Learn Forex Trading, Simple & Easy

Advanced System X is not a single trading method, but composed of TWO different powerful forex trading systems Advanced System X1 and Advanced System X2. Now, let’s just dive right in:

Timeframe: 1-hour.

If you already read our “10 pips (or more) a day” system, you can see that System X1 Is built upon that system. We use Japanese candlestick pattern to confirm our signals.

In this system, we use the following components:

1. 5-period Exponential Moving Average (EMA 5) applied to the Close.

2. 12-period Exponential Moving Average (EMA 12) applied to the Close.

3. 21-period RSI (RSI 21)

4. Bullish/Bearish Engulfing Pattern, Hammer, Inverted Hammer candlestick patterns.

Two conditions must be fulfilled:

1. EMA 5 crosses EMA 12 to the upside… AND our RSI 21 > 50.

2. We’ve got confirming candlestick pattern: Either Bullish Engulfing Pattern or Hammer.

Two conditions must be fulfilled:

1. Enter short when EMA 5 crosses EMA 12 to the downside AND RSI 21 is less than 50.

2. We’ve got confirming candlestick pattern: Either Bearish Engulfing Pattern or Inverted Hammer.

For long trades, stop loss should be placed at the nearest support.

For short trades, stop loss should be placed at the nearest resistance.

Exit the trade when EMA 5 crosses back below EMA 12 Or RSI 21 < 50.

Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target.

Or when bearish engulfing patterns or inverted hammer patterns form.

Exit our short trade when EMA 5 crosses above EMA 12 Or RSI 21 > 50

Or when price stalls at major support, trendline, pivot points, Fibonacci projection target.

Or when bullish engulfing patterns or hammer patterns form.

We exit the long trade when EMA5 crosses back below EMA12.