Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here. Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend? It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here. KISS… KEEP IT SIMPLE & SIMPLE. TIMEFRAMES: Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins. INDICATOR: I use only 1 Metatrader4 indicator called Swing ZZ(zz for zigzag). It is freely available in the net, just google it and you can download it. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy. S...
Posts
We draw the trendline by HH (Higher Highs) and HL (Higher Lows) for uptrend and LH (Lower Highs) and LL (Lower Lows) for downtrend. We need a minimum of 2 LH swings for downtrend and a minimum of 2 HL swings for uptrend. We need be a trend follower and ALWAYS go with the trend. These are the words of Myron when the trendline strategy was presented, not mine. So, when the third time the price intersect our line we are looking for buy if we have uptrend line and for sell if we have downtrend line. For example, on AUD/USD Daily we got a huge and clearly downtrend After we have spotted the two first LH we draw a trendline and wait for the third test to go short. The price is touching our trend line and also is reject and trend continue to decline. Again, I remind you that until now these explications were of Myronn not mine. Now, how do we know when the correction to the third point is over? Most of you will search for signs of weakness around the resistance point 3 and ...
This series of articles will present several strategies for all types of trading. Breakout, trend, swing and ranges. All of the strategies will have some common characteristics that are essential in order to be profitable. These are, v Few and simple rules that are easy to follow and that will permit emotion-free trading v Strict money management. They all rely on a minimum 2:1 risk-reward ratio v Clean charts that are not overloaded with indicators v All strategies have losing trades. But if a trader follows some basic rules then there is no doubt that he is going to be successful. RSI is one of the most popular indicators, but most new traders are familiar only with the traditional overbought and oversold signals of the indicator. Actually RSI can be used in many different ways that are quite more effective. The traditional 70-30 level trading is profitable only for range trading and it will generate huge losses in other mar...
This system is a breakout system . We are going to use trend lines and Fibonacci levels . We are not going to waste our time predicting the trend. Instead, we are going to follow the trend and wait for price to move and confirm our signals before we enter the market. Trend lines simply represent the direction of the market. In up trends, the line should be drawn below the price. Connecting at least 2 lowest lows. The more lowest lows and higher highs the trend creates, the more valid – powerful – it becomes. In down trends, the line should be drawn above the price. Connecting at least 2 lower highs. The more lower highs and lower lows the trend creates, the more valid – powerful – it becomes. UP Trend Down Trend There are two kinds of trend lines that we are going to use with this system. Main trends small trends. The main trend line, should represents main directio...
The 100 Simple Moving Average (SMA) Trend Line break strategy is a simple yet effective strategy to trade forex profitable. Ofcourse, you need to know how to draw a trend line before applying this strategy to your advantage. Trading Tools/Settings Used Indicators: 100 period Simple Moving Average Analysis tools: Trend Lines Time frame(s): All Trading sessions: All Currency pairs: All Trading Rules Buy Trade: Go long when the currency price trades above the 100 simple moving average and the price closes above a falling trend line from below. Place your protective stop-loss below the most recent support. Take you profit at 1:2 risk to reward ratio or better (or use any other TP method). Sell Trade: Go short when the currency pair trades below the 100 simple moving average and the price closes below a rising trend line from above. Place your protective stop-loss above the most recent resistance. Take you profit at 1:2 risk to reward ratio or better (or use any...
It’s not about the entry system you use, but the pairs you choose to trade what will make you a successful trader.” T here are a few things that I wish someone told me at the beginning of my trading career. The most important of them would be: stop looking for the perfect system, and focus in choosing the right currency pairs to trade. If someone did, and assuming I followed his advice, It would had saved me years of frustration... maybe two or three years (perhaps four)? I know you have been trained to look for the best entry system in the world. How do I know this? Because at one point I was a novice trader and I was looking for the same thing... plus I’ve worked with hundreds of beginner traders who were/are looking for the same thing: The Perfect System, the system that is right 95% or 100% of the time... If you are still looking for that system, please STOP, here are a few reasons to stop now: 1 - You will save months or even years 2 - You could have the best ent...