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Monday, 26 September 2011

Top Forex Strategies


Forex trading strategy #4 (Simple 1-2-3 swings)


And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.
A trading setup requires only an open chart and no restrictions for the currency or timing preferences.
Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below (drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.
Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the distance between point 2 and point 3 and project it on the chart for exit.
Additions: as an additional tool traders can use MACD (12, 26, 9). The rules for entry then will be next - let’s take a SELL order:
When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts “attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down). Once the price closes below the “pivot Line” – place Sell order.
FOREX TRADING SYSTEM

FOREX TRADING SYSTEM

Forex trading strategy #3 (EUR/USD simple system)


As we move forward we discover a strategy that fits only chosen currency pairs.
Take a look at the next Forex trading system:
Currency pair: EUR/USD.
Time frame: 30 min.
Indicators: MACD (12, 26, 9), Parabolic SAR default settings (0.02, 0.2)

Entry rules: When Parabolic SAR gives buy signal and MACD lines crossed upwards – buy.
When Parabolic SAR gives sell signal and MACD lines crossed downwards – sell.
Exit rules: exit at the next MACD lines crossover or if the market starts trading sideways for some time.
FOREX TRADING SYSTEM
Happy Forex trading!

Forex trading strategy #2 (Parabolic SAR + ADX)

The two indicators we are going to talk about here are found to be very well working when used side by side. This Forex trading system is an another simple discovery; and hundreds of such discoveries can be made when traders are there to learn and experiment.
Any currency pair and time frame can be used.
Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)
Entry rules: SELL When the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When the +DI line is above the -DI line, all Parabolic sell signals must be ignored.


Entry rules: BUY when the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the +DI line is below the -DI line, all Parabolic buy signals must be ignored.
Exit rules: when +DI line and -DI lines have crossed again.
FOREX TRADING SYSTEM


Advantages: allows filtering entries and predicting good exits.
Disadvantages: Both Parabolic SAR and ADX are follow-up indicators. Although they complement each other very effectively, the “weakest” in chain is ADX, because during trading it can give one signal, but later change to the opposite. Once given a signal from ADX, waiting for the current price bar to close to avoid such misleading is advised.

Forex trading strategy #1-a (SFT Simple Strategy)

Hi everyone,


As I promised while ago, I am bringing my whole setup for this strategy (Simple balanced system). I have been trading live for quite some time and this TA is one of few lasting without major optimization for couple of years.

I am not going to say Try this or Try that. I am bringing this system with everything and it will be up to You to test it or trade it live or do whatever You wanna do with it. I do have EAs based on exact rules as well. But not going to share it for now. since everything will be here same as in the source of the EA.
The main reason I am sharing this is, that I already made money with it, either You believe it or not. And the most important reason why I am bringing the TA + rules with whole Money Management is, that internet is full of "smart" guys recommending this or that, but having no clue, WHY would they even use such recommendations.
I hope it will help some of You to learn from my setup and possibly make some pips with it later. This year has been historic for forex and we could feel that based on our strategies acting. Next year could be the same or worse. Do a hundreds of backtests, demo trades and learn each indicator in this strategy before You decide to go Live, but most importantly - Stick to the rules of the system!!!!


Wish You all Merry Christmas, Happy and profitable next Year!!!!
Alright. Here am I with somehow basics of this system used by me. Use it at Your own risk. There is no system as holly grail in this business. The holy grail is in You and Your ability to use it!
Indicators: Average Daily Range
Bar Clock
Scripts: BUY_SFT
SELL_SFT
Set SL to BE
Template: Sft Template
System with detailed rules in PDF: SFT_Simple_Strategy.pdf
System with detailed rules in PDF: SFT_Simple_Strategy.pdf
Useful stuff and utilities to use with this strategy: SFT_technical_utilities_English.rar
Enjoy !

Forex trading strategy #1 (Simple balanced system)


Current Forex trading system represents a well thought and very simple combination of indicators. Knowing what signal to look for with each indicator, provides a strong tip for good entries and exits.
Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA, Stochastic (14, 3, 3), RSI (14, 70, 30
FOREX TRADING SYSTEM


Advantages: allows filtering entries and thus is more accurate.
Disadvantages: 5 and 10 EMAs can give very early exit signals

Friday, 23 September 2011

Profit in Both Bear and Bull Markets


In both Bull and Bear markets, one aspect is relatively clear: the general direction the market is trending towards, as this is in essence the basic definition of each market. (The definition of a Bear Market is when prices are low or declining. The definition of a Bull Market is when prices are high or rising). In financial market day trading, it is the psychology behind trader momentums that create trending patterns, and creates market dynamics. Experienced traders are all too familiar with spotting trader momentums, and trading accordingly. However, the same psychology of momentum backfires on traders when a market reverses, stop losses are hit, and reversal momentum builds quickly. In order to profit in either market, traders can turn to trading binary options, which can work as a stand-alone profitable way to trade, or as a hedge against a market reversal. Binary Options give day traders the flexibility and means to equalize market conditions as you are choosing only one outcome: the direction of the market.

Bull Markets are generally perceived as “safer” markets and attract a majority of conservative investors and fund managers. On the other hand, Bear Markets as generally perceived as “riskier” because of the selling momentum build up when there is a reversal in market condition and stop losses are hit. Binary Options allow traders to trade with momentum, in either market situation.
Let’s explore how you can trade with Binary Options for both Bear and Bull Markets. First, let’s choose the perceived “safer” market, the Bull Market. When you choose to buy a Binary Option in the direction of the Bull Market, you are speculating that the market will continue in that direction until the expiration of the Binary Option. Since the Binary Option will pay out equally no matter how much the Bull Market will continue, you merely have to align your trade with the trend. For the “riskier” Bear Market, the same principle holds true – you align your trade with the trend. Note that you are only trading in the direction of the market with Binary Options, and are not concerned about the strength of the market. If you were using Binary Options as a hedge in a market reversal instead of a stand-alone profit mechanism, you would quickly choose to purchase a Binary Option in the direction of the market reversal, which would in effect, either cancel out or at least minimize your loss from an existing trade you had placed.
Whether as a stand-alone profitable mechanism or as a hedge, Binary Options provide an easier and less risky way of trading the financial markets. Binary Options work to lower the risk of Bear Markets, and are a way to profit from the current trend of both a Bear and Bull market.

Easy Forex trade

Any system need to have a very good basic to stand on. Once the basic is sort out, then all the accessories can be add on. Just remember not to add too much to it. Today I am going to give a basic system. It consist of only 2 indicators. Being simple, it is able to generate good signal. Just remember to put SL properly. 


Indicators:
1. LWMA 55
2. MACD standard setting

Time frame: 30m

Stop Loss : 35 pips

Take Profit : 35 pips or more.

Currencies : EurUsd, GbpUsd, EurJpy, GbpJpy

Trading System:
LWMA act as a thin trend line. If the price is above it, its uptrend. If the price is below it, its downtrend. So you buy or sell according to trend. Never reverse trade. MACD also shows the trend. If MACD is above 0, its uptrend and the other way around.

I have put 3 vertical lines in the chart where MACD cross 0. Once MACD cross 0, you should only trade according to trend. You entry should be on the LWMA 55 or close. At the moment MACD has cross 0 and is heading down. From now on only consider short position. Try to enter as close as possible to LWMA 55.

Caution has to be taken, even though MACD has cross the trend is not yet full down actually. There is another indicator that I use to show trend and its not full down yet. Unfortunately that indicator is no where in the chart because it is not on GbpUsd chart. It is somewhere else.

Now you wonder why its not there. The truth is most people fail because what they are looking for is not there. That is what I meant with looking at the wrong direction. The trend indicator for GbpUsd is not on GbpUsd chart. Weird isnt it?

You can take this basic system and try to add on what ever system you have. Hopefully it is useful. Good Luck

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