System Forex Strategy

Alpari

This strategy Forex System, was created to trade on the 4-hour time-frames

Used forex indicators and tools:
1) MACD (8,17,9)
2) Stochastic (8,3,3), add the levels of 76,4 and 23,6
3) Tom Demark trend line (Tom Demark Trend Line indicator) — he comes to better identify the current trend in the market.

4) Levels and Fibonacci extension, namely SK Fibonacci (Fibonacci super-cluster). SK Fibonacci — a strong level of support or resistance for the market prices, which have been formed on the basis of 2-levels on Fibonacci Retracement 38.2 and 61.8 (where data rates are the same or are close). This area is a very strong area of support (if it is below the price — for purchase) or resistance (if it is higher prices — for transactions on sale).

To determine the goals to close the deal (take profits), in this expansion strategy used the Fibonacci 61.8%, 100% or 161.8%.

Bargaining on the purchase, at an uptrend (all items are numbered transactions in Figures 1-3):

1. If there is an uptrend in the market to start looking at the Stochastic Oscillator for 4 hours, the price chart, and determine the situation on the currency pair is oversold, while considering all pairs for which you allow yourself trade.

System Forex Strategy

2-3. Once we found the perfect situation to us — Stochastic Oscillator is in its oversold zone, looking for confirmation on the MACD indicator at the D1 and H1 charts (in their own intervals must show the same type signals). If D1 price chart we can see the difference signal on MACD indicator, the trade deals are not going to conclude. Angle indicator moving averages MACD indicator 45 degrees, or nearly parallel to the moving averages, is a very good sign for transactions.

System Trading Forex Strategy


If the MACD indicator line on the D1 price chart located nearby, or intersect, then we must have a super-cluster of Fibonacci (SK) 38.2% and 61.8%, and Trend Line about prices.

If H4 price chart Stochastic oscillator only 50-60% is oversold, the trade position is not open, because the market can have a much deeper recoil against our trade position.

Forex Strategy

4. Also we need to get confirmation of D1 (daily) Trend Line, if it supports the price on the graph in an uptrend. In the case of a breakdown of the day Trend Line, it must be kept super-cluster of Fibonacci (SK), or trading levels Fibo 38.2%, 61.8%.

5. Then hold on Fibo retracement level of H4 at the price chart and determine the existence of super-cluster of Fibonacci (SK).

If this SK is not on the chart, the trade position is not open!

After confirming all the necessary conditions to construct a Fibonacci extension levels (Fibo) from the previous oscillatory minimum to the maximum current on the price chart, and then to the current minimum to get the level of Fibonacci extension Fibo 61.8% to our target price.

6. Before you open a trading position, place a stop-loss at the current minimum or maximum close to the level Fibo 61.8%.

7. And then identify the target at the level of expansion Fibo 61.8%.

Remember:
1. To open a transaction for the purchase price should not be below the Fibo 61.8%.
2. We should not risk more than 3-5% (maximum of 7-8% — in ideal circumstances and in the presence of an existing backlog of profit on the deposit) for each open transactions of your trade balance at the time of the transaction.
3. The risk to profit in this strategy must be much greater than 1:1, ie at least 1:2, and until 1:10-20!

For transactions on sale — the reverse condition!

Additional terms of closing the transaction (if it is not closed by TP or stop-loss):

1. If H4 price chart Stochastic Oscillator moved into overbought zone (for the long trading position), the transaction closes at market price.
2. And just in case the intersection of secondary MACD H1 or D1 on the price chart.
3. Position as to be closed in case of breakdown of the trend line of Tom Demark.
4. If, after 8-16 hours after the opening of the stop-loss or profit — just to be close.
5. Closing trading positions if the goal is almost reached, but the price does not go farther, or if you are satisfied with the result of an open transaction and believe that the position should be closed as well.
6. Well, if available, can close a trading position, on the eve of approximation weekend or major holiday one of the countries on the currency pair which you have opened a transaction.

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