Advanced System

In this system, we use the following components:

Timeframe: 1-hour.

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

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

3. 21-period RSI (RSI 21)

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

Entry Rules for Long Trades

:

Two conditions must be fulfilled:

1. EMA 5 crosses EMA 12 to the upside AND our RSI 21 > 50.

2. Weve 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. Weve got confirming candlestick pattern: Either Bearish Engulfing Pattern or Inverted Hammer.

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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, trendline, 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, trendline, pivot points, Fibonacci projection target.

Or when bullish engulfing patterns or hammer patterns form.



By: Aneliya Dimitrova

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