This is a king of strategy that uses a 4 hour or daily timeframe and suited to all currency pairs.
200 period simple moving average (SMA).
50 period SMA.
50 period SMA (Based on close),
100 period Bollinger Bands (100, 2))
200 period bollinger bands (200, 2)
Stochastic Indicator ( period 14, 7,3) ,
CPI (set only candlestick reversal patterns),
Spike pattern (candlestick pattern).
The price must be at or near either the 50 SMA, 100 SMA, 200 SMA, 100BB or 200BB. If price are not found in this area, then do not trade. These indicators aserve as zones/levels or probability, it means that the chance of a reaction has increased.
In the case of the BB’s only, the price can sometimes travel a fair distance through the BB. A trade will still be considered even if price have gone far. When stochastic 14/7/3 is overbought (both lines are above 80) or oversold (both lines are below 20)then there is still a trade that can happen. The stochastic lines must be “turning and touching”. Candle bar must be clear on its reversal which occurs at one of the zones of probability and when the stochastic is “touching and turning.” There are also candle patterns that must be considered and these are the some important patterns: spikes, dojis, engulfing candles, piercing patterns.
Stochastic Indicator is in Oversold and crosses downward ;
The price where the price is touching or very close to the above 50,100 or 200 SMA OR the 100 or 200 BB.
Wait the formation reversal pattern.
Stochastic Indicator is in Overbought and crosses upward ;
The price where the price is touching or very close to the below 50,100 or 200 SMA OR the 100 or 200 BB.
Wait the formation reversal pattern.
Four hour chart: profit target 80-100 pips depends by currency pair and Initial stop loss 50-70 pips. After 60 pips in gain move stop loss at the entry price and insert a trailing stop of 30 pips.
Daily chart: profit target 250-300 pips. Initial stop loss 80-130 pips after 150 pips in gain move stop loss at the entry price and insert an trailing stop of 50 pips.
[[ Trend Following Strategies ]] 3 Exponential Moving Average
This is a trend following strategy based on three Exponential moving averages with levels (50 and -50). WPR slow indicator is also use as reference or for filtering. This strategy uses 1 hour and 4 hour chart.
The Indicators needed:
Exponential Moving Average 5; (with levels 50; -50)
Exponential Moving Average 11;(with levels 50; -50)
Exponential Moving Average 50;(with levels 50; -50)
Exponential Moving Average 5-period (EMA5, Black color in the illustrations with levels 50; -50);
Exponential Moving Average 11-period (EMA11, Blue color in the illustrations with levels 50; -50);
Exponential Moving Average 50-period (EMA50, Green color in the illustrations with levels 50; -50);
EMA50 and EMA11 are both pointing up.
EMA5 is above EMA11.
EMA11 is above EMA50.
When we have these three conditions, we know that we’re in an uptrend.
Re-enter when price fall back and touch 50 EMA.
Filter optional: (WPR slow indicator confirmed with red bar sell signals).
Stop Loss must be at -40 pips.
Should the trade reach 40 pips, exit one lot and use SL to breakeven. Use trail stop of 40 pips or move SL to the recent high each time price break that high.
When EMA 50 & EMA 11 are pointing up, and EMA 5 is above EMA 11 and EMA 11 is above EMA 50, then market is a strong uptrend.
Identify first if it is a strong downtrend.
EMA50 and EMA11 are both pointing down.
EMA5 is below EMA11.
EMA11 is below EMA50.
Re-Enter when price fall back and touches EMA 50.
Stop Loss must be set at -40 pips and take profit at 40 pips.
Move SL to break even and use trail stop of 40 pips or move SL to the recent low each time price break that low.
[[ Trend Following Strategies ]] Braydensgrail Forex
This system works on a 4 hour timeframe. It also uses various indicators and most especially the MA to filter and know trend direction.
EMA 50, 100, 200
William Percentage Range = default
RSI = default
Accelerator Oscillator = default
Stochastic = default
For Long Entry:
WPR must cross over the RSI
Accelerator and stochastic must cross above zero at the same time.
For Short Entry:
WPR must cross below the RSI.
Stochastic and Accelerator must cross below zero.
Note: The red lines are were the indicators/indicator crossed and trades were taken. If you notice the Williams/RSI sometimes crosses first or the Stochastic/AC crosses first (you could use this as an early entry if you want to) these indicators are powerful enough to be used independently. I will sometimes enter the market early if I feel price action is going to cooperate, however I am more confident about a trade when all the indicators are reflecting one another. Other key factors the can influence my trading but not always are trend direction and fundamental reports such as news.
Do not risk 1% of total equity on any trade.
Stop loss must be -73 pips depending on the pair and market condition.
When a trade hits one pip profit, it is advisable to put a 15 or 25 point trailing stop on it (however if the market is acting volatile I will increase my trailing stop) and let it run until stopped out, but you can use which ever size trailing stop you want or your broker offers. Since everyone has a different account size. It is advisable to use a money management program that is best for your account.
[[ Trend Following Strategies ]] Kiss 4 Hour Forex
The kiss 4h system works on a 4 hour chart in all major currency pairs.
MACD (24, 52, 18)
The best thing to do is follow the trend, observe the forms like the higher highs & higher lows and lower highs and lower lows. The best setup will show if the trend matches up with the pairs. Candle pattern can also help you in setting up a position. This is the beauty of PRICE ACTION.
Moving average also is another way to know trends and works best if combine with the price action.
MACD HISTOGRAM can help you identify divergence-convergence. You will be fully aware when the market trend may end. The best setups are when the histogram ?? on the assess side of the zero line( above th? zero line f?r longs ?n? below the zero line f?r shorts).
Money Management Set SL at 100 pips to be safe on your position. Target price should be 75pips for pairs with higher Mean Daily Ranges(GU, EJ, GJ), 50pips for pairs with less vital ADR’s(EU, AU).
Exit the trade in the first candle that closes in the opposite side of your entry candle of your Target Price should not been hit. With proper entry, your losses should be around 60 pips or less.
This system is applicable in all timeframe. The parameters used for moving average is the Fibonacci sequence numbers 5 and 13. Use EMA 5 and 13 when you wish to identify price movement.
Here are the rules to follow:
Open the position when EMA5 has crossed EMA13.
You can BUY when EMA 5 crossed EMA 13 from below.
You can SELL when EMA5 crosses EMA13 from above.
Wait until the timeframe closes. If by this time EMA5 and EMA13 have crossed each other, enter the
market at the price of opening the following time interval.
When opening the position, you should place stop loss order below/above EMA13.
Close the position in case:
The closing price showed crossing or equality of EMA5 and EMA13;
The prices reached the level of your stop order.
This suggested rules might help you improve results on your trades:
Put stop loss at 50 pips from EMA 13
Do not open the position if there is a gap of more than 100 pips between the opening price and the level of stop loss order. (This rule is a protection from big market movements which take place during a very short timeframes.
Do not open the position when there is only 1 pip between EMA5 and EMA13.
Wait until the time interval is closed with more sufficient difference between EMA5 and EMA13.
Your risk should be not more than 10% of the total sum of your account.
This system has a potential to gain high profit and limited risk. In technical terms, it is called a Disparity Hedge, it means that when a setup is visible, you buy one currency and sell another simultaneously. It is not hedging.
We will use a 1 hour chart on this and works for EURUSD and GBPUSD pairs to compare.
The EUR/USD – GBP/USD trade:
GBP/USD pays a positive rollover when you are in long position.
EUR/USD pays a positive rollover (but less than the GBP/USD) when you are in short.
Look and observe 2 pairs and compare.
Enter trade when there is clear disparity between the pairs.
[[ Scalping Strategies ]] EMA bands Forex Scalping Strategy
This is another strategy that follows a trend and EMA or exponential Moving Average is the reference. Major pairs are the suggested pairs to be traded with 1 minute timeframe. Bar chart is recommended also in using this.
EMA set ups = 2-3-4-5-6-7-8-9-10-11-12-13-14-15 (yellow)
Second group of EMAs set ups 17-19-21-23-25-27-29-31-33-35-37-39-41 blue
Third group of EMAs 44-47-50-53-56-59-62-65-68-71-74 green color
Entry of this technique is easy to determine. For LONG entry, group of yellow EMAs must cross the group of green EMAs. The same rule follows if your trading SHORT.
Traders can reenter when the price touches the group of green or blue EMAs and returns to the group of yellow EMAs.
You can exit the position Profit exit at 7 and set stop loss to 5 pips.
[[ Scalping Strategies ]] Support and Resistance Dynamic Forex Scalping Strategy
This is a good strategy for trending markets for it can take advantage of the profit that the market may offer. Fifteen minute time frame is advisable for this strategy and major pairs are the suggested pairs for this system. This system is trading during major breakouts of support and resistance.
For LONG entry:
Wait for the previous candle to close.
Take a position 1 pip above the red dot.
For SHORT entry:
Wait for the previous candle to close.
Take a position 1 pip below the blue dot.
You can use pending orders on this and it is valid until the next dot shows up. You can set stop loss on high of the set up bar for short, and low of the set up bar for long. Take profit must be 8 pips for EURUSD, 7 pips for AUDUSD and USDJPY, and 9 pips for GBPUSD.