1 min system

Timeframe: 1 min

Pairs: EUR/USD, USD/JPY

Entry Signals:

Buy:
5 EMA is higher than 10 EMA
Momentum 8 has to be greater than 0.0010
Momentum 1 has to be between 0 - 0.001
RSI > 50

Sell:
5 EMA is lower than 10 EMA
Momentum 8 has to be greater than 0.0010
Momentum 1 has to be between 0 – -0.001
RSI < 50

*Only place an order at close price.*

Notes when not to trade:
* momentum 1 show more than 10 don’t trade until the next ma cross.
* When momentum 8 shows a buy or sell signal and RSI doesnt show sell or buy signal dont trade until next ma cross.
* Don’t trade the candle at news times and before news times.

Exit Signals

Lose situation: Close the trade when both MAs are crossing each other. 5EMA and 10 EMA

Profit Situations:
Tier 1: If price close above by spread plus 3, place trailing stop at break even
Tier 2: 5EMA and 8EMA close each other

Pair Divergence Method

This is trading divergence between two highly correlated pairs.

I find the correlated pairs at http://www.mataf.net/en/tools/correlation-table

I use the daily correlation chart.

Presently these pairs have a correlation factor of >80

EUR/USD - EUR/CHF
USD/JPY - EUR/JPY - GBP/JPY
EUR/USD - USD/CHF (Negative correlation)

The chart below shows the EUR/JPY and the GBP/JPY, together.
Basically, if one pair makes a lower low and the other does not, you buy the one that does not.

If one pair makes a higher high and the other does not, sell the pair that does not.

I wait until both pairs have turned in the direction of the trade, before entering.

On the charts, I have removed the candles/bars and replaced them with a Simple MA, 1 period, typical price.
This gets rid of the whiskers and a lot of the noise. Also, it works and I like it