Forex Strategy «Positional medium» is based on simple moving average SMA and at important levels, as well as trend lines, recommended for trading currency pairs — EURUSD.
Because is a «positional strategy forex» — the main condition for trade — the presence of a trend, and the opening position is on the movement of the trend. And since it is «medium», then trading is suitable only daily charts, the analysis will be conducted and on the weekly chart.
Because trade is conducted on large intervals, it is quite possible it does not fit all because of the small size of the deposit, but in any case, if you want to trade — either use a micro-cent accounts (well suited company Forex4you), as well as it should be remembered that risk for each transaction should not be more than 3-4% of the deposit.
And so on the chart, you must install the following forex indicators:
- Simple Moving Average — SMA:
- — The interval W1 (weekly): SMA (4) — the color red, SMA (8) — the color blue, SMA (40) — the color green dotted line (optional);
- — The interval D1 (day): SMA (5) — the color red, SMA (20) — the color blue, SMA (50) — the color green dotted line (optional);
- Important price levels are determined by visual observation of areas of congestion price bars.
- trend lines of support and resistance must be built explicitly for min or max prices of candles.
Opening of trading positions is, if:
— SMA (4) and SMA (8) on the interval W1 and moving average SMA (20) on the interval D1 have the same direction in the same direction and indicate the direction of the trend in the market;
— If the trend is up, the price should be higher than these simple moving averages, and the opposite: if the trend is falling, the market price should be lower than those of simple moving averages.
Trading signals for the transaction (check availability of trade signals and the opening of the trading position is only 1 time per day — better in the evening):
— SMA (5) day interval was directed against the main trend or horizontally and turned in the direction of the trend;
— SMA (20) on the interval D1 was directed against the main trend or horizontally, and its price is crossed and closed above (to buy) or below (for sale) in the direction of the main trend in the market.
Closing the trading position of forex strategy «Positional medium»:
— Safety stop-loss orders at the opening of trading positions should be set equal to the value of the previous local maximum or minimum price on a daily schedule back 10 pips.
-, Subject to the open position profit of 30 pips — need to move the stop-loss order on the magnitude of 5 pips. You can also use this standard trailing stop (30).
— After the formation of a local minimum or maximum (fractal) in the direction of the trend should be stop-loss orders to rearrange under it or above it depending on the direction of trade.