trading logic. the strategy take position on short term trend on 30
MN EURUSD charts .if price is above 55 period EMA uptrend it look for
buy and if price is below 55 period EMA the trend is down and it look
for sell
this are the setups.
in order to take a buy or Sell trade the strategy check for pullback
on 5mn chart and use the indicator RSI 14 period .if trend is up on 30
minutes EURUSD chart and the rsi 14 period on 5 minutes chart move
below 30 and go above buy order at market is triggered
if trend is down on 30 minutes EURUSD and the rsi 14 period on 5 min
charts go above 70 and move down 70 a sell order is triggered
i use a take profit of 50 pips and Stoploss of 25 pips in order to
have a good risk reward ratio of 2;1 and limit my loss
i use a constant lot of 5 millions in order to avoid great drawdowns
in ranging markets .
this STRATEGY USE EMA TO IDENTIFY TREND ON 30 MIN CHARTS . AND USE RSI
TO ENTER BECAUSE IT IS AN OSCILLATOR USE TO SPOT PULLBACKS .