Hi all
Here we can discuss the Fozzy Daily method of trading.
The original thread is on Forex Factory at
http://forexfactory.com/forumdisplay.php?f=87
In case you don't want to go there and read, here is how to trade fozzy.
On a Daily Chart using Metatrader 4 do the following.
1) Add an 8 period RSI
2) Add an 8 period EMA to the RSI (Drag it to the rsi window and select apply to 1st indicator)
3) Add a 20 period Bollinger Band to the RSI window (Drag it to the rsi window and select apply to 1st indicator)
You should look at the charts at 0:00 GMT or just before to determine which trades to enter. When you decide to enter, open 2x positions, one with a 40 pip target, second with an open target and 40 pip trailing stop.
Stop losses should be at the high or low of the previous daily candle depending on whether you buy or sell.
Buy rules
If the RSI crosses the EMA to the upside and the cross happens below the middle line of the Bollinger Band, open buy on the open of the next daily candle.
Sell Rules
If the RSI crosses the EMA to the downside and the cross happens above the middle line of the Bollinger Band, open sell on the open of the next daily candle.
That's it. Very simple and it takes only 10 minutes a day to do.
An example of how it looks can be found below. Remember as with all new systems, you should trade it on demo to get used to it and mold it to your own personal style of trading.
Fozzy Daily Method Discussion
Linear Mode
