
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.
<<Back | Index | Continue>>
Copyright 2006 TradeSTEPS, LLC All Rights Reserved
 |