Trade Setup Signals<\/strong><\/p>\n\n\n\n For lower timeframe short term momentum trading Alerts<\/p>\n\n\n\n \ue00a Initial Trigger \u201calert\u201d as RSI moves above Moving Average Trigger Line<\/p>\n\n\n\n \ue00a Failure to touch outer edge of Bollinger Band on swing Low\/High (possible<\/p>\n\n\n\n Divergence, not shown in the example below)<\/p>\n\n\n\n \ue00a Rising RSI above 50 level for long, below 50 Level for short trade<\/p>\n\n\n\n \ue00a Bollinger Band Centre Line Support<\/p>\n\n\n\n \ue00a Fibonacci Retrace support (where Possible)<\/p>\n\n\n\n In the example given below we have a classic short term momentum setup as all<\/p>\n\n\n\n our alerts come into play. Using the Fibonacci grid as our 4th cross<\/strong><\/p>\n\n\n\n verification entry<\/strong> tool this can also be used as ourinitial stop loss method as<\/p>\n\n\n\n explained below.<\/p>\n\n\n\n Entry<\/strong> may be taken in accordance with the traders personal risk profile and<\/p>\n\n\n\n trade plan, a reasonable risk level is able to be achieved with the use of \u201ccross<\/p>\n\n\n\n verifications\u201d in the traders trade plan, a minimum of 4 cross verifications<\/p>\n\n\n\n should be used to enhance success potential.<\/p>\n\n\n\n Intial stop loss:<\/strong> Possibilities would be a close below the fib retrace at .618,<\/p>\n\n\n\n .786 (not shown) or 100%. Alternative methods normally used by the<\/p>\n\n\n\n trader should also be tested<\/p>\n\n\n\n Trade Management<\/strong>; allow profits to run as RSI pushes through the Bollinger<\/p>\n\n\n\n band outer lines and the trade is managed by monitoring in real time the<\/p>\n\n\n\n relationship between rising price and RSI postion to Bollinger Bands, a closer of<\/p>\n\n\n\n the relationship between the Bollinger Bands and price does not necessary mean<\/p>\n\n\n\n that the momentum has completely stopped, often a breather is taken and the<\/p>\n\n\n\n expansion will continue. Take profits according to your trading risk profile or<\/p>\n\n\n\n use an entry as described below.<\/ins><\/p>\n\n\n\n Exit:<\/strong>Conditons for exit of the trade can be as follows<\/p>\n\n\n\n \u2022 Profit targets met<\/p>\n\n\n\n \u2022 Double top in both RSI (second top inside BB’s) and price action<\/p>\n\n\n\n \u2022 Candlestick formation<\/p>\n\n\n\n \u2022 RSI closes below the MA trigger Line for long trade, above for short<\/p>\n\n\n\n trade<\/p>\n\n\n\n \u2022 Any othe conditions normally used by the trader to exit<\/p>\n\n\n\n The example given is an indication of the potential to develop various trade<\/p>\n\n\n\n plans from using this indicator and users must verify the signals and setups to<\/p>\n\n\n\n there own satisfaction prior to use in the markets. Trading Forex financial<\/p>\n\n\n\n markets is a highly risky business and traders trade at there own risk.<\/p>\n\n\n\n
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