3 Parameter Strategy is a very powerful strategy based on 3 indicators.
This strategy works best with Daily Candlestick Charts It can be traded with different styles of entry and exit.
Instruments
Futures
Cash
Indicatos Used:
Bollinger Band
MACD
RSI
評論
Strategy Rules
All 3 parameters must be matched for the Bullish as well as Bearish moves.
Bullish (Buy Trade)
Bollinger band must be squeezed as compared to the previous band width and the candle must be closed with the breakout of the upper band. The breakout must be genuine when the upper band cuts through the body of the candle.
MACD has a bullish crossover of the range or at the point of the signal candle.
RSI must be greater than 60. (RSI > 60)
Bearish (Short Trade)
Bollinger band must be squeezed as compared to the previous band width and the candle must be closed with the breakdown of the lower band. The breakout must be genuine when the lower band cuts through the body of the candle.
MACD has a bearish crossover of the range or at the point of the signal candle.
RSI must be less than 40. (RSI < 40)
評論
Trading Rules
Enter at the open price on the next trading session.
Stoploss for aggressive traders: Low of the signal candle on closing.
Stoploss for positional traders: Below to the 20 periods of simple moving average on closing.
Method1: Exit on the 3rd trading session at closing.
Method2: Exit with the trailing stoploss.
Futures:
Set a target of Rs 15000 and place a stoploss of Rs 5000