THE FOREX CRAZY CASH TRADING SYSTEM


This is another simple yet profitable trading system. The beauty of it lies in its simplicity of using only two popular indicators: EMA and RSI. I suggest you use 1H, 4H or daily timeframe for this system and it can be applied to any currency pair, my favourite are EUR/USD, GPB/USD and USD/JPY. OK, it’s time to get started now. We will set up the following indicators - EMA(80) EMA(21) EMA(13) EMA(5) RSI(21)


Trading rules

EMA 80 indicates a major trend direction. When the price goes above EMA 80, it implies an uptrend and if it goes opposite – downtrend.

• EMA 21 and EMA 13 give us a current trend direction.

• While EMA 13 stays above EMA 21 – uptrend occurs.

• If EMA 13 stays below EMA 21 – downtrend

• RSI (21) value is above 50 suggest an uptrend, below – downtrend



Entry Rules for long trade

We enter a long trade (buy) when

• EMA 5 crosses above a channel of EMA 13 and EMA 21 in up trend market

• RSI is above 50

• Both EMA 21 and EMA 13 are above 80 EMA


Exit Rules for long trade

We exit our trade when EMA 5 crosses below EMA 13 and EMA 21 or RSI > 50



Entry Rules for Short Trade

We enter a short trade (sell) when

• EMA 5 crosses the EMA 13 and EMA 21 in a downtrend market

• both 21 EMA and 13 EMA are below 80 EMA

• RSI is below 50.


Exit Rules for short trade

We exit our trade when EMA 5 crosses above EMA 13 and EMA 21 or RSI > 50


Stop loss

Stop loss = 100 – 200 pips… depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 200 pips. For less volatile pair, like EUR/USD, use stop loss of 100 pips.




Next, I am going to show you a few sample trades to help you understand more clearly how to use this system


Continue to Crazy Cash System Buy Trade Example E/U 1H ... to be continued