Instruments: The strategy fits all instruments.
Timeframe: M15 and above.
- RSI (11) Levels (35, 65);
- 20 SMA High;
- 20 SMA Low;
- 5 SMA High;
- 5 SMA Low.
When to open long positions:
If 5 SMA High line is above 20 SMA High and the RSI (11) is above 65, a long position can be opened.
When to open short positions:
If 5 SMA High line is below 20 SMA Low and the RSI (11) is below 35, a short position can be opened.
However, if the length of the opening bar is twice the length of the previous bar, positions should not be opened.
Stop-loss: When opening long positions, stop-loss is placed at the level of 5 SMA Low. For short positions, stop-loss is placed at 5 SMA High.
When to exit: For long positions, take profits when the RSI (11) falls below 65. For short positions, take profits when the RSI (11) rises above 35.