This trading system is best for part time traders who do not have time to sit all day in front of the computer system monitoring signals from price movement in the market. It is very flexible and at the same time profitable. The system works best after a fundamental release is launched into the market the previous trading day. This trading system can generate you 30-50% monthly ROI because it helps filter ranging days and minimizes your risk.
Currency pair: Any (Majors preferably like GBP/USD, EUR/USD, USD/CAD, AUD/USD, NZD/USD, USD/JPY)
Indicators: 21 and 55 EMA and Daily Pivot Points
If 21 crosses 55 EMA upward and price of the new market day opens above the Daily central pivot, buy!
If 21 crosses 55 EMA downward and price of the new market day opens below the Daily central pivot, sell!
If 21 crosses 55 EMA upward and price of the new market day opens below the daily central pivot point, then it means no trade.
If 21 and 55 EMA are locked together in a spiral form when new market day opens, then its a no trade as well.
1. Aim for the 1st resistance or 1st support or
2. Aim for 30 pips conservative profit and 60 pips for aggressive profit.
1. Measure the distance of the price of the new market day to the central daily pivot point and use it or
2. use 30 pips default.
Signals that are inline with the general trend have more winning probability.
Signals that have a fundamental backup also has high winning probability.
You can add an oscillator like MACD, RSI or SSRC(stochastic) to the trading set-up to compliment and support the trading strategy more.
Below is a good example of a EMA cross over + daily pivot market open strategy supported by a news release from the BOE Gov Carney Speech.