Firex Trading Strategy - GMT Forex Strategy

The advanced trading strategies rely not only on chart reading and number crunching but also on the order flows analysis. This is my most favorite strategy and it is based on a simple fact - order flows related to position sizing. Most of the major US economic data are released at 1:30 PM GMT which is in the beginning of the US trading. These data could cause big price moves and make the environment more risky. That is why a lot of market players prefer to have smaller positions before the real action begins and they usually close part of them. This happens between 12:30 and 1:30 PM GMT. This is an advanced trading strategy and I will share only the general principles here. More information and real examples you can find in our Blog. The rules for opening a position are as follows:
Trading Rules

1. The currency pair should be trending during the European morning trading. Usually this trend is in the direction of the breakout of the Asian trend after 8 AM London time. The strategy could be used also in ranging markets but the success rate will be lower.
2. Around 12:30 GMT (it is better at least a few minutes after) the market nears support (if the trend was down) or resistance level (if the trend was up). If the currency pair breaks 10-15 pips beyond the level we should avoid the position.
3. After the test of the support or resistance level we open a position in the opposite direction of the morning trend. A lot of filters could be used and I recommend developing and clarifying your own rules. You can find a lot of advice on this strategy and real examples in our Blog.
4. After we open a position we use Stop and Limit according to our money management rules.

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Forex Indicator ; Williams %R Strategy

Williams %R - Balance of Power Strategy
This indicator was developed by Larry Williams and it is a version of the Stochastic Oscillator. Its values are plotted on an inverted scale from 0 to -100. Williams %R is efficient in trending markets.

There are two interpretations of the signals:

* Values below -80 - -90 indicate an oversold market, while values above -10 - -20 show that the market is overbought (remember that the scale is inverted).

The other logic is opposite:

* When the value of %R is higher than -10 - -20 the market is in a strong uptrend and respectively when %R is lower than -80 - -90 there is a strong downtrend.

A Moving Average is used to confirm the trend direction.

In this example strategy we will exit the market when the Balance of Power indicator crosses the zero line in the position's direction. The position closing price will be Bar Closing.

We will use the following opening rules:
Rules for a long position

* Price is above the 50-period Moving Average (uptrend) and Williams %R goes above -10 (second signal for a strong uptrend0. The bar when this happens is marked as Signal bar.
* Long position is initiated when the price breaks above the high of the Signal bar.
* After opening a position we monitor Balance of Power indicator. When it crosses the zero line upward we close the position at the bar closing price.
* Adding: if the price is still higher than MA(50) and %R is above -10 line, we add to a long position at the previous bar high.

Rules for a short position

* Price is below the 50-period Moving Average (downtrend) and Williams %R goes below -90 line. The bar when this happens is marked as Signal bar.
* Short position is initiated when the price breaks below the low of the Signal bar.
* The exit is at the bar closing price, but only when BoP crosses the zero line downward.
* Adding: when the entry conditions are satisfied we sell at the previous low.


Indicator chart




--- by ; Svetlin Minev ------

Forex Trading Strategies

Forex Tech.Strategies - 3 Bar Buy / Low Set Up
This is a classic swing trading strategy which is trying to catch the next immediate price movement in the direction of the prevailing trend. Three consecutive lower highs in an uptrend and higher lows in a downtrend show that the correction is exhausted and new move in the direction of the trend could be expected. The following signals are generated:

Rules for long position

1. The market is in an uptrend. This could be identified by the fact that the price is above the 50-period Moving Average; MACD or Momentum are above 0; or ADX is above 25 an +DI is above -DI.
2. After a correction of the up move the last three bars have lower highs. The last of these three bars 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. We can close the position when one of our indicators shows that the uptrend is over.



Rules for short position

1. The market is in an downtrend. This could be identified by the fact that the price is below the 50-period Moving Average; MACD or Momentum are below 0; or ADX is above 25 an -DI is above +DI.
2. After a correction of the down move the last three bars have higher lows. The last of these three bars 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 of the signal bar.
5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows that the downtrend is over.


---- by ; Svetlin Minev / M. Popov -----

Forex Trading Strategy

Forex - Trend Line Trading Strategy
I have been demoing a simple trading strategy,
I am calling this a Trend Line Trading Strategy and it is based on:

Following the trend.
Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here. Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend?
It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here. KISS… KEEP IT SIMPLE & SIMPLE.

TIMEFRAMES:
Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins

INDICATOR:
I use only 1 Metatrader4 indicator called Swing ZZ / ZigZag It is freely available in the net. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy.
So lets get started shall we? I call this trendline trading strategy because it involves drawing trend lines using the swing highs and lows of the Swing ZZ indicator.

SHORT ENTRY RULES:
(a) look at the timeframe you wish to use and identify the main trend. Get the big picture first, that is very important.
For me, when I want to trade on the hourly chart, I first check the daily chart and also like to see what is happening in the 4hr chart as well to see if I can spot an obvious trend or channel or congestion happening in the daily and the
4hour charts. I stay out if there is congestion until breakout of the congestion happens and a trend is established. I draw trendlines in the daily or on the 4rhly charts chart then switch to the 1hr timeframe. I identify trends in the hourly and draw trendline(s) as well.
(b) I place a sell stop order, at least 5 – 10 pips below the LOW of the candle that touches or intersects the trendline. The trendline can be the daily, 4hrly or the 1hr trendline. You must place your order when that candle closes. Note you must wait for price to approach a trendline or very near to the trendline before you place your sell stop order.
(c) I prefer to place my stop loss at least 5 pips above the most recent swing high. You should set your stop loss according to your money management calculations and risk tolerance.
(d) I set my profit target just WITHIN the level of previous swing low.
(e) Trade management: as trade moves in my favour, I move my stop loss to at least 5 pips ABOVE each lower subsequent peaks (lower swing highs).
LONG ENTRY RULES:
Just do the exact opposite of short entry.
(1) Set your buy stop order 5 pips ABOVE the high of the candle that intersects the trendline when that candle CLOSES.
(2) I set my stop loss just below the recent low.
(3) I place my profit target WITHIN the level of the previous high.
(4) As trade moves in my favour I move stop loss to at least 5 pips just UNDER each higher subsequent higher swing lows that form.

SHORT ENTRY EXAMPLE:
The attached is 4hr USD/JPY chart showing short trades that could have been taken and would have been very profitable using this strategy.

LONG ENTRY EXAMPLE:
Attached is USD/CAD daily chart and possible trade entries are shown to give you a visual understanding of how to identify potential trade setup and take them.

You can combined this system w/ superwoodieCCI indicator

--- by; Myroon ------

Forex Strategy - simple indicator

Simple indicators forex strategy works well on the range of M15, the currency pair can be any; On the schedule for the chosen currency pair, you must install the indicators for forex trading terminal Metatrader 4:

1) Indicator - Heikin ashi
2) Exponential Moving Average - EMA (5), close - the color blue
2) Exponential Moving Average - EMA (8), open - the color green
3) Indicator - Dinapoli stoch (8,3,3)
4) Indicator - Momentum VT (10)
5) Indicator - QQE Alert v3.

All the necessary indicators, together with a template for MT4 can be downloaded at the end of this strategy forex.

Entering the market for BUY - if all the following conditions:

1) Exponential Moving Average EMA (5) and EMA (8) crossed up.
2) Indicator Dinapoli stochastic just crossed paths up (blue line crossed the red bottom-up)
3) Indicator MomentumVT (10) is above its zero level.
4) Indicator QQE arrow drawn up (possibly even a few bars earlier).
5) bar is painted in white.

Entering the market needs to produce the next candle after all conditions to the transaction.

Closure of a trading position - as the only indicator QQE alert and moving averages EMA (5) and EMA (8) are fed back trading signals. But since they rarely ring the trading bell at the same time, then close the deal, only in cases where 2, these signals were received.

---- by ; ForexStrategies ------

Forex ; Keltner Channel Indicator

Keltner channel is a popular indicator for analyzing trends and for finding trend changes. The indicator was introduced by Chester W. Keltner in 1960

Definition:
The Keltner Channel has two bands drawn above and below an exponential moving average, and is based on Average True Range.

Average True Range is measured by taking a moving average of the greatest value of (a) the distance between this period's high & low, (b) the distance from last period's close to this period's high or (c) the distance from last period's close to this period's low.

Peaks in ATR indicate potential trend reversals after panic selloffs or frantic buying, valleys can indicate consolidations.

The Keltner Channel uses the ATR calculation as values for the bands.

Formula:
The formula for the upper band of the Keltner Channel is to take twice the value of a 10-period ATR and add it to a 20-period exponential moving average. The formula for the lower band subtracts the same value from the 20-period EMA.

Interpretation:
The Keltner Channel is typically used to ride upward and downward volatility. When the price spikes above the upper band it can be considered a buy signal until the close for the period evaluated falls below the upper band. Conversely, when the price dips below the lower band it can be considered a sell signal.

Because the Keltner Channel is meant to take advantage of volatility swings and is a trend following indicator, it typically does not work well in sideways markets but works better in taking advantage of breakouts within in an estabished trend.

As with all band indicators, most traders looks for confirmation from other technical inidcators.