Many forex strategies can be found throughout the Internet, but this strategy is easily understood and if followed as suggested can provide solid profits. This forex strategy is a simple and well thought out strategy which involves a combination of indicators.
The entry rule for this forex strategy is to look for 5 exponential moving averages to cross above 10 exponential moving averages. The stochastic lines must also be in an up, or north, position whilst in a position which shows it is not overbought. The Relative Strength Indicator should be above 50. When all of these indicators line up then a buy bet should be placed to implement this forex strategy.
The entry rule for this forex strategy as a sell bet is slightly different and a trader will look for the 5 EMA to cross below the 10 EMA whilst the stochastic lines are running south. Additionally, the RSI should be below 50. This forex strategy also provides an exit signal which occurs when the 5 EMA and 10 EMA cross in the opposite direction.
This simple forex strategy works on any currency and any time frame. These indicators have proven to be strong indicators that when used as described above increases the chances of a winning trade.