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Cowabunga Forex Trend Following Strategy
This is a trend following system that works on any currency pairs. You can also refer to a 4 hour and 15 minute chart.
Forex Indicators:
- 5EMA, 10EMA,
- RSI (14),
- Stochastic (5,3,3),
- MACD (12,26,9),
if 5 EMA above 10 EMA, trend is up,
if 5 EMA is below 10 EMA Trend is down.
For Buy Entry:
- 5 EMA must cross above the 10;
- RSI must be greater than 50;
- Stochastic must be headed up and not in overbought territory;
- MACD Histogram must go from negative to positive or MACD Histogram must be negative and start to increase value.
For Sell Entry:
- 5 EMA must cross below the 10;
- RSI must be must be less than 50;
- Stochastic must be headed down and not in oversold territory;
- MACD Histogram must go from positive to negative or MACD Histogram must be positive and start to decrease value.
Put SL around 20-30 pips.
Take profit at the ratio of 1:3.
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