Forex trading strategy "714"

Trading strategy uses only two indicators as its basis: EMA(7) и RSI (14)hence its name "714". I have been using it for more than 6 months and I believe it is quite a good system. As you know no one can accurately predict price behavior, and I cannot say that my system is excellent and on 100% makes successful signals.

You have to try the system yourself and decide for yourself whether it suits you or not. I use the trading strategy "714" on the EURUSD currency pair on the M15 chart. I can also say that the strategy is good for M30. I can't say how the trading strategy will behave on other currency pairs, because I haven't tried it.

Marketplace: ;
Currency pairsEURUSD;
Timeframe: M15;
Indicators EMA, RSI;
Strategy: trending;
Protective orders: none.

Setting indicators

For work we use trading indicators EMA moving average(7) applies to Close, the RSI(14) indicator applies to Close. I also used a similar indicator EMA(7) with offset 1 (orange) and EMA(7) with offset 2 (yellow). The additional indicators allow you to clearly see the sideways movement when they connect into a knot or line up horizontally.

I also used RSI(7) white - This is also an auxiliary indicator - it allows you to see exactly whether the RSI crossed the 50 level or not.

Trading strategy signals

We open a buy trade when the current candle closes above the EMA(7) and the RSI(14) rises above the 50 level. To sell we use the opposite rule: the candle closes below the EMA(7) and the RSI(14) indicator goes below the 50 level.

Example of using the strategy

To better understand the principle of the trading strategy, you can take a look at the picture, in which the arrows marked the entry to buy (up) and sale (down):

- The green arrows indicate a successful entry.
- The white arrow shows a signal that was not used because the EMAs gathered in a line and showed sideways trend.
- Finally, the red arrow shows a false signal.

As I wrote above: the trading strategy is not 100% successful. I hope that I will have a new idea how to make it more profitable and fail-safe.