Showing posts with label Forex Strategy. Show all posts
Showing posts with label Forex Strategy. Show all posts

Monday, 3 September 2012

Forex Simple Strategy


 Simple Strategy from " Bella " System
1. Open a 30 min chart EUR/USD. Insert RSI (14), Stochastic Oscillator (14,3,3) and
EMAS 5 and 13.
2. We have to watch for a divergence between the price and the RSI or the Stochastic.
This is very important, because sometimes we don�t see a divergence between the price
and the RSI, but the Stochastic show divergence compare to the price, and viceversa.
3. Once we saw the divergence we have to wait for the cross of the EMAS to go long or
short.
4. I prefer to open the position with 2 lots and close half the position with 20-30 pips of
profit, and move my sl to breakeven with the other lot, in case that the market begin to
trend, we can win more pips, and if the price begin to go against you, you keep the 20-30
of the other lot.
5. Always put sl of 20-25. This strategy presents like 10-12 oportunities in a month and it
is 90 % accurate.
6. Avoid to use this strategy when is big news day.
7. In the 15 min chart I had some bad signals and in the one hour chart we enter late to
the party of pips. This system can work for the GBP/USD too, but your stop have to be
like 30-40 pips.


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Monday, 27 August 2012

Simple Trading Strategy with Daily range

This method is basically to do with what a pair moved like the previous 24 hour period. In this, I will use the GBPJPY, but one could use it on any pair.

Forex signal indicator Method/Strategy:
You choose your own 24 hour period move - here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).
Mark the High, Low and Close for selected 24 hours.

For example, the GBPJPY for the last 24 hours was: H138.67 L136.00 and C138.13
Now total movement was (high-low) 267 pips.
You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close - 67 pips)

Set your TP also only to 25% of the previous days move - in this case also 67 pips.
In theory, if the chosen pair then move only 50% of the previous days total move....
Set your SL levels 10 pips away from the opposite order

------ by Stuart BE ---------
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Thursday, 9 August 2012

Forex Indicator MACD 3-5-3

DearTrader
I�m going to reveal to you how to super-charge your indicators today...
You�re going get a complete, step-by-step guide on how to �hack� your indicators to:
-              Remove �lagging�
-              Find pin-point, laser-targeted entries
-              Boost your trading confidence
Not only that...
But this is something you will be learning (and trading) in less than ten minutes!
(I promise not to give you any �fluff� or �filler� and to keep this as short as I can)

Here�s Where Many Traders Go Wrong With Their Indicators...
Traders will use, say, a 10-period moving average and a 20-period moving average.
They will then wait for this 10MA to cross up above the 20MA � then BUY.
The problem with this is that price can already have made a significant move � like this:

In the chart above then you can see that price has already made a 34-pip move before the MAs have even crossed!
That�s no use to you is it? No. I didn�t think so.
Here�s the deal...
There are many things I can show you, but...
I�m Going To Show You The Simplest Way To �Hack� Your Indicators...
Here�s how it works...
I�m going to show you how to use the MACD indicator as an incredible �trigger� to entering trades.
You will be entering trades at the absolute lowest risk-point - in other words...
You Have A Very Small Stoploss!
The key to using the MACD in this way is forgetting the �Default Settings� of 12, 26 and 9.
We�re interested in bringing that right down to something like 2,6,2 or 3,5,3.
These numbers allow us to �super-charge� the MACD indicator so that it reacts quicker to the market that it would otherwise!
What we�re doing is riding-the-momentum of the market and using the MACD to �slingshot� us into a high-momentum trade.
Not only that... but we�re getting in with a very small stoploss too.
Let� say we�re using the MACD with 3,5,3 settings - take a look at this chart...
The easiest way to use the 3,5,3 settings for a BUY trade is to wait for the MACD to drop below 0.0 and then rise above it � like this:


This is an example from a couple of days ago - and it�s a good one!
But, you�re smart enough to understand that not every trading day is going to be this good, right? Good.
(A SELL trade would require the MACD to rise above 0.0 and then fall below)
Remember...
I recommend you use a little trial-and-error, and experimenting with the MACD and the lower-number settings.

--------- by sbudij -------- honest pip -----------




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Friday, 1 June 2012

Simple Forex Strategy


Dear Traders. I found another very simple but very powerful system in my
Free Forex Systems library. It�s a free system and available for free on some
free Forex websites in different variations. I like it and I thought you may be
interested to try it.
Description:
Simple Strategy. Using Slow MACD Indicator & Fast Stochastic.
This strategy is very simple and successful but will not get you in at the
beginning of the move or exit at the end but will give a high success rate.
Setup:
Timeframe: Any
Currency:Any
MACD: 21 55 8
Stochastic: 8 3 5
How it works:
When the MACD Line and Signal Line cross, wait for the Stochastic to cross in
the same direction!! (Don`t trade if Stochastic in overbought/oversold
zones)If you are an agressive trader you can enter when the MACD and
Stochastic cross at the same time, otherwise once the MACD has crossed, wait
for the Stochastic to cross before entering. (The MACD must cross first)
Exit the trade when the MACD lines cross back.


 1 � MACD signal line cross 2 - Stoch crossed in the SAME direction 3 �
ENTRY POINT ( long in this case) 4 � Recommended Stop loss 3 pips below
the nearest (in this case) support level
Stop loss: Place a stop loss Recommended Stop loss 3 pips below for LONG
entries or 3 pips above for SHORT entries the nearest support (for LONG) or
resistance (for SHORT) levels


 source  fr Karl Dtm     by : sbudij

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Thursday, 17 May 2012

Forex TRAPPING Strategy



This method is basically to do with what a pair moved like the previous 24 hour period.
In this, I will use the GBPJPY, but one could use it on any pair.

Method/Strategy:
You choose your own 24 hour period move - here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).
Mark the High, Low and Close for selected 24 hours.

For example, the GBPJPY for the last 24 hours was: H 138.67 L136.00 and C 138.13
Now total movement was (high-low) 267 pips.

You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close - 67 pips)
Set your TP also only to 25% of the previous days move - in this case also 67 pips. In theory, if the chosen pair then move only 50% of the previous days total move, you profit ...
Set your SL levels 10 pips away from the opposite order.

Depending on what time zone you are in, I would suggest setting your orders before "your" market opens ... in my case it would be the London Market at 08:00 GMT.


source fr other fx blog's


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Saturday, 17 September 2011

Trend Finder Indicator

Spikes Trend Finder

I want to share a new system that I've been using.
It's very simple, Still room for improvements. Or eventually,
to semi-automate it. And send an email alert to my phone,
When conditions are right.

Well lets get to it.

1. You use the Day, 4h, 1h, Charts
2. Always trade with the trend
3. Always set SL, And TSL.
(EURUSD,EURJPY,GBPUSD,AND GBPJPY = 100/100)
(All others = 50/50)

You start with 2 MA's, An 18 smoothed open, With a 14 smoothed closed
These are to verify over all trend

Next, You will have 3 sets of RSI's on the bottom.

First set : 2 RSI's , An 88 period open, And a 56 period closed, No set min or max

Second set : 2 RSI's , An 88 period closed, And a 56 period open, No set min or max

Third set
: 2 RSI's , An 2 period open, And a 2 period closed, set 0 min and 100
max With 20,80 lines, Or 10,90 lines, Your chose



In a downward trend,
You wait until price hits, or passes the first MA,
On the 1h chart,Before you ever look for a reversal.
Of coarse, The closer to the average you can get on
the day chart, the better.

First, Look at the MA's, And make sure they are
staying parallel, Or expanding

Next, You look for a cross, On all 3 RSI indicators at the bottom

Then I place my trade with SL, And TSL.
I don't use a TP, But a TSL instead.
I'm a big fan of set it, and forget it trading

You would just reverse this for an upward trend.

---- sbudij by Spike fx factory ------

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Sunday, 10 April 2011

Forex Trend Following Strategies

FX5 Forex Trading Strategy
FX5 forex trading strategy is a simple and effective trend following method for any major exchange rate. I hope you can adapt this strategy to suit your trading style.
Strategy Description: An intra day forex trend following trading method, using the
following technical indicators:
� 10 period WMA (Weighted Moving Average)
� 20 period SMA (Simple Moving Average)
� Slow Stochastic (10,6,6 (exponential))
� RSI (28)
� MACD (24/52/18 (exponential))

Forex Trading Rules:
1) Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.
2) BUY the exchange rate when the 10 WMA crosses up past the 20 SMA and the Stochastic is signaling up (fast line above the slow line), RSI > 50 and the MACD histogram >0 and MACD averages crossed up.
3) SELL the exchange rate when the 10 WMA crosses down past the 20 SMA and the Stochastic is signaling down (fast line below slow line), RSI<50 and the MACD histogram <0 and MACD averages crossed down. 4) Try and take profits at or near key levels: Try and take profits at exchange rates ending with 00, 20, 50, 80 e.g. EUR/USD 1.1980 5) Stop-Loss Level: discretionary or below/above most recent level of support and resistance.

----- by Erol Bortucene -------
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Thursday, 3 March 2011

YoutradeFX - Futures Broker

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---- YTFX === by ; sbudij -----
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Thursday, 13 January 2011

ZULUTRADE News Update

I . ZULUTRADE Signal Provider Performance
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see..MARCH 2011...update�ZULUTRADE Signal Providers Performance... Click here

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-View your account equity and profit/loss
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Mouse over the ZuluTrade widget for controls. Use left/right button for previous/next provider. Up/Down button changes between screens.
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--- sbudij - Karawang Forex--------

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Wednesday, 18 November 2009

Forex Trading Strategies : DMI and Psar

Directional Movement Index and Parabolic SAR
DMI and Parabolic SAR are very efficient trend indicators and are used often by traders for developing of their strategies. These indicators could be used separately and in combination with other technical studies. The DMI system is plotted by three lines: ADX, +DI and -DI, and could be used for generating of signals or trend filter:

Rising ADX shows that the market has a clear direction and is in a trending mode;

Declining ADX shows that the trend is losing steam or the market is in consolidation phase;
When ADX is above 20-25, the market is in a clear trend.

DMI system generates the following signals:
Rules for long position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form below to above the chart of the price. The bar when this happens is marked as Signal bar.

3. Long position is initiated when the price breaks 2-3 pips above the high of the Signal bar.

4. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.

5. A limit order is placed according our Money management rules.
Rules for short position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form above to below the chart of the price. The bar when this happens is marked as Signal bar..

3. Short position is initiated when the price breaks 2-3 pips below the low of the Signal bar.

4. After the position is open an initial stop loss order is placed 2-3 pips above the high signal bar.

5. A limit order is placed according to our Money management rules.

Indicator chart



----- by ; Svetlin Minev / M.Popov ------
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Friday, 16 October 2009

Forex Trading Strategy

3 Simple Breakout Strategies You Can Use When Trading Forex
This article describes three different ways you can trade forex breakouts.
Trading breakouts is one of the most popular methods of trading the forex markets because you often get large moves after a period of consolidation. So with that in mind, I've listed below three basic strategies you can use to trade these breakouts.

The first of which is based on technical analysis, and in particular the Bollinger Bands indicator. Bollinger Bands are envelopes based on a moving average and a standard deviation and are most useful in showing areas of support and resistance through the two outer lines of the envelope.

Therefore when the price breaks out of either the upper or lower limit, this very often is a strong indication that a breakout is about to take place in the same direction. It's particularly the case after a period of consolidation where the bandwidth of the Bollinger Bands has narrowed out. For greater success you can use the breaching of one of the outer lines to gain your attention, and then wait for a pullback to either the EMA (5) or EMA (20), for example, for a good entry point.

The second method you can use to trade breakouts is also based on technical analysis and involves various Exponential Moving Averages, or EMA's for short. This is a method I have developed over the years that makes use of the 5, 20 and 50 period EMA's (you can also use the 100 or 200 period EMA as well).

What you do is wait until the price, along with the 5, 20 and 50 period EMA's have all flattened out and are all very close to each other. Then you simply wait for a strong breakout from this narrow range and take a position close to the EMA (5) when the breakout takes place. This can be very rewarding when you catch a good breakout, particular when you use longer time frames.

The final method is based entirely on price and uses no technical indicators at all. It's based on the fact that the price does not stay in the same range forever and will at some point break out of the current trading range.

I have to admit I don't use this method myself but there are various ways you can trade this way. Some traders like to use the previous day's upper and lower price range, and trade any breakouts of this range the following day. Similarly some traders wait until a very narrow price range has formed and then wait for a breakout to occur.

So overall there are various different ways you can trade breakouts, all of which have their merits. Despite being quite basic methods, they can be extremely lucrative because the price often moves strongly in one direction or the other after a sustained period of consolidation
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Sunday, 4 October 2009

Forex ; Elder-rays

Elder-ray system, Developed in 1989, The Elder-rays use exponential moving average indicator, or EMA, the preferable period of which is 13 as a tracing indicator. The oscillators reflect the bears' and bulls' power.

The Elder-rays include the characteristics of trend following indicators and oscillators. Three charts for placing the Elder-rays are used: on one side - the price chart and EMA are placed, on two other sides - bulls' power oscillator, or just Bulls Power, and bears' power oscillator, or just Bears Power.

Elder-rays can be used either individually or in bunch with various other tools. While using them individually, it's important to remember that the EMA slope defines the trend movement, and position should be opened in its direction.
The Elder Ray is a very precise and effective means of highlighting discrepancies between bull and bear power and prices and helping to choose right time for the best trading opportunities.

Bulls and bears power oscillators are used for determining the moment for opening or closing of positions. One should open the following positions:

It's better to sell when:
1. The Bulls Power oscillator remains positive, but declines step by step;
2. The Bulls Power oscillator declines leaving the Bears' discrepancy;
3. The last bottom of the Bulls Power oscillator is lower than the previous one;
4. There is a decreasing trend defined with the EMA fluctuations

The Elder Ray index actually consists of two indicators:
"Bull Power" (Daily High - n period moving average) and
"Bear Power" (Daily Low - n period moving average).

It's better to purchase when:
1. The Bears Power oscillator is negative, but still growing;
2. The Bears Power oscillator increases after the Bulls discrepancy;
3. The last peak of the Bulls Power oscillator is higher than the previous one;
4. There is an increasing trend defined with the EMA fluctuations



It is better to keep back at the positive values of the Bears Power oscillator and not to open short positions when the Bulls Power oscillator is negative. The best time for trading is discrepancy between the Bulls and Bears Power and prices.
In fact, the Elder Ray index includes 2 indicators: "Bear Power" (Daily Low - n period moving average) and "Bull Power" (Daily High - n period moving average)/

Bear Power is used to calculate the potential for the price to fall under the moving average. And Bull Power is used for calculating the potential for the price to grow over the moving average. There are short positions when the Bull Power is more than zero and there is a bearish discrepancy. And Long positions are assumed when the Bear Power remains under zero and there is a bullish discrepancy.
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Saturday, 26 September 2009

Forex Trading System

Profit With Forex Opening Range Breakouts
Many forex traders like to incorporate forex breakouts into their overall trading strategy because they can be extremely profitable. When a price finally breaks out of a tight trading range, many traders tend to jump on board and carry the price further away from this trading range, which is why this strategy is so effective.

Focus on Opening Range Breakouts

One of the most popular ways of trading these breakouts is by focusing specifically on overnight / opening range breakouts. By that I mean the opening hours of the new trading day. I myself tend to focus on the hours between 00.00 and 06.00 GMT and predominantly concentrate on the British and European-based pairs such as the GBP/USD and EUR/USD pairs, for instance.

These hours are notoriously quiet and yet these few hours before the busy opening session set the tone for the rest of the day. You will often find that the price will stay confined in a fairly tight range during these six hours or so and when the UK and European markets open, the price will trend significantly in one direction and will often break strongly out of this initial trading range.

Therefore a profitable strategy is to open a long position when the high point of this opening range is breached and open a short position when the low point is breached. There are various ways you can put this system into practice. You can either open a position as soon as the price crosses the line or as soon as the breakout candle closes, or you can wait for a pull-back and then jump on board if the price continues to move in the direction of the initial breakout.

All of these methods tend to work quite well and there is a logical reason why this is the case. The fact is that every currency pair has an average daily range, i.e the average number of points between the high and low points for a given trading day. So on those days where the opening range is very narrow, this initial range will be a mere fraction of the overall average, so therefore you can expect some big price moves to occur during the rest of the day either above or below the overnight range.


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Forex Trading Indicator

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Monday, 14 September 2009

Forex - RSI and Divergence

Technical indicators are constructed by manipulating some aspect of price such as a moving average of prices over a 10 day period. The Relative Strength Indicator (RSI) tries to anticipate a change in the trend.

This is a leading indicator of a trend change. The results are used to deliver messages about the strength of the market. It is called an oscillator because the indicator readings are converted into percentage results which range from 0% to 100%. The position of each day�s indicator reading gives the trader an indication of the strength, or weakness, of the existing price trend.

The RSI is calculated by monitoring changes in the closing prices of the stock. The number of higher closes is compared to the number of lower closes for the selected period.


The RSI compares the internal strength of a stock by looking at the average of the upwards price changes and comparing it with the average of the downward price changes.

The results are expressed as a percentage, providing the upper and lower boundaries. The plotted results oscillate between these two levels and give traders information about the speed and acceleration of the changes.

Traders use either a 14, 9, or 7 day period in the Relative Strength Calculation.
In this sense the RSI is very similar to a stochastic and uses similar principles. Where the stochastic quantifies the ability of the market to close near the high or the low of the day, the RSI quantifies the strength of the way the market moves higher, or lower. The over-bought and over-sold signals are the same as any oscillator, although with an RSI they are traditionally set at 70% and 30%.
The most significant trading signal delivered by any oscillator style indicator is a divergence signal. This sounds complicated but it just means that the significant valley patterns shown by the RSI trend in the opposite direction to the significant valley patterns as shown by the price line chart. A valley is created by two distinct lows that each precede a rally from a downtrend. This builds a valley in the price chart. The lows of these valleys are joined with a short trend line as shown.
The corresponding lows on the RSI indicator are also joined by a short trend line. When the RSI line slopes differently from the price chart line, a divergence occurs. When these valleys form below the 30% area on the RSI, or form peaks above the 70% level, they are most reliable. Oscillator activity between these levels is not used to find divergence signals.
signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.

signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.
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Sunday, 6 September 2009

Forex Schaff Scalping Strategy

here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.

However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.

Here goes my Scalping method:

Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping

Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend

Go Short When:

1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75 3. MACD is in downtrend 4. Parabolic is in downtrend Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.

Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.

Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)

Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.

Once again, good luck with your trades and keep making pips
Here is another example of Scalping with Schaff Trend ...

Note that I've used 10 and 90 as the Trend Changing readings for Schaff. Also note that DMI (along with ADX) can also be used as an additional confirmation.


---- SBJ -- Asherewt -- FxstrategyRvld ---
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Wednesday, 2 September 2009

Forex Strategy ; Two Timeframes ("TC Experts")

This strategy uses the TC Expert indicator in Two Timeframes. The 1-Hour TC Expert is used to determines trend. The TC Expert on a 10-Minute Chart is used for Trade Entry and Exit.
When the 1-Hour TC Expert is bullish, for example, then Trend is UP, and the strategy will buy when the 10-Minute TC Expert turns bullish. The strategy exits a buy trade when the 10-minute Expert turns bearish, or when price closes below a Gann Hi/Lo line that is used as a trailing stop.
Indicators used in this strategy & their inputs:
1-Hour Chart: TC Expert (7,18,36,7)
10-Minute Chart: TC Expert (7,18,36,7)
Gann Hi/Lo Activator - Gann HiLoA(7)


Chart 1. The TC Expert is composed of two separate indicators.
Trend
Trend is the direction of the TC Expert on the 1-Hour Chart. When the Schaff TC Expert is applied to the chart, two indicators appear, both a black Schaff Trend Cycle (�STC�) and a green Schaff Trend RSI (�STR�).


Chart 2. Trend changes are highlighted by the the red and blue vertical lines, after which the TC Expert indicator turns bearish and bullish, respectively.
Trend is UP when the TC Expert is bullish. The TC Expert is bullish when both the black STC and the green STR are rising above the lower red-dotted Buy line shown in Chart 2.
Trend is DOWN when the TC Expert is bearish. The TC Expert is bearish when both the black STC and the green STR are falling below the upper red-dotted Sell Line.
Trade Entry
The strategy uses the TC Expert and a Gann HiLo line on a 10-Minute Chart to time when to enter a trade. When Trend is UP the strategy will buy when price is above the Gann HiLo line and the 10-Minute TC Expert turns bullish. If Trend is DOWN the strategy sells when price is below the 10-Minute Gann HiLo line and the 10-Minute TC Expert turns bearish then the strategy sells.

Chart 3. With a DOWN Trend in place, a Sell Entry occurs on the 10-Minute Chart at 9:20 at 2.0387.
TC Expert Strategy: Buy Entry and Sell Entry rules:
BUY when 1-Hour Trend is UP and
1. The 10-Minute TC Expert turns bullish and
2. Price is above the Gann HiLo line
SELL when 1-Hour Trend is DOWN and
1. The 10-Minute TC Expert turns bearish and
2. Price is below the Gann HiLo line
Trade Exit
Various exit tactics are used, depending on how price could develop.
Trend Indicator Changes Direction
If the 1-Hour Trend changes direction then exit the trade.
Trade Entry Indicator Changes Direction
If the 10-Minute TC Expert changes direction then exit the trade.
Price Closes beyond Trailing Stop
The Gann HiLo line is used as a Trailing Stop on the 10-Minute Chart. If the strategy position is long, then exit if the 10-Minute price closes below the Gann HiLo. If the strategy is short, then exit if price closes above the Gann HiLo.
The chart below follows the GBPUSD trade shown in Chart 3.


Chart 4. The sell position exits when the 10-Minute TC Expert turns bullish.
The sell trade entered on October 3 at 9:20, at 2.0387, exited at 16:40, at 2.0313, when the 10-Minute TC Expert turned bullish (with both the STC and STR rising above 25). The result is a profit of 74 pips.
TC Expert Strategy: Buy Exit and Sell Exit rules:
Exit a BUY Position if one of the following situations occur
1. Trend changes to DOWN, or
2. The 10-Minute TC Expert turns Bearish, or
3. Price closes below the Gann HiLo on the 10-Minute Chart.
Exit a SELL Position if one of the following situations occur
1. Trend changes to UP or
2. The 10-Minute TC Expert turns Bullish or
3. Price closes above the Gann HiLo on the 10-Minute Chart.
Initial Stop Loss Order: Controls trade risk. Establish before the trade.

--- by : FX Strategy --------
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Sunday, 23 August 2009

Forex Stochastic Momentum Index

Stochastic Momentum Index
SMI was created by William Blau in January 1993 issue of Technical Analysis of Stocks & Commodities. The SMI demonstrates where the close is relative to the middle of the last high/low range, in comparison to the close relative to the recent low/high with the Stochastic Oscillator, which resembles the Stochastic Momentum Index.
It's an oscillator that shifts between -100 and +100 and can be a bit less inconstant than an equal period Stochastic Oscillator. The oscillator consists of 2 lines - the moving average of the SMI (red) and the SMI (blue). The SMI will be negative if the close is less than the middle point of the range. The SMI will be positive if the close is greater than the middle point of the range.
The SMI interpretation is in fact the same as that of the Stochastic Oscillator. The most ordinary way of using it is to trade from is to sell when the SMI rises above +40 and then returns to the point under that level and to purchase at the moment when the SMI decreases under -40 and then shifts back above it. Another trading sign is to purchase when the SMI shifts above the moving average, and sell when the SMI decreases below the moving average.
Usually before basing any trades on strict oversold or overbought levels it is better to qualify the trendiness of the market using an indicator, for example, R-Squared. Levels should provide the most effective results if indicators provide a non-trending market trades based on strict oversold or overbought. 
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Thursday, 16 July 2009

Forex Chart ; Symetrical triangle pattern

This pattern shows two converging trendlines (support levels & resistance levels) and is (1) a bearisch formation that usually forms during a currency pair downtrend as a continuation pattern (downtrend will continue) or (2) a bullish formation that usually forms during a currency pair uptrend as a continuation pattern. (uptrend will continue)

This pattern is confirmed when the currency pair price breaks out of the symmetrical triangle formation (1) to the downside and closes below the lower support trendline in order to continue the downtrend or (2) to the upside and closes above the upper resistance trendline in order to continue the uptrend.

What does a Symmetrical Triangle Formation look like?


The symmetrical triangle is marked by two important trend lines. At its top, there is a line of resistance where traders are willing to sell the currency pair. This resistance line communicates the fact that bearish currency traders are over time willing to pay lower and lower prices for the currency pair indicating a possible break out to the downside.

At it's bottom, the support line communicates the fact that bullish currency traders are over time willing to pay higher and higher prices for the currency pair indicating a possible break out to the upside.

How to trade this pattern?

For it's best prediction, an established trend should exist, either a strong down or a strong uptrend. Once the currency pair breaks out the symmetrical triangle, most likely, the price will continue it's previous trend.

Trade the breakout!

Chart example




Please note how the previous trend is an uptrend, once it breaks out the symmetrical triangle, it's uptrend continue! 
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