Forex System - Sell Signal Rules and Buy Signal Rules

Forex System, what is system?

· What is Strategy

· How to Create a Systems

· Writing Forex Strategy Rules

· Generating Signals

· Tips for FX Strategy

· How to Write Forex Trading Journals.

Sell Signal

So the above is a system, simple forex system that is a combination of two indicators.

1. Moving Averages- 2 moving averages are used to form the MA crossover system. This crossover system generates signals when the two MAs cross over or under each other.

1. RSI - RSI crossover over Center-mark, 50 level mark, generates either a buy or sell signal.

1. You'll also require to learn how to draw trend lines like the ones above so as to know when a trend is broken and when currencies movement are about to change.

Sell Signal Rules - Forex system

To generate a sell signal we use the following signals

Moving Average moving downwards

RSI below the 50 center mark

For This system you would have placed the take profit at the support line where the price of the currency reached before pulling a retracement.

Buy Signal Rules - forex system

To generate a buy signal we use the following signals

Moving Average heading upward

RSI above the 50 center mark

Buy Signal

A system is a good method to generate signals & although the above example look simple trading the above signals in real time will take a lot of time before you can start to trade with the ease that profitable traders trade with. So take some time to practice the art of executing your trade signals that you generate from your trading system.