The 10 and 20 SMA with 200 SMA Forex Swing Trading System Is A Very Simple Swing Trading System You Can Implement WithoutAny Difficulty At All. But First Lets Talk about Moving Averages… WHY MOVING AVERAGES ARE USEFUL There are two main reasons why moving averages are useful in forex trading: moving averages help traders define trend recognize changes in trend. If you see any forex trading strategies that have moving averages in them, the use of moving averages would be pretty much related to the two reasons given. I don’t want to bother with too many details about moving averages here…so moving on. THE TWO SIMPLE MOVING AVERAGES(SMA):10&20 SMA’s With this swing trading strategy, when the faster SMA, 10, crosses the slower SMA 20, it often signals a trend change. So when you see 10 SMA cross 20 SMA to the upside then you know there is a great possibility that the market is in an uptrend. If 10 SMA crosses 20 SMA to the downside, then you know there is a great likelihood that the market is in a downtrend. The 10 and 20 SMA with 200 SMA Forex Swing Trading System Trading Rules Trading Timeframes: Stick to 4hr timeframe and the daily Timeframe. After the faster 10 SMA crosses the slower SMA 20 look for these reversal candlesticksto enter your trade For Selling, look for bearish reversal candlesticks and place sell stop order 5 pips under the low of that bearish reversal candlestick for buying, look for bullish reversal candlesticksand place your buy stop or buy stop order 5 pips above the high of that bullish reversal candlestick. Place your stop loss above 5 pips above the high of the entry reversal candlestick if you are selling and 5 pips below the low of the bullish reversal candlestick if you are buying. Set your take profits to 3 times what your risked or look for previous swing high/lows and use these price levels as your take profit target. How To Use 200 SMA With This Forex Strategy Now as an added measure to ensure you only trade with the main trend, the 200 SMA can be used a further filter. if 10 and 20 sma are above the 200 SMA only take long positions. if 10 and 20 sma are below the 200 SMA only take short positions. This ensures you take trades only based on the significant or main trend which 200 SMA gives you an indication of. Did you enjoy this? It would mean the world to me if you shared it:
The 50EMA Swing Trading System is also one very simple and basic forex swing trading system that is easy to implement and can be applied to all timeframes and any currency pair as well. Instead of 50EMA, you can also try other EMAs like 10, 20, 30 ema’s etc. The trading rules would still be the same. THE TRADING RULES OF THE 50 EMA SWING TRADING SYSTEM Wait for price to break the 50ema to the upside or downside. The candlestick that breaks the 50ema either upwards or downwards is your entry candlestick. Place your buy stop order or sell stop order using this entry candlestick anywhere from 3-5 pips above the low or high of the entry candlestick. Your stop loss should be placed anywhere from 5-30 pips above the high or low of the entry candlestick. Take Profit and exit your trade HOW TO MANAGE A TRADE/EXIT A TRADE There are a few options which you can use to manage a profitable trade: move stop loss to breakeven when price moves by the amount your risked. Sometimes you may get stopped out easily with this option. or you can wait until price forms those peaks and valleys of price swings and use these price swings to move stop loss to lock in more profits as price moves favorably. See chart below for more clarification ADVANTAGES OF THE 50EMA SWING TRADING SYSTEM Easy to understand and implement in a good trending forex market, this trading system can give you a lot of profitable pips easily. DISADVANTAGES OF THE 50 EMA SWING TRADING SYSTEM Moving Averages forex indicators are lagging indicators which essentially means that price moves ahead and the ema indicator responds to this price moves late. This swing forex trading systemwill not work so well in a non trending market.
The Parabolic SAR Indicator Trading Strategy is based on the Parabolic SAR Indicator. This is how the parabolic sar works: when the market is in a downtrend, the parabolic sar will form above the candlesticks. This should give you the heads up that the uptrend may have ended and the market may be now going down. when the market is in an uptrend, the parabolic sar indicator will form below the candlesticks. Then you know that the downtrend may have ended and now the market is probably going to go up. The Parabolic SAR Indicator Is also good at making it clear to you the market swings. The Parabolic SAR Indicator Trading Strategy is one of the simplest forex trading strategies using the parabolic sar indicator just as it is: without any other forex indicators. What timeframes are suitable to trade the parabolic sar indicator trading strategy? Use the 4hr & the daily timeframes to trade this strategy. You may also use the 1hr timeframe-but this may lead to too many false signals. If you are trading in the smaller timeframes like the 1hr and below, it is important that you be aware of existing larger trends that may override the little trends that you may be trading on. HOW TO TRADE THE PARABOLIC SAR For Buy Setup: Wait until the parabolic sar dot forms below the candlesticks. Place your buy stop order above the high of the candlestick that the parabolic sar indicator formed under. Place your stop loss 5-10 pips below the low of that candlestick. Exit your trade when the parabolic sar indicator gives a sell signal (when a dot forms above a candlestick) For Sell Setup: Wait until parabolic sar dot forms above the candlestick. Place your sell stop order 3-5 pips below the low of that candlestick. Place your stop loss 5-10 pips above the high of that candlestick. Exit your trade when the parabolic sar indicator gives a buy signal (when a dot forms below a candlestick) DISADVANTAGES OF THE PARABOLIC SAR INDICATOR Responds late to price moves so your trade entries are made after a move (either upward or down) has happened. Because the Parabolic SAR indicator Responds late, your stop loss placements are not in the ideal locations (like behind support and resistance levels) A flat or non trending market in consolidation will cause you grief because there will be too many false signals. THE POSITIVES OF THE PARABOLIC SAR If you are new forex trader, this is a simple swing forex trading strategy which you can use to practice to trade the forex market. in a good trending market, the parabolic sar indicator forex trading strategy will work very well.
The Parabolic SAR and MACD Swing Trading System is a very simple forex swing trading system that uses two indicators: the parabolic SAR & the MACD This trading system can be used with any currency pair. HOW TO TRADE THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM-THE RULES Wait for MACD line to cross-over. Once The MACD lines have crossed over then Look To See If the Parabolic SAR has also switched position on the chart. If It does so then Place A Buy stop/sell stop order above the high or low of the candlestick at the point where both the MACD & Parabolic SAR confirm trade entry signal. Your stop loss should be placed below the low or high of that candlestick-anywhere from 5-30 or so pips depending on what timeframe you are using as well-the larger timeframe you use, the stops may be a bit larger so you need to adjust your risk per trade accordingly. To Exit The Trade(Take Profit)-when an opposite trade entry signal is given, then you exit the trade. ADVANTAGES OF THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM It is a very simple and easy forex swing trading system to use you can easily spot the trade setups happening in a nice trending market, you will make a lot of pips quite easily. DIADVANTAGES OF THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM You will get stopped out frequently if the forex market is in consolidation (or moving in a sideways trend) The MACD & Parabolic SAR are both lagging indicators so your trade entries are based on lagging information when price would have made a big move already. you stop loss may be quite large. If you place your stop losses quite close, you may get stopped out frequently.
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 setupEnter long just below 2 with stops just under 3RSI MUST be above 50MACD must be or just about to cross over. Exit rules: Once you have reached to same distance as risked close out.
The idea behind this simple Forex trading system is to capture an early move of the price when it starts to establish its new direction/trend for the day. As we know the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European session is the first major session for each coming day. As we know the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European session is the first major session for each coming day. We look for the highest high and the lowest low of the price in that range and simply draw parallel horizontal lines through those extremes that will create a tunnel. Now we are ready to move to a smaller time frame - 5 minute chart - and watch for the whole 5 min candle to close outside the tunnel which will provide a signal for us to enter with the open of the next candle. We use a 20 pip stop OR the other side of the tunnel - whichever is less. We are aiming at at least 20 pips profit. After that we have several options: lock the profit in, start "chasing" the price with a trailing stop by placing the stop just below the lowest low of the previous 5 min candle, or simply exit within the three consecutive hourly candles from the moment the trading order was filled.
Yes, one look - one hit. A trader can decide on his/her trading plans by a simple 1 second glance at the chart. It is a very simple Forex trading system that is a pleasure to use for traders with a busy schedule. Strategy requirements:Time frame: 1 dayIndicators: 5 EMA, 12 EMA, RSI 21Currency: ANY Entry rules: Buy when 5 EMA crosses up and over 12 EMA and RSI is above 50. Sell when 5 EMA crosses down and below 12 EMA and RSI is below 50. Exit rules: exit when 5 and 12 EMA cross again or when RSI crosses back through 50.\ Since it is a daily system the logic behind it can be described as simply following the daily trend. Because EMAs are lagging indicators they actually help us in this case. The signaling EMAs' cross appears after a good pause which is just enough for the new trend (if any) to be established.
Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method. Trading strategies like this can only be discovered through a long and determined observation of the price behavior. To start:Currency: ANYTime frame: 1 dayIndicators: 5 SMA, RSI 5 Entry rules: Buy when the price crosses over 5 SMA and makes + 10 pips up, the RSI must be over 50. Sell when the price crosses below the 5 SMA and makes +10 pips down, the RSI must be less than 50.Exit rules: not set. It is a very very simple system, yet with quite impressive results.Always remember to take actions/enter the trade only after the signaling candle is closed. This Strategy or trading idea can be used to create more advanced trading version.
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. Same chart: MACD (12, 26, 9) is added. Enjoy!
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. Happy Forex trading!
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. 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.
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) EA: SimpleBalanced_1_0.mq4 (Attached) Entry rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and Stochastic is not in overbought position (above 80.00 level) and RSI is above 50. Entry rules: Sell when 5 EMA crosses below 10 EMA and Stochastic lines are heading south (down) and Stochastic is not in oversold position (below 20.00 level), and RSI is below 50.Exit rules: when 5 EMA and 10 EMA cross in the opposite direction or if RSI crosses the 50 mark again. Advantages: allows filtering entries and thus is more accurate.Disadvantages: 5 and 10 EMAs can give very early exit signals.
Idea: to benefit on interest with positive rollover pairs, such as GBP/JPY, USD/CHF and others. Strategy requires having 2 accounts with different brokers - one with each broker. The first broker should pay interest for carrying the trade, while the second should not charge or pay any interest for carrying trades.I don't know if such type of brokers who don't charge/pay rollover interest exist today. If anyone knows, please advise. the rules are simple: open Long position, for GBP/JPY, for example with a broker who pays interest, and immediately open Sell position with a broker who doesn't charge interest. Buy and Sell positions cancel each other.Hold positions for as long as you like (for month or years) while earning interest everyday on rollover with the first broker. Additionally monitor the account which is on the losing side to make sure there are enough funds to sustain losses, otherwise add funds. The list of positive interest pairs (changes over the time as governments cut or increase rates; also various Forex brokers have their own rollover policies, where they may not pay positive interest on certain pairs. Check with your broker). Positive interest is paid when Buying:USD/JPYEUR/JPYGBP/JPYGBP/CHFAUD/JPYNZD/JPYNZD/USDUSD/CHFUSD/INRUSD/CNY Positive interest is paid when Selling:EUR/GBPEUR/AUDEUR/TRYUSD/TRYUSD/XAGUSD/ZAREUR/HUF So, again, my problem is, I don't know where to look for such brokers that don't apply rollover charges. Good luck!
Many traders love the allure of the volatility of the forex markets and prefer to trade intraday by opening and terminating positions within the hours of each other. Trading the daily charts is not very common because many traders lack the necessary patience to follow a trade for weeks on end to its logical conclusion. There are many things that a trader will gain by trading off the daily charts. In the first instance, we must be very familiar with the saying that the trend is our friend until it ends. The only way to determine the true trend for a currency is to look at the daily chart. A typical daily chart snapshot will show the price action for weeks at a time. You can then tell just by looking at the chart to see whether the trend is up, down or ranging. The chart above is the daily chart for the USDJPY. It is very clear from inspection that the currency pair is in a very strong uptrend after a long period of consolidation that lasted close to a year. Using short term charts will not give the true picture. Trading off the daily chart will reduce the frequency of trades, but will also allow the trader more time to assess a trade setup and trade it with greater certainty. Trade targets are larger, and a trader can make money from a few trades that will far outstrip what he will make by chasing pips all over the place. One trade I love to take off the daily chart is the retracement trade. Pullbacks are a normal part of trading because there will always be early bird traders who got into positions very early in the trend and will be looking to take some profits off the table. When they offload their positions, the price action of the currency will retrace. Now I am usually interested in the continuation of the moves in the direction of the trend. For me to do this, I need to know where the retracement will come to an end. With 5 points to choose from the Fibonacci retracement tool, I need to get a clear idea of where to make my entry. The tool I have found most useful is the Stochastics oscillator. When it crosses at overbought or oversold levels, it gives me a clear indication of exactly where to make my entries. From this daily chart above, the Stochastics crossed at oversold levels of 24.1 at the 50% Fibonacci retracement line. An entry here would have produced 250 pips as at the time of writing this on March 20th 2012. This is a simple strategy that works all the time. Trade the retracements off the daily chart.
Picking tops and bottoms on Bollinger Bands By using multiple time frames and candle stick formation we will uncover how to pick tops and bottoms while trading in the trend of the bigger time frame. We begin by looking at the daily chart to ascertain what direction we looking to trade by using the common Bollinger Band indicators middle line. A pair trading above the 20SMA is in short term up trend. A pair trading below the 20SMA is in a short term down trend. Once we find our direction we move to the smaller time, 4hour and 1hour, there we look for weakness in a uptrend (touch of bottom bands) and strength in a down trend (top of bands).
I have been working on a very simple trend following system. It requires no indicators..... only a trend line. Some functions are going to be automated to address my weak points. I am in the process of getting someone to write it now. Basic strategy: Trendline placed and named (something simple BBB for buy SSS for sell)Necessary to identify what should be followed. trade opened automatically in direction of trendline once price has moved 5 points above trend line in a BUY or 5 points below line if a SELL. This provides a degree of safety should the trend not go as planned. Stop loss automatically set at 5 points below entry for a BUY, and 5 points above for a SELL. Again, a safety point. Trade will stay active until trendline is broken by X number of points (configurable) or if the stop loss is triggered. Trailing stops not needed. It's already handled in the functions. An audible alert when trade is closed. Can be used for times you can stay and play or longer trends when you cannot. I have looked at about 1500 indicators and a lot of EA's and none were worth anything. All lagging or don't work right. Play with that stuff if you like but I'm taking a simple, fast, accurate approach. I'm looking for a way to eventually automate the process with something that will automatically draw the trend lines but that is still being researched. If anyone knows of a good, stable one, please let me know.
Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well Currency Pair: Any Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX) DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI- ADX Settings: Ignore signals where ADX is lower 20 GO LONG WHEN: EMA9 has crossed over EMA26 DI+ >= 25 ADX >= 20 ADX is in between DI+ and DI- EXIT LONG WHEN: EMA26 has crossed EMA9 AND DI- is higher than DI+ GO SHORT WHEN: EMA26 has crossed EMA9 DI- >= 25 ADX >= 20 ADX is in between DI- and DI+ EXIT SHORT WHEN: EMA9 has crossed EMA26 AND DI+ is higher than DI- WHAT TO IGNORE: While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26 While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9 While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26
Time Frame : 15mins and aboveIndicators : Average Directional Movement Index - ADX (Settings : 14) and Fractals Background on Fractals and ADX? ADX Indicator or Average Directional Movement Index gives you a reading of how strong the market is trending. We will use this to our favor and combine it with Fractal Indicator to pick a high probability trade. These indicators can be found by default in your indicators list on your Metatrader 4 platform. Fractals show peaks and dips. To explain it easier, a Up Arrow Fractal forms when there is a lower high on both sides of a candle. A Down Arrow Fractal forms when there are higher lows on both sides of the candle. Please note that fractals will only form when the candle closes with the given criteria of high lows or lower highs on both sides. Understanding The Fractal Guru Strategy When the ADX is trending by seeing the blue line rising steadily, we look for Fractals to jump in the trend. We do not take all Fractals, only the ones with tails pointing to the Fractal. Let me explain this in a bit more detail and as simple as possible with some examples. (I will also be posting a video tutorial with this to help understand this method. Long (Buy) Positions Using The Fractal Guru Strategy On the ADX, the dotted green should be above dotted red and the solid blue line should be steadily rising Look for a Candlestick with a tail pointing to a Down Arrow Fractal When you see this Down Arrow Fractal, enter Long. Place stops 5 pips below the low of the Fractal Candle. Exit using proper money management or upon the cross of the dotted green and red lines in the ADX. Short (Sell) Positions Using The Fractal Guru Strategy On the ADX, the dotted red line should be above dotted green line and the solid blue line should be steadily rising Look for a Candlestick with a tail pointing to a Up Arrow Fractal When you see this Up Arrow Fractal, enter Short. Place stops 5 pips above the high of the Fractal Candle. Exit using proper money management or upon the cross of the dotted green and red lines in the ADX.
Very Simple system - simply look for 1 of 2 candle formations at or near the bollinger band (in this case the default 20) You are looking for either 3 consecutive bulish candles for a buy, 3 consecutive bearish candles for a sell - that's it!!! - 3 white soldiers / 3 black crows formations Things to note. On the larger moves, the price WILL retrace. Best thing to do in this situation is when you see this happen (typically 1 or 2 candles in the opposing direction) simply close the trade and re-enter when the price has returned to the point where the change started. as for exit strategy - a lot of the time you can count on approx 2 - 3 times the value of the retracement (e.g. if the price retraces 10 pips, then you are looking on the re-entered trade of a TP between 20 - 30 pips! You can use ANY 3 consecutive candles, however this works best when the price has just "bounced" off the Bollinger Bands.
GBP/USD when it is 1 hour to london open, draw lines on the highest high since midnite and lowest low since midnite, just trade the breakout and let ur stop loss be at the high of the candle that broke the low line for short trade and the low of the candle that broke the upper line for long trade if u experience a breakout before New York Open, please target the first 30pips if beyond New York Open before a break please target between 10 to 20 pips