Every forex trading strategy is only one purpose, to gain as much as possible
with the lowest risk.
There are a lot of ways in order to achieved something
like that.
The easiest way and at the same time the most simple and
intelligent is to do trade with the trend. It's not difficult, if you thing that
the big charts like daily, 4h, 1h, indicate and follow the trend. That means
that many movements in 5min and also 15min is against to the trend and because
all this movement are simply retrecement.
We will examine a forex trading strategy not only very simple but also very clever. All these, because
identify the main trend using the trend indications from higher timeframes. I
think it's time to have a better look to this forex trading strategy.
Is a very interesting forex trading strategy because studying the
relationship of various timeframes.
Are used three different timeframes : 4 Hour, 1 Hour and 15 Min
The forex trading strategy contains the following indicators :
- SMA(200) - Simple Moving Average
- EMA(5) - Exponential Moving Average
The main philosophy behind this forex trading strategy is to identify the
market trend at four hours and the hourly chart. The 15 min chart is primarily used to determine the exact entry
point – forex signal, exit area and the stop loss level.
In order to place a forex trading order on the forex market we need 15 min
chart to move in the same direction with the four-hour and hourly chart. The forex trading strategy applies to all forex pairs.BuyRules
Identify the overall trend on both the 4 hour chart and 1 hour chart. It means that EMA(5) crosses the SMA(200) upwards.
After that we are in a buy trend.
Enter long when EMA(5)crosses SMA(200) upwards on the 15 min chart.
Place your stop loss 1 pip behind the low of the most recent support level. Profit Target: Use risk to reward ratio 1:2
Sell Rules
- Identify the overall trend on both the 4 hour chart and 1 hour chart. It means that EMA(5) crosses the SMA(200) downwards.
- After that we are in a sell trend.
- Enter short when EMA (5)crosses SMA(200) downwards on the 15 min chart.
- Place your stop loss 1 pip behind the high of the most recent resistance level.
- Profit Target: Use risk to reward ratio 1:2
Important : All investors should know that any forex
trading strategy before implementing in a real account needs to be
tested in a demo account in order to be fully understood.
Also, all traders should be aware that extraordinary events occurring in the
forex market very often, and is likely to alter the financial results of
a forex trading strategy.
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