The Best Forex Community
Forex trading strategy
Entry Point
1. Decide which pair you are going to trade.
2. Find out all major trends by checking the different interval forex charts. For example, 1 hour, 4 hours and daily forex charts
3. Plot the trend lines through the high points if it is on a downwards trends and plot the low points if it is on an upwards trend. You will need at least 2 months of data to be able to plot out the trend lines
4. Mark the support and resistance levels
5. If the price is almost approaching the trend line you have drawn, wait for it to move through or below the line before proceeding.
6. You might want to also check the RSI indicators to see if they give you a warning. Also make sure to check the MACD and Stochastic levels as well.
7. Make sure for the next 2 or 3 days, there are no major data releases for the two countries’s currencies. It will cause some fluctuations in the prices.
8. Get in and start trading but use no more than 10% of your capital
9. Place a stop loss but do not place it so far enough that you won’t make a profit. I would suggest 100 pips as a recommended stop loss point.
Exit Point
1. Put a take profits limit order. Set it to between 30 to 50 pips. If possible, place it just ahead of a major support or resistance level. Also, make sure your limit order is about 15 to 20 pips away from the S/R level.
1. Decide which pair you are going to trade.
2. Find out all major trends by checking the different interval forex charts. For example, 1 hour, 4 hours and daily forex charts
3. Plot the trend lines through the high points if it is on a downwards trends and plot the low points if it is on an upwards trend. You will need at least 2 months of data to be able to plot out the trend lines
4. Mark the support and resistance levels
5. If the price is almost approaching the trend line you have drawn, wait for it to move through or below the line before proceeding.
6. You might want to also check the RSI indicators to see if they give you a warning. Also make sure to check the MACD and Stochastic levels as well.
7. Make sure for the next 2 or 3 days, there are no major data releases for the two countries’s currencies. It will cause some fluctuations in the prices.
8. Get in and start trading but use no more than 10% of your capital
9. Place a stop loss but do not place it so far enough that you won’t make a profit. I would suggest 100 pips as a recommended stop loss point.
Exit Point
1. Put a take profits limit order. Set it to between 30 to 50 pips. If possible, place it just ahead of a major support or resistance level. Also, make sure your limit order is about 15 to 20 pips away from the S/R level.
Replies to This Discussion
-
Permalink Reply by Anne on -
Forex strategy has to be taken with flexibility, vigilance and utmost caution. Most traders have learned to establish their own strategy to ensure the success of their financial ventures. However, there is no perfect or absolute forex strategy or method over time. Strategies have to be updated and enhanced every now and then because the market conditions are dependent on a per day basis.
Forex strategy must be made with utmost caution and flexibility because there is no perfect or absolute forex strategy or method or success over time. Strategies have to be updated every now and then because the market conditions are very volatile. -
-
Permalink Reply by princess Todd on -
Thanks Anne for your reply. You have correctly pointed out that forex strategy should be taken with caution and after testing them. Can you name any online forex tool for testing the strategies before using them?
-
© 2012 Created by yuval.
