Forex Soloist Trend Following Strategy
This is another trend following system that is profitable and only uses the combination of EMA and RSI. Advisable timeframe is 1 hour and can be applied to any pairs, but EU, GU and UJ is the most suggested pairs.
Forex Indicators and setup:
- 80 EMA (exponential moving average)
- 21 EMA (exponential moving average)
- 13 EMA (exponential moving average)
- 13 EMA (exponential moving average)
- 5 EMA (exponential moving average)
- 3 EMA (exponential moving average)
- RSI (21)
Trading rules
80 EMA is the reference for major trend direction. When the price goes above 80 EMA, it implies an uptrend and it’s a downtrend when it goes the opposite.
21 EMA and 13 EMA give us a current trend direction.
While 13 EMA stays above 21 EMA – uptrend occurs.
If 13 EMA stays below 21 EMA – downtrend
RSI (21) value is above 50 suggest an uptrend, below – downtrend
Rules for long entry:
- 3 EMA must cross 5 EMA upward in an uptrend market.
- 3 EMA and 5EMA cross a channel of 13 and 21 EMA
- RSI is above 50
- Both 21 EMA and 13 EMA are above 80 EMA
Exit your position when 3 EMA crosses below 5 EMA or RSI is less than 50.
Rules for Long Entry:
- 3 EMA must cross 5 EMA downward in a downtrend market.
- 3 and 5 EMA must cross the 13 and 21 EMA.
- 21 EMA and 13 EMA are below 80 EMA
- RSI is below 50.
Exit your position when 3 EMA crosses above 5 EMA or RSI greater than 50.
Set SL to 20-30 pips depending on the volatility of the pair. Set SL at 30 pips for GBPUSD and 20 pips for EURUSD. This is for 1 hour timeframe.
Adjust SL if you are using other timeframes.
Recommended MT4 Brokers
XM Broker
- Free $50 To Start Trading Instantly! (Withdraw-able Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
>> Sign Up for XM Broker Account here <<
FBS Broker
- Trade 100 Bonus: Free $100 to kickstart your trading journey!
- 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
- Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
- ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
- Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.
>> Sign Up for FBS Broker Account here <<
Click here below to download: