First of all, I need to stress that this buying and selling system of mine isn’t any holy grail and anybody can use it efficiently in the event that they observe the foundations of the buying and selling system. I’ve been buying and selling for years and that is one in every of my foreign currency trading methods which have helped me made earnings constantly.
I’ve at all times stored my buying and selling methods easy as a result of it is the easy system that works on this ever-changing brutal foreign money market. Surprised by that? Did you suppose {that a} profitable buying and selling system needs to be subtle and tough to make use of? Doing effectively from the foreign exchange market is dependent upon how successfully the dealer himself makes use of the buying and selling system and never how good the buying and selling system is.
So now I’ll reveal a foreign exchange technique that I exploit fairly often to revenue constantly from the market. After you learn it, it’s possible you’ll suppose that truly it is such a easy system. But like I mentioned earlier, buying and selling ought to be easy, do not complicate it. Below are the steps of my foreign exchange day buying and selling technique:
Step 1: Look on the essential pattern utilizing every day chart. The first look from left to proper of the chart ought to let you know it is a down pattern or up pattern.
Step 2: After figuring out what the primary foreign exchange pattern is, I’ll go to Forex Factory web site to verify for for any information releases. If there are upcoming information in 2 hours, I will not even go to step Three to search for buying and selling indicators as a result of there’s a excessive probability of whipsaws.
Step 3: If there isn’t any information, I’ll put my foreign currency trading plan into motion. For instance, if the primary pattern is up, I’ll solely be searching for purchase indicators generated from my foreign exchange indicators, Vice versa if the primary pattern is down.
Step 4: Now that is essentially the most essential stage and my buying and selling determination lies right here. I exploit the crossing of Four EMA (Exponential Moving Average) and 23 EMA to outline purchase and promote indicators on the 30 minute chart. There are different indicators concerned, the weekly pivot, Stochastic and MACD (Moving Average Convergence Divergence) should additionally observe the pattern and can’t look flat. I filter whipsaws by buying and selling solely throughout excessive liquidity classes and checking whether or not the pattern is similar utilizing Four hourly chart. That’s all!
Step 5: The commerce is about at a decent cease lack of round 35 pips whereas I’ve 2 strategies of focusing on revenue. One is utilizing wholesome threat to reward ratio of no less than 1:2. The second is utilizing every day assist and resistance.
That’s my profitable foreign currency trading system. It’s easy is not it? Of course threat administration, cash administration and psychology ought to be mixed on this buying and selling system for it to work correctly.
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