ERASMUS FOREX INSTITUTE (EFI) Strategy Summary WWW.FOREXEFI.CO.ZAEXPLANATION OF THE STRATEGY MOVING AVERAGES (MAs) * are used primarily as trend indicators and also identify support and resistance levels. The two most common MAs are the simple moving average (SMA), which is the average price over a given number of time periods, and the exponential moving average (EMA), which gives more weight to recent prices. + moving averages are used to gauge the direction of the current trend. + EFluses a Simple Moving Average with a PERIOD of 12 & SHIFT of 0 CSM Ti Wael DONE PARAMETERS Period 12 Shift 0 Method Simple Apply to Close STYLES Style 3 pixel Oo LEVEL Levels o Figure 1: Show the Moving Average with its input. Www.Forexefico.za ERASMUS FOREX INSTITUTE EFINB>>>>12 MA ONLY WORK ON 4 HOURS (H4) CHART AND DAILY (D1) CHART ON THE LAST CANDLE STICK FORMING OR SECOND LAST CANDLE THAT JUST FORMED. 2. When an H4 or D1 Candle Stick (RED Candle) CLOSES BELOW the MOVING AVERAGE, Is a SELL or when a MA passes through a candle stick. Www.Forexefi.co.za ERASMUS FOREX INSTITUTE EFIEXAMPLE OF SELL COMBINED. t r f & © B aaa (24.180 124.587 124.171 124,302 ete eras eet eSELL laa | i eee aks nee mss IN eee Ea aS 3 eae PAE orexefico.za ERASMUS FOREX INSTITUTE EFIBOLLINGER BAND. + As the name implies, Bollinger Bands are price channels (bands) that are plotted above and below price. + They can be used to read the trend strength, to time entries during range markets and to find potential market tops. + They have three (3) lines: The UPPER, MIDDLE and LOWER lines. + The outer Bollinger Bands are based on price volatility, which means that they expand when the price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends. + EFluses BOLLINGER BANDS with a PERIOD of 20, DEVIATION of 1.000 and a SHIFT of 10. cme) Tare Csr DONE PARAMETERS Period 20 Deviation 1.000 Shift 10 Apply to Close STYLES Style 3 pixel | | LEVEL Levels oe Www. Forexefico.za ERASMUS FOREX INSTITUTE EFIUD 1.83560 1.83799 1.83556 1.83750 wat area eared WET ES 1 * When the candle sticks are BELOW the BOLLINGER BANDS Lines, it gives a SELL signal fi ERASMUS FOREX INSTITUTE EFIENVELOPES + Are technical Indicator is formed with two Moving Averages, one of which is shifted upward and another one is shifted downward. The selection of optimum relative number of band margins shifting is determined with the market volatility: the higher the latter is, the stronger the shi + PERIOD is 12, SHIFT is 0 & DEVIATION is 0.100. + Envelopes define the upper and the lower margins of the price range. Signal to sell appears when the price reaches the upper margin of the band; signal to buy appears when the price reaches the lower margin. + Envelops have a similar interpretation of Bollinger Bands. [airs Dons Deviation: Method Apply to ‘STYLES Upper Band Lower Band ‘LEVEL Levels: Www.Forexefico.za 0.100 Simple Close | pixel | | ERASMUS FOREX INSTITUTE EFICi 1.83618 1.83682 1.85611 1.83674 Envelop ERASMUS FOREX INSTITUTE rt) ee) ast) oA ar) AEA abt oA a0) -75000 aA ea an 760 EFIi rs MOVING AVERAGE, BOLLINGER BANDS ea Sa 3618 1.83779 1.8361p habs Ea chr ar SET ai web rear eet Sera WHEN THE UPPER ENVELOP LINE CROSSES THE UPPER BOLLINGER BANDS LINE, IT IS A SELL SIGNAL. SELL IS INDICATED BY RED DOT. i ERASMUS FOREX INSTITUTE EFIOn the Main Chart this is what you must have: Ae use MAIN CHART Envelopes Moving Average Bollinger Bands Www. Forexefico.za ERASMUS FOREX INSTITUTE EFLme Ua S71 thle S27 Sh Rules: we) unr) aS SI) wre wr oz aera roa a0) LTT) cao aT eR Ty easy ONLY TRADE ACCORDING TO THE STRATEGY. DO NOT TRADE WHEN YOU ARE TOO LATE FOR A PAIR. TARGET THE PERFECT ENTRY AND PERFECT CLOSE. TRADING IS EASY IF YOU KNOW WHAT YOU ARE DOING TRADING IS THE WAY TO GO TO BECOME FINANCIALLY FREE rexef ERASMUS FOREX INSTITUTE EFI