EMA, RSI & Stoch Trading System

Forex trading system using Exponential Moving Average, Stochastic and RSI indicator is very simple trading strategy and very popular combination. Every indicator we use in this system gives powerful trading signals that you can use in order to determine trading entry and exit. These trading indicators can improve your profit probability. And here are the indicator settings for this trading system.
- Exponential moving average period 10
- Exponential moving average period 5
- Stochastic technical indicator 14,3,3
- Relative strength index 14 ( levels : 30, 50 and 70)
Trading rules
Buy
Entry :
- Exponential moving average EMA 5 cross up the EMA 10
- Stochastic is moving bullish and should not in overbought area
- RSI is above level 50
Exit
- Exponential moving average move in the opposite direction and 5 EMA cross below the EMA 10
- Stochastic is moving bearish
- RSI is below level 50
Sell
Entry
- Exponential moving average EMA 5 cross down the EMA 10
- Stochastic is moving bearish and should not in oversold area
- RSI is below level 50
Exit
- Exponential moving average move in the opposite direction and 5 EMA cross above the EMA 10
- Stochastic is moving bullish
- RSI is above level 50

You can set profit taking and stop loss levels based on risk and reward ratio, for instance risk : reward = 1 : 2 (at least). And do not forget to set stop loss level !
Or you can use trailing stop in this trading system, you can move the stop loss if your trading position in the direction of the market. This trading system gives you good trading signals with top forex indicators (Moving average, RSI and Stochastic) as your trading filter. Exponential moving average can give false signals sometimes but we have RSI and stochastic trading indicator as confirmation indicator.


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