Forex Day Trading System is a combination of Exponential Moving Average (EMA), Relative Strength Index (RSI), and William% indicators. Interestingly, all of these indicators are available on the MT4 platform so you don’t need to download any of them from other sources.
The 14 and 42-period EMAs crossover to each other for generating the trend-reversal signals. On the other hand, the RSI and Willian% inspect the momentum condition for confirming the trend direction and the trade entry level at the same time. This system applies a 21-period RSI and a 7-period William%.
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Buy Signal Generation with Forex Day Trading System
The 14-EMA moves above the 42-EMA for signaling the bullish trend-reversal of the price. After a bullish crossover pattern is formed, make sure the price holds its position above all the EMAs and testing the moving average levels as dynamic supports.
Next, the RSI should be above 50 confirming the bullish momentum of the market trend. The William% at -80 means the market is in an oversold condition. So, before entering long, make sure the William% level rebounds from the oversold level.
Sell Signal Generation with Forex Day Trading System
For a sell signal, first, the EMAs need to plot a bearish crossover signal. In such a case, the 14-EMA should be moving below the 42-EMA. Secondly, the RSI needs to drop below 50 confirming the momentum condition as bearish.
Finally, the William% value is required to hit the -20 level to confirm the overbought situation of the market. Go short when you get all of the above bearish trend confirmations at the same time.
The Forex Day Trading System is flexible, versatile, and usable for MTF chart analysis. Besides, it uses basic MT4 indicators which are quite is to master.
According to our observation, this indicator can be an ideal trading solution for the newbie day traders who are keen to scalp the market within the correct trend direction.
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