrow appears on the chart
- The black Stochastic line has crossed below the lime Stochastic line and the Stochastic lines are falling below the level 80 line
- SELL Exit Rules:
- Up arrow appears on the chart
- The black Stochastic line has crossed above the lime Stochastic line and they are moving above the level 20 line
How to Become A Successful Forex Trader and Make BIG Money ?… The answer is “Avoid Trading Too Aggressively” – Trading too aggressively is perhaps the biggest mistake new traders make. If a small sequence of losses would be enough to eradicate most of your risk capital, it suggests each trade has too much risk.
One of the reasons that new traders are overly aggressive is because their expectations are not realistic. They think that aggressive trading will help them get rich quickly.
However, the best traders make steady returns. These profits can become very large over the years, through the power of compounding. But you cannot get compounded returns if you quickly blow up.