Forex Strategy M1 / M5 RSG System

Forex Strategy M1 / M5 RSG System is based on the signals of only two simple indicators Forex: EMA and MACD, but using them several times and on different time frames, we will be getting quite good trading signals for transactions on small intervals, namely M1 and M5.

• Recommended for trading the currency pair EURUSD (you can trade on other currency pairs, but this, in my opinion, is best suited, moreover, all the parameters of the indicators chosen for this particular pair).
• Transactions will be made for the time-frame M5 (Orientation meeting), to conduct preliminary analysis on thethe range M1 ( oneminute ).

And so for the beginning set the following indicators Forex:

1) Time-frame M1:

3 exponential moving averages: EMA (21), EMA (1934), EMA (144) — applied to a close

MACD Histogram (13,21,1) — the color RED

MACD Histogram (21,34,1) — Color Orange

MACD Histogram (34,144,1) — Color Green

Ie obtain a sort of «traffic lights» — red, yellow, green — a signal to transition to the interval M5.

looks like the schedule after installing all the indicators, see below (to enlarge click on image — opens in new window):

Ease of installation indicators — use a template at the end of this forex strategy.

2) Time-frame M5:

the same three exponential moving averages: EMA (21), EMA (1934), EMA (144) — applied to a close

MACD Histogram (21,34,1) — color GREEN!

looks like the schedule after installing all the indicators, see below (to enlarge click on image — opens in new window):

Ease of installation indicators — use a template at the end of this forex strategy.

Please note that all the MACD-histogram signal line is set to 1, so we will be interested as a signal — MACD only the intersections with its «zero line»!

Signals at the conclusion of transactions on forex strategy M1 / M5 RSG System.

An example of the transaction you can see in the picture below:

The author claims strategy, MAX stop-loss is enough to put away 10 points of entry into the market (if it is carried out according to the rules described above). I believe that the best safety stop-loss order placed under the nearest local minimum (for sale) or above the nearest local maxima (for sale).

With stop-loss in 10-point profit target is 30 points!

Or 2 nd option:

Profit target is not set, and exit from the transaction in the following cases:

1) Red or orange MACD crossed its zero line — the conservative way out of the deal!

2) As soon as the EMA (21) or EMA (34) on the time-frame M1 crosses the EMA (144) — moderately aggressive out of the deal!

3) As soon as the EMA (21) or EMA (34) on the time-frame M5 crosses EMA (144) — an aggressive way out of the deal!

Additional rules:

If one of the MACD (at any time-frame) has already crossed the zero line before, and the rest MACD confirmed the signal — it is possible to conclude the transaction, as provided that all the MACD crossed zero line in one direction consistently.

Example:

a) the time-frame M1 green MACD is already above the zero line, while 2 others had crossed the zero line up — safely conclude a deal with the confirmation signal to the M5. But at the same time beware of divergence! — In this case it is better to refrain from bidding …

b) all 3 MACD crossed zero line up on the M1 and the MACD on the M5 is already above the zero line — so it is possible to conclude a deal to buy!

or may be similar to the situation on the sale or other combination of MACD.