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Envelope Reversal Trading System
This system uses a 15 minute timeframe in all currency pairs. Envelope, RSI and Bollinger Bands are the indicators used in this system with a reference of the EMA.
Forex Indicators:
- 20EMA
- Envelope Set for 15min: 0.10, 0.20, 0.30, and 0.40.
- RSI (9) With Bollinger Bands (15, 1)
Rules for Long Entry:
- Price must be outside the envelopes (0.4).
- RSI must break down Lower band of BB.
- Wait that RSI Breaks up Lower Band of BB.
- Enter at the opening of the next bar.
Rules for Short Entry:
- Price must be outside envelope (0.4).
- RSI must break up Upper band of BB.
- Wait that RSI breaks down Upper Band of BB.
- Enter at opening of the next bar.
Exit Position
Set Profit Target at 20 EMA line, or aggressive at the 0, 10 envelope line.
Stop loss must be at the low (for sell) or high (for buy) of the entry bar.
P.S. This is not a trend following System
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What deviation and shift do we set Envelope at? Is this where I place the 20 in period and MA to Exp?