1-2-3, RSI + MACD
I have spent a considerable time studying your strategies and i would like to share with everyone what i have taken and now apply to my trading.
Any currency pair can be traded
Indicators: 5,10,20 EMAs - RSI - MACD
Time frame: I use 15min charts (I find bigger time frames to slow and bigger stops)
Entry rules: On an down trend wait for a higher low.
Find a 1-2-3 setup
Enter long just below 2 with stops just under 3
RSI MUST be above 50
MACD must be or just about to cross over.
Exit rules: Once you have reached to same distance as risked close out.
Here’s how many traders would normally trade a daily pin bar: as soon as the high of the daily pin bar is broken, a buy order is initiated and stop loss is placed below the low of the pin bar. But I believe this is not the best way of trading the pin bar and I will list the reasons why here: if you know, the daily pin bars are unusually long candlesticks which creates a problem because it means your stop loss would be huge which means at the place where you enter a trade may not necessarily be a good one. So is there a better option? A low Risk Entry Method? You bet there is! In here, I will show you a better way to trade the daily Pin Bar. Here’s the Daily Pin Bar Low Risk Entry Method: After the daily candlestick has formed, you need to identify it to see whether its a pin bar or not. Once you’ve identified that it is a pin bar, you then need to switch to either the 4hr or 1 hr timeframe (which ever you prefer). Once you are in the smaller timeframes like the 1hr or the 4hr, you have to watch and wait for price to go down. The buy entry candlestick is the candlestick that takes out the high of the previous candlestick. This is your signal to place a buy stop order above the high of that candlestick and place your stop loss a few pips below the low of that candlestick. If you get stopped out, keep looking for the next buy entry candlestick. It is preferable that the buy entry candlestick be happening within the high and low range of the pin bar. With this trading method, you will have a low risk entry in anticipation of a breakout of the high of the daily pin bar. So you want to get into a low risk entry trade before the breakout happens. Advantages of of Trading The Daily Pin Bar With The Low Risk Entry Method: Switching to 1hr or 4hr timeframes to look for the buy entry candlestick allows you to enter early before a breakout happens when the daily pin bar high is broken to the upside. Which also means low risk entry, instead of a 100 pips stop loss on the daily timeframe pin bar, you could be entering a trade with 25 pips stop loss using 1hr or 4hr timeframes as shown by the charts. if a valid and nice breakout happens, you make a lot of profitable pips easily. know also that when a pin bar forms in the daily timeframe, it gets the attention of many breakout traders who would be stacking their buy orders just above the high of pin bar in anticipation of a breakout so once price hits these orders, the markets tends to shoot upwards quickly. Daily Pin Bars forming around strong areas of Support worth paying attention to because as mentioned above, many traders would be watching it. Any Disadvantages of this Forex Trading System? Not all daily pin bars may have strong breakouts when their highs are broken. Pin bars can form anywhere but not all of them would be good to trade. Pin bars forming on support levels or major fib levels and pivot points are the ones you should be focused on trading. Did you enjoy this? It would mean the world to me if you shared it:
Moving average crossovers are a popular method of approaching a trading strategy. You can use long term exponential moving averages to take advantage of a “macro view” or short term averages such as the one discussed here, 5 EMA And 8 EMA. The short term moving averages crossing over indicates the short term trend has changed and we want to trade in the direction of the cross. If the 5 is above the 8, we will look for long trade entries. If the the 5 ema is below the 8 ema, we will look for short trades. Keep in mind this is a short term swing trading strategy so keep your profit expectations in check. 5 EMA And 8 EMA Trading Strategy Details Timeframes: 4hr/daily Indicators: 5 ema & 8 ema Currency Pairs: Any Long Entry Rules: Wait for 5 ema to cross 8 ema to the upside. You can buy stop the high of the candle that turned the moving averages or simply enter at close. Short Entry Rules: When 5ema crosses 8ema to the downside, you can sell stop the low of the candle that turned the moving averages or simply enter at close. Stop Loss: Set your stop 5 pips above or below the entry candlestick. If that entry candlestick is a narrow range candlestick, use the previous candlestick. Take Profit: You can use a couple of options for take profit Look to the nearest chart structure Use a cross of the moving averages Use a reversal chart pattern to signal your trading exit. This is a daily chart of the AUDUSD with our 5 ema and 8 ema moving averages applied. I am using the conservative entry of setting a sell stop below the low of the setup candlestick. If you used the moving average crossover as an exit and exiting at the close, this short trade banked 178 pips or a 1.38R You can trade as an “always in” trading strategy and this trade sets up with a spinning top candlestick but you are triggered in on a momentum candlestick. Using a resistance structure (see #1), this trade banked 256 pips (2.4R). Using the crossover at 3, the pips total 298 pips. Fibonacci 272 profit target 376 pips or 3.5R This short trade does not trigger as price never passed the low of the setup candlestick. Triggered long but trade appears to be in danger of taking a close upon the cross of the moving averages As you can see, the 5 ema and 8 ema crossover trading strategy is pretty straight forward. As you gain experience, you will tend to use other tactical trading plays or trading strategies (breakouts, pullbacks) to enter the trend if you missed the actual crossover trade trigger. Manage A Profitable Trade How would you manage a profitable trade placed with the 5 ema and 8 ema crossover swing trading strategy if you are looking for higher returns? If trade moves in favor, and you want to lock in profits, the best option is to move stop loss and place behind the high(or low) of each subsequent candlesticks that forms. That means for a short trade, move stop loss and place above the high the candlestick that continues to make lower highs. For a long trade, move stop loss and below the low of each subsequent candlestick that continues to make Higher Lows. Or if on the daily time frame, you may try to use a 50-80 pips trailing stop. If on the 4 hr time frame, use 25-40 pips trailing stop. Use an ATR trailing stop Use trading stop placement tips from this article. Good (and bad) of 5 EMA And 8 EMA Cross Over Swing Trading System Easy to understand and implement. In a strong trending market, there is potential to make a lot more profit when you ride out the trend with good trade management. This trading strategy would give a lot more false signals in a ranging market (which you can also trade) Stop loss can be quite big depending on the time frame that is used so you need to adjust your position sizes to bring your trading risk to an acceptable level. Moving averages are lagging indicators and every entry taken based on this swing trading system is effectively “late”. This means that price had already made a big move and you would have not gotten into the trade at the start of that move because the entry of the 5 ema & 8 ema trading system is based on lagging moving average indicators
hiiam trading with some range pairs eurchf,eurgbp,usdjpy with one strategy ofcourse it is scalping.my trades are mixed with others while trading with this strategy.strategy iswe attach indicatorsbollinger bandenvelopewe use time m15logic=when price [up]exceeds both upper bb and upper envelope we short.when price[down]exceeds both lower bb and lower envelope we longstoploss 25take profit 8.with this sl and tp for three days i have 16 wins out of 18.i traded eurchf ,eurgbp,usd jpy[the loosing trades went wrong side maximum 100 pips and retraced almost 50%]and i observed last 2 years charts.i noticed that with stoploss 35 take profit 12 there is almost 80% winning.this is without martingale.-------------------------------------------when we make some martingale for losing trades almost all failure trades survive with in 200 pips range.i noticed if we use martingale as follows0.1 first ordergap 15 pips =150.1 lotgap 25 pips =400.1 lotgap 40 pips =800.2 lotgap 80 pips =1600.4 lotlock all orders at 220pips =220release all at extrreme level[use rsi,we can make it by manual also]stoploss 40 ,tp breaeven+30 pips