Forex-ology Simplified – 5 Unorthodox Steps of a Profitable Forex Technique
To start with, I wish to stress that this trading system of mine isn’t any holy grail and anybody can use it efficiently in the event that they comply with the principles of the trading system. I’ve been trading for years and that is one in every of my Foreign Exchange trading methods which have helped me make earnings persistently.
I’ve all the time stored my trading methods just because it is a straightforward system that works on this ever-changing brutal currency market. Stunned by that? Did you suppose that a profitable trading system must be refined and troublesome to make use of? Doing properly from the Foreign Exchange market relies on how successfully the trader himself makes use of the trading system and never how good the trading system is.
So now I’ll reveal a Foreign Exchange technique that I exploit fairly often to profit persistently from the market. After you learn it, you might suppose that really it is such an easy system. However, as I mentioned earlier, trading needs to be easy, do not complicate it. Beneath are the steps of my Foreign Exchange day trading technique:
- Step 1: Take a look at the principle trend utilizing a day by day chart. The primary look from left to proper of the chart ought to inform you it is a downtrend or uptrend.
- Step 2: After understanding what the principle Foreign Exchange trend is, I’ll go to the Forex Manufacturing unit web site to test for any information releases. If there are upcoming information in 2 hours, I will not even go to step Three to search for trading signals as a result of there’s an excessive probability of whipsaws.
- Step 3: If there is no such thing as information, I’ll put my Foreign Exchange trading plan into action. For instance, if the principle trend is up, I’ll solely be searching for purchase signals generated from my Foreign Exchange indicators, Vice versa if the principle trend is down.
- Step 4: Now that is essentially the most essential stage and my trading determination lies right here. I exploit the crossing of Four EMA (Exponential Moving Average) and 23 EMA to outline purchase and Sell signals on the 30-minute chart. There are different indicators concerned, the weekly pivot, Stochastic and MACD (Moving Average Convergence Divergence) should additionally comply with the trend and can’t look flat. I filter whipsaws by trading solely throughout excessive liquidity classes and checking whether or not the trend is identical utilizing Four hourly charts. That is all!
- Step 5: The trade is ready at a good to cease loss of around 35 pips whereas I’ve 2 strategies of focusing on profit. One is utilizing a wholesome threat to reward ratio of not less than 1:2. The second is utilizing day by day Support and resistance.
That is my profitable Foreign Exchange trading system. It is easy, is not it? In fact, threat Management, Money management, and psychology need to be mixed in this trading system for it to work correctly.