Some traders prefer medium-term trading; some enter the market every day. The following strategy is suitable for the latter type of traders.
Requirements for the strategy:
- Timeframe: M30, H1;
- Currency pairs: EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/JPY;
- Indicators: RSI (7) with levels at 70 and 30, Stochastic (8, 3, 3) at 80 and 20.
Buying signals:
- RSI at 30 or below;
- Stochastic lines have crossed and are at 20 or below;
- Enter once the new candle opens; Stop Loss is placed at 20 points below the minimum of the candle.
Take Profit for EUR/USD, GBP/USD is at 60 points, other currency have it at 40 points. Orders can be transferred to breakeven and closed when the opposite signal occurs.
Selling signals:
- RSI at 70 or above;
- Stochastic lines have crossed and are at 80 or above;
- Enter once the new candle opens; Stop Loss is placed at 20 points below the minimum of the candle.
Note:
- It is advisable to close positions before the release of important news;
- A position is not recommended to be kept open for more than 5-7 hours.
This strategy is good for intraday trading but can also be applied to long-term trading using higher timeframes.