If you want to earn profit in Forex Trading then you should be able to find,
1: Exact entry point as early as possible.
2: Exit point as early as possible.
Here I am going to discuss about a system which will give you exact entry point. This is not a Day trading system. Plan to be in positions for multiple days and possibly up to or more than 2 weeks. The goal is to build profitable positions, protect them (with Stop losses) and add more positions simultaneously while keeping your initial risk the same.
I trade the 4 hour and Daily Forex Charts based on momentum. After trial and error ( Research n Development) on short term (5min, 15 min, 1hr etc) Forex charts I've found the 4 hour and Daily Forex charts are best for this Forex trading Strategy.
In this Forex trading system we are going to use,
1: 150 SMA (Simple Moving Average)
2: Slow Stochastic Oscillator with settings 6, 3, 3
3: RSI (Relative Strength Indicator) with setting 3
4: Parabolic SAR with default settings (0.02, 0.2)
5: Any currency with Daily Time frame
1: Exact entry point as early as possible.
2: Exit point as early as possible.
Here I am going to discuss about a system which will give you exact entry point. This is not a Day trading system. Plan to be in positions for multiple days and possibly up to or more than 2 weeks. The goal is to build profitable positions, protect them (with Stop losses) and add more positions simultaneously while keeping your initial risk the same.
I trade the 4 hour and Daily Forex Charts based on momentum. After trial and error ( Research n Development) on short term (5min, 15 min, 1hr etc) Forex charts I've found the 4 hour and Daily Forex charts are best for this Forex trading Strategy.
In this Forex trading system we are going to use,
1: 150 SMA (Simple Moving Average)
2: Slow Stochastic Oscillator with settings 6, 3, 3
3: RSI (Relative Strength Indicator) with setting 3
4: Parabolic SAR with default settings (0.02, 0.2)
5: Any currency with Daily Time frame
Before continue you should know how these Forex indicator works, Please Visit Here for more details about Forex Technical Indicators.
Now take a look at blow picture, it is GBP/JPY daily forex chart, this trick work very well on daily time frame therefor please use daily chart.
Now apply all Forex indicator mention above on this chart, now it will look like below chart,
Now, I am going to explain how to use these Forex indicators to find exact entry point and exit point. Now take a look at below picture.
Entry for Uptrend: when the price is above 150 SMA, RSI is below 25, Slow Stochastic is below 25 and Slow Stochastic lines crossover occur - Enter Long with a new price bar. If at least one of the conditions is not met - stay away.
Note: Don’t consider Parabolic SAR at the time of entry, we use it for Exit.
Exit for Uptrend: A stop is placed below the previous bar's lowest price and is moved with each new price bar. OR using Slow Stochastic, RSI and Parabolic SAR – when first Stochastic lines cross above 70, RSI is above 75 and Parabolic SAR gives sell signal (i.e. RED dot above price bar).
Entry for Downtrend: when the price is below 150 SMA, RSI is above 75, Slow Stochastic is above 75 and Slow Stochastic lines crossover occur - Enter Long with a new price bar. If at least one of the conditions is not met - stay away.
Note: Don’t consider Parabolic SAR at the time of entry, we use it for Exit.
Exit for Downtrend: A stop is placed above the previous bar's highest price and is moved with each new price bar. OR using Slow Stochastic, RSI and Parabolic SAR – when first Stochastic lines cross above 25, RSI is above 20 and Parabolic SAR gives Buy signal (i.e. RED dot below price bar).
I hope this will help you.
Click Here >> Trading trick using Fibonacci indicator>>
Note: Don’t consider Parabolic SAR at the time of entry, we use it for Exit.
Exit for Uptrend: A stop is placed below the previous bar's lowest price and is moved with each new price bar. OR using Slow Stochastic, RSI and Parabolic SAR – when first Stochastic lines cross above 70, RSI is above 75 and Parabolic SAR gives sell signal (i.e. RED dot above price bar).
Entry for Downtrend: when the price is below 150 SMA, RSI is above 75, Slow Stochastic is above 75 and Slow Stochastic lines crossover occur - Enter Long with a new price bar. If at least one of the conditions is not met - stay away.
Note: Don’t consider Parabolic SAR at the time of entry, we use it for Exit.
Exit for Downtrend: A stop is placed above the previous bar's highest price and is moved with each new price bar. OR using Slow Stochastic, RSI and Parabolic SAR – when first Stochastic lines cross above 25, RSI is above 20 and Parabolic SAR gives Buy signal (i.e. RED dot below price bar).
I hope this will help you.
Click Here >> Trading trick using Fibonacci indicator>>
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