Every trader has a common cycle in the forex market. First you start with a demo account, buy when price goes up, sell when price goes down. Everything seems perfect in first couple of weeks. You decide to open a real account. Meanwhile you discover that there are many indicators to tell you what to do. Your charts become full of indicators, you can barely see because there is no space left on the chart. You open a position with real money and things start to get harder. At this point you start to search forums, web sites to tell you what to do.
Finally you blow another account and blame others for their bad calls. Next you search for profitable expert advisors to run on your computer. Of course, you get the same result. Finally you decide to find a strategy that works and you learn new things as you search.
Most important thing I have learned to become a successful was being patient waiting for the right time and following the strategy that I am using. Of course you learn risk management as well. Well, MetaTrader is the most common program that is used by traders so I am going to explain this system on this platform. The indicators provided here work on MetaTrader 4 platform only.
Now I am going to explain a strategy which works well as long as you follow its rules. You can use this strategy for all major pairs. Recommended time frame is 4hours. First have a look at the chart below.
As you see we use Heiken Ashi candles. But why Heiken Ashi Candles? There are five primary signals that identify trends and buying opportunities:. There is strong uptrend momentum in the session and it will likely continue. Here, the trader will have a hands-off approach to profits while strongly considering adding on to the position.
Strength continues to support the price action higher. At this point, with upside potential still present, the investor will likely consider the notion of adding to the overall position.
Similar to the doji candlestick formation, this candle suggests a near-term turnaround in the overall trend. Signaling indecision, market participants are likely to wait for further directional bias before pushing the market one way or the other. Traders following on the signal will likely prefer confirmation before initiating any positions. Weakness or negative momentum is supporting the price action lower in the market. As a result, traders will want to begin exiting initial long positions or selling positions at this point.
Selling momentum is strong and will likely support a move lower in the overall decline. As a result, the trader would do well to add to existing short holdings. Trades are made between We enter a trade when green crosses red on the TDI at the beginning of that candle.
Wait for another trade set up. The only exception is if green bounces off red and continues, then it is ok to reenter on the bounce. Exit your trade when the green TDI line goes flat, starts to hook over or makes a check mark reversal. First yellow marked candle is where we sell and second marked candle is where we buy.
Place your stop according to your risk appetite. Start trading this strategy on a demo account until you build your confidence and only then consider switching to a live account. There are five primary signals that identify trends and buying opportunities: Trading Made Simple Trading Strategy: In this example, you can see when our conditions are met. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.
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Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.More...