Good simple forex strategy can help you make a profit, if you will patiently follow its signals, and also do not need to trade for it when the market price moves in spurts:
To get started on the chart you need to install the following moving average:
- EMA (50) — exponential moving average with a period of 50
- EMA (100) — exponential moving average with a period of 100
- EMA (200) — exponential moving average with a period of 200
All of these EMA are in standard trading platform Metatrader 4, and are called (Moving Average).
And also set the indicator MACD (12, 26, 9) — fast, slow, light, very good fit for this MACD-combo.
If the market is experiencing an uptrend, the price on the chart will move progressively through the EMA (50), EMA (100), EMA (200).
If the trend in the market of top-down — and then price accordingly will move through the EMA (200), EMA (100), EMA (50).
An important feature of the forex market is the fact that the price always moves to its mean — in this case to the EMA, and then how to fit it — is repelled from it. But if the price breaks one EMA, she usually goes to the next EMA, which in this case is 40-60 points. But if the moving average EMA is also on some important Fibonacci retracement levels, you need to wait for confirmation indicator MACD.
Ie when trading on the forex strategy, you must:
1) to observe the price schedule and wait for the market clearly Tracings the highest and lowest points of the price.
2) then build the Fibonacci levels from one vertex to another formed.
3) If the Fibonacci levels coincide with the moving average EMA, then rolled back and the formation of topping the candles on sale — conclude a deal to sell a pre-set limit orders to critical levels coincide with moving averages.
4) To ensure best use of a trailing stop or a standard trailing stop from 1 point (step it up depends on the chosen currency pairs)
5) Stop-loss orders to stand above or below the following MA (and correspondingly the level of Fibonacci).
6) Take-profit — to the census or Lo Haya (level «0» on the Fibonacci sequence).
Example you can see in the picture:
Best of all this trading system works on a time interval — 15 min. or on the hourly chart — H1.
- According to this strategy is recommended to work on GBPJPY, USDJPY, GBPUSD, but in principle, forex strategy should work on other currency pairs.
As for the Fibonacci levels, it does not matter how much time has passed since the formation of a local maximum and local minimum — a few days, a few hours or minutes. If the price is, for example, went from high to low for 3 hours, then all you are doing — drawing Fibonacci levels from these points, and you’ll notice that the price on the chart will start from the main Fibonacci levels, combined with the moving average EMA.
If the closing price of the candle above or below the moving average EMA, you will need to be careful. In some moments of the price will break through the moving average EMA and sent to the following moving average, and sometimes it will bounce off it.
Recommend traced the history of how the price behaves in the chart with a moving average EMA. So we should not forget that the indicator MACD — is a very important indicator in the forex strategy — so you should take into account and it signals too (watch out for the divergence of MACD and Moving Averages on the intersection of the MACD-combo).
Typically, you should open a deal for 15 minutes. schedule, when you notice that the MACD indicator and crossed, and at the same time look at the H1 chart to confirm the movement — although this is quite an aggressive entry into the market.
When the moving average EMA (50) crosses the other two moving averages — the combination is called «death cross.» It means that the price will move in the direction of the crossing and will be a lot of time, until such time as all three moving averages EMA did not cross in the opposite direction.
