foRex OnLine

The final step in the TradeSTEPS4x Method is the actual buying and selling or entry and exit signals. Below are two specific examples of trading rules that you can use to begin your currency trading.

In this example, you will be using some very simple rules to identify entry and exit points.

Buy Rules:

1. Identify a pair that is trending up
2. Buy when the 5 period sma crosses above the 20 period sma.

Sell Rules:

1. Identify a pair that is trending down
2. Sell when the 5 period sma crosses below the 20 period sma.

Here, you can see the green arrow identifying when the 5 sma crosses above the 20 sma. This would be where you would buy the currency pair. You can also see the red arrow that would indicate a selling opportunity.

Here, you can see the red arrow that would identify a selling signal and the green arrow as an exit signal.

The second set of entry rules are similar to the first example with the addition of the Stochastic indicator. This will allow you to have multiple signals within a trend.

Here you can see that the 5 period sma moves above the 20 period sma as indicated by the green arrow on the moving averages. An entry signal shows up as the stochastics line crosses and moves higher as shown with the green arrows on the stochastic chart.

Above you can see the down trend and the red arrows on the stochastic indicator that would indicate a selling opportunity.

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