We will consider a forex trading strategy that offers significant advantages
to all the traders who use it. With this trading system is not get confused with
the use of several indicators, helps them to clearly identify the main trend and
enables them to execute intraday trading orders having everyday high success
rate.
The particular forex trading strategy leverages the relationship and
interaction which exists between the different timeframes of each product. You can apply to any product.
It would be fair to say that this forex trading strategy is based on the
price action in different timeframes.
It is necessary to use the EMA (200) - Exponential Moving Average
In the implementation of this forex trading strategy we use three different
charts for the same product.
The fifteen minutes, the hourly and the
four-hour chart.
On the above charts we place the EMA (200).
Our interest
is concentrated in the price position relative to the EMA (200) to the three
charts.
Buy Rules
When the price is clearly above the EMA (200) in four hours and the hourly
chart, the trend is an upward trend. In this case examine the fifteen minutes
chart if the price has dropped and is below the EMA (200).
Interpreting the charts would say that the main trend is an upward and the
price has made a move to the opposite direction, namely a single setback
(retracement).
Once we recognized that the price has done a simple retracement, we have
identified an opportunity to buy the product at a local low point and take full
advantage of the movement which will be held in order to return the fifteen
minutes chart in the direction of the main trend. On identifying of the entry
point in the market, can help us the formation of a reversal candle or the
indication from an indicator.
Each trader can use whichever option he considers as the best and provides
confidence.
Sell Rules
The Sell Rules are precisely the opposite of the Buy Rules. For a more
detailed description:
When the price is clearly below the EMA (200) in four hours and the hourly
chart is a declining trend. In this case examine the fifteen minutes chart if
the price has moved up and is above the EMA (200).
Interpreting the charts would say that the main trend is bearish and the
price has made a move to the opposite direction, namely a single setback
(retracement).
Once we recognized that the price has done a simple retracement, we have
identified an opportunity to sell the product at a local high point and take
full advantage of the movement which will be held in order to return the fifteen
minutes chart in the direction of the main trend. On identifying of the entry
point in the market, can help us the formation of a reversal candle or the
indication from an indicator.
Each trader can use whichever option he considers as the best and provides
confidence.
Important : All investors should know that any forex trading strategy before implementing in a real account needs to be
tested in a demo account in order to be fully understood.
Also, all traders
should be aware that extraordinary events occurring in the forex market very often, and is likely to alter the financial results of a
forex trading strategy.
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