Minggu, 10 April 2016

Forex Trading Strategy 4 ~ xlt forex trading course download



Forex Trading Strategy 4




















Conditions required
1) Stochastic Oscillator (14,3,3)
2) RSI (50)
3) MACD (12,26,9)
4) SMA 5 (Blue Line)
5) SMA 10 (Green Line)
6) M15 & H4 Charts or H1 & H4 charts

The concept of this strategy is to look at
the overall trend of the day from the H4, D1 or even H1 charts but i prefer H4. The firing of trades will then be done at the M15 chart. 

Buy Trades 
- SMA 5 cross over SMA 10
- RSI indicator above 50
- Stochastic Oscillator trending upwards
- MACD trending upwards  

Sell Trades 
- SMA 5 cross below SMA 10
- RSI indicator below 50
- Stochastic Oscillator trending downwards
- MACD trending downwards

The following 2 examples show how we took 2 trades in a same day using the above method for USDJPY. The first trade was entered with all conditions met at 113.49 and took profit at 113.75. The second trade was entered at about the same price of 113.50 when it came down again, and took profit at 113.65. 

It is interesting to note that for both trades, the price shot further up by tens of pips after i took profit. On hindsight, it would definitely be worthwhile to wait longer before exiting the trade but greed is usually the downfall of many traders so i stuck to my enter and exit policy.

Stop Loss - There are many ways of stop loss but the one i am using is to trace back to the lowest price for the day and set it at around that price which as can be seen in my example one to be at 113.16. 

Take Profit - This is simply based on the number of pips taken at stop loss and added to the price entered for taking profit. With reference to example one, a stop loss at 113.16 would be risking about 33 pips (113.49 - 113.16). Therefore, take profit will be to add about 30 pips upwards which i did at 113.75 (113.49 + 26pips).


Remember to take into account the bid spread when setting stop loss or take profit.
  
Example One




















Example Two


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