The advanced 5-12 trading strategy - by Kathy Lein

[stream1981]

Hi guys

How are you doing?

I hope everything is going great for you too.

I'm going to introduce you a great profitable trading style which I have earned considerable profits by too.

Firs things first: Risk disclaimer is definitely observed

Read carefully the roles, test it for while on a demo account, and finally trade it just on your own risk.

profitable trades
Good Luck

[stream1981]

Actually, Advanced System X1 is not a standalone trading method, but composed of two different powerful forex trading systems.

Now, let’s just dive right in:

Advanced System X1

If you already read our “10 pips (or more) a day” system, you can see that
System X1 is built upon that methodology. We use Japanese candlestick chart pattern to confirm our signals.

In this system, we use the following components:

1. A 5-period Exponential Moving Average (EMA-5) applied to the Close.

2. A 12-period Exponential Moving Average (EMA-12) applied to the
Close.

3. A 21-period RSI (RSI-21)

4. Bullish/Bearish Engulfing Pattern, Hammer, Inverted Hammer candlestick
Patterns.

Lets get it started guys!

[stream1981]

Entry Rules for Long Trades:

Two conditions must be fulfilled

1. EMA 5 crosses EMA 12 to the upside…and our RSI 21 is more than 50.
2. We’ve got confirming candlestick pattern: Either Bullish Engulfing Pattern
Or Hammer.

Entry Rules for Short Trades:

Two conditions must be fulfilled

1. Enter short when EMA 5 crosses EMA 12 to the downside and RSI 21 is
Less than 50.
2. We’ve got confirming candlestick pattern: Either Bearish Engulfing Pattern
Or Inverted Hammer.

Stop Loss:

For long trades, stop loss should be placed at the nearest support.

For short trades, stop loss should be placed at the nearest resistance.

Exit Rules for Long Trades

Exit the trade when EMA 5 crosses back below EMA 12 or RSI 21 < 50.

Or when price stalls at major resistance, trend line, pivot points, Fibonacci
Projection target.

Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades

Exit our short trade when EMA 5 crosses above EMA 12 or RSI 21 > 50

Or when price stalls at major support, trend line, pivot points, Fibonacci projection
Target.

Or when bullish engulfing patterns or hammer patterns form.

[stream1981]

Trade Examples:

We enter a long trade here because, we’ve got a bullish EMA cross (EMA-5 crossesEMA-12 to the upside), RSI-21 is greater than 50, and a hammer candlestick pattern has formed.

We exit the long trade when EMA-5 crosses back below EMA-12.

[stream1981]

Advanced System X2:

Time frame: Daily

For some reasons, 365-period Simple Moving Average (SMA365) often acts as a price magnet & major support/resistance. I you ask “Why?”, then I don’t know. I just know it works. And we can use it to our advantage for making profits from the markets.

In this system, we use the following components:

1. 50-period Simple Moving Average (SMA-50) applied to the Close.

2. 200-period Simple Moving Average (SMA-200) applied to the Close.

3. 365-period Simple Moving Average (SMA-365) applied to the Close.

[stream1981]

Entry Rules for Long Trades:

Two conditions must be fulfilled;

1. SMA-50 is above SMA-200.

2. We’ve got a bullish engulfing pattern or a hammer pattern form at/or near SMA-65.

Entry Rules for Short Trades:

Two conditions must be fulfilled;

1. SMA-50 is below SMA-200.

2. We’ve got a bearish engulfing pattern or an inverted hammer pattern form at/or near SMA-65.

Stop Loss:

For long trades, stop loss should be placed at the nearest support.

For short trades, stop loss should be placed at the nearest resistance.

Exit Rules for Long Trades:

Exit when price stalls at major resistance, trend line, pivot points, Fibonacci projection target.

Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades:

Exit when price stalls at major support, trend line, pivot points, Fibonacci projection target.

Or when bullish engulfing patterns or hammer patterns form.

[stream1981]

We have a nice downtrend here. SMA-50 crosses below SMA200.

Then price retraces, and touches SMA-65 (the dark blue line). A bearish engulfingpattern then forms. We enter our short trade here.

We exit our short trade when a hammer pattern forms.

There you have it. An advanced trading system for consistently generating pips from the forex market. I hope you enjoy this short publication.

Oh, before I forget, I need to tell you something that I think, will benefit you tremendously. Especially if you’re new to Forex or don’t have time to sit glued to your monitor watching the market 24/7 or if you’re just lazy… (Like me) and want an automated system that requires little work on your part.

[profit]

Can you please explain in a couple of words how is EMA calculated?

[PCMNewsdesk]

Can you please explain in a couple of words how is EMA calculated?

Hello My friend,

I prefer to invite you to the following page on the forum, then I think you'd be enlightened.

How indicators are calculated?

Goodluck

[stream1981]

Hi again,
what's up guys?
I've been so busy to come here and discuss about my ideas and anything that comes to my mind, but now I have some time for it.

I’m going to introduce a unique trading system right here, but I need you to help me with suggestions, comments and anything you could add as an improvement to make it more advanced.

This strategy has been tested and traded in 240 minutes (4 hours) and Daily charts of GBP/AUD, EUR/AUD and AUD/CHF pairs.

Required Indicators:

1. EMA with 5 day period
2. EMA with 12 day period
3. RSI with 21 day period and an included level of 50