Hourly forex strategy «Cornflower» based on the principle that trade deals must be opened as soon as you see a trend in the same direction at different time scales.
At the time schedule for the chosen currency pair you want to place the following exponential moving averages. The trading terminal Metatrader 4 is an indicator of Moving Average, the method of Exponential:
- 8 EMA (yellow color, dotted)
- 12 EMA (violet color)
- 24 EMA (blue color)
- 72 EMA (the color of «hacks»)
In trading on the forex strategy can be used only hours and 30 minutes. graphics, but it is more aggressive method of trade as shorter time, intervals give many false signals and longer are very belated.
The principle trade forex strategy «Cornflower»:
On the hourly price chart, 24 EMA shows the daily trend. Moving Average EMA 8 shows the velocity of money turnover for the current day, its value lies in the fact that it often acts as a support for a strong trend in the market. The same can be said of the moving average of 24 EMA, but to a lesser extent.
Long trend in the market from time to time we return to this area, as «breath.» At such times the price in the market accumulates huge amounts of money for the next breakthrough price, so there is a good opportunity to buy or sell at a lower price in the market for such a reaction. Finally, the exponential moving average of 72 EMA, defines the trend, which is now present in the foreign exchange market.
If the moving average 8, 12 and 24 EMA are above average in 72 EMA — this means that we are in a bull market and should not enter into transactions for sale!
All these rules are exactly the opposite applies to the bearish trend.
Forex Strategy «Cornflower» can be used in their every trader. As soon as the price pulls back to the region of moving averages of 12 and 24 EMA — there is a good opportunity for short-or medium-rollback. You can bargain, setting Teak-profit, or at Fibonacci levels, or support and resistance lines. Still have the opportunity to catch a long trend in the market, using an open position trailing stop, and as an exit from the market when the moving average crosses the 12 EMA 24 EMA high in the opposite direction for a steady trend. These transactions can be quite profitable and can yield hundreds of pips profit a trader in a trade deal that could last for even a few weeks. This trading system «Cornflower» allows the trader to catch all the big moves in the market, as do professional traders and traders of large banks.
Major trading rules hour forex strategy «Cornflower»:
There are two ways to enter the market on the forex strategy:
1) rollback (conservative entry into the market) — time schedule:
— Moving averages 8, 12 and 24 EMA are above (buy) or below (sell) an exponential moving average of 72 EMA.
— The price on the market retraced to an average of 12 or 24 EMA (remember — the stronger the trend, the smaller will be rolled back).
Open transaction with a profit of at least 20 pips, or hold a trading position at the discretion of the forex trader, depending on the strength of the observed trend.
2) The original (progressive entry into the market) — schedule 30 minutes (M30).
- The price on the chart has broken the moving average of 72 EMA (the candle must close above the purchase or sale at below the average 72 EMA.
- Moving averages 8, 12, 24 EMA are rotated in the direction of the main trend and preferably lined up in order (8 over 12 over 24 — a deal for the purchase of 24 over 12 over 8 — a deal to sell).
- Open a transaction with a profit of at least 20 pips, or hold a trading position at the discretion of the forex trader, depending on the strength of the observed trend, if no breakthrough was false, using a trailing stop.
Stop-loss is a better place for the important Fibonacci retracement levels (38.2%, 61.8%) or for the EMA 72. But it also should consider the feasibility of the transaction, ie desired TP must be at least 2 or more times to be more stop-loss.
20 pips — the minimum target for the take-profit, especially in the currency pair GBPUSD, GBPJPY and EURJPY, which can be easily reached market, but it is better to establish for themselves a minimum target of 50-100 points.
