SUPER SYSTEM
Overview of the Super System
The Super System is a conservative and flexible trading strategy designed to work across different timeframes, suitable for scalpers, swing traders, and long-term traders. It focuses on providing secure signals by utilizing a set of technical indicators to confirm trade entries. The system aims to minimize false signals and maximize profits through disciplined trading rules.
System Components & Indicators
- Timeframe: Any timeframe can be used.
- Currency Pairs: Major pairs like EUR/USD and GBP/USD.
- Indicators:
- 3 EMA (Exponential Moving Average) set to close price.
- 5 EMA (Exponential Moving Average) set to open price.
- 34 EMA (Exponential Moving Average) set to close price.
- 89 EMA (Exponential Moving Average) set to close price.
- 3 RSI (Relative Strength Index) with levels at 20 and 80.
- Stochastic (5,3,3) with default settings and levels at 20 and 80.
- 14 ADX (Average Directional Movement Index) with +D and –D line only.
Buy Rules
To enter a long (buy) trade, the following conditions must be met:
- The 34 EMA must be above the 89 EMA.
- The 3 RSI must cross above the 80 level.
- The Stochastic must be above its Signal line.
- The +D ADX line must be above the –D line.
- The 3 EMA must cross above the 5 EMA.
- When all these rules are satisfied, a buy trade can be opened.
- Set the Stop Loss below the 34 EMA or the last swing low point.
- Set the Take Profit at double the amount of the Stop Loss, or close the trade when an opposite signal is given by the 3 and 5 EMAs, 3 RSI, or ADX indicators (opposite signal: 3 EMA below 5 EMA, 3 RSI below 20, +D line below –D line).
Sell Rules
To enter a short (sell) trade, the following conditions must be met:
- The 34 EMA must be below the 89 EMA.
- The 3 RSI must cross under the 20 level.
- The Stochastic must be below its Signal line.
- The –D ADX line must be above the +D line.
- The 3 EMA must cross under the 5 EMA.
- When all these rules are satisfied, a sell order can be opened.
- Set the Stop Loss above the 34 EMA or the last swing high point.
- Set the Take Profit at double the amount of the Stop Loss, or close the trade when an opposite signal is given by the 3 and 5 EMAs, 3 RSI, or ADX indicators (opposite signal: 3 EMA above 5 EMA, 3 RSI above 20, –D line below +D line).
This system ensures disciplined trading by strictly adhering to these entry and exit rules, reducing the risk of emotional trading and increasing the probability of profitable trades.