Telechargé par Abdoulaye Sar forex-strategy

Forex trading strategy #1 (Fast moving averages crossover).........................................................2
Forex trading strategy #2 (Slow moving averages crossover)........................................................3
Forex trading strategy #3 (Stochastic High-Low)..............................................................................4
Forex trading strategy #4 (RSI High-Low)..........................................................................................5
Forex trading strategy #5 (Stochastic lines crossover)....................................................................6
Forex trading strategy #6 (Double Stochastic)..................................................................................7
Forex trading strategy #7 (Simple MACD crossover)........................................................................8
Forex trading strategy #8 (EMA breakthrough).................................................................................9
Forex trading strategy #9 (Basic balanced system)........................................................................10
Forex trading strategy #10 (Parabolic SAR + ADX).........................................................................11
Forex trading strategy #11 (EUR/USD simple system)...................................................................12
Forex trading strategy #12 (Trend line tunnel)................................................................................13
Forex trading strategy #13 (Simple 1-2-3 swings)...........................................................................14
Forex trading strategy #14 (5x5 Simple system).............................................................................15
Forex trading strategy #15 ("Key Simplicity").................................................................................16
Forex trading strategy #16 (Simple breakout System)....................................................................17
Forex trading strategy #17 (Teodosi simple system)......................................................................19
Forex trading strategy #18 (Teodosi Moving Averages' tunnels)..................................................21
Forex trading strategy #19 (Egudu simple 4 tools trading)............................................................23
Forex trading strategy #20 (Trading MACD consolidation) ...........................................................24
Forex trading strategy #21 (Egudu EMA+ADX Strategy)................................................................25
Forex trading strategy #22 (H4 Bollinger Band Strategy)...............................................................26
Forex trading strategy #23 (GBP/JPY Breakout Strategy)..............................................................27
Forex trading strategy #25 (H4 Bollinger Band Breakouts) more to come...................................28
COMPLEX STRATEGY.......................................................................................................................29
Complex trading system #1 ("Multi-conditional")...........................................................................29
Complex trading system #2 (“2-Cross”)..........................................................................................30
Complex trading system #3 (Divergence)........................................................................................32
Complex trading system #4 (Trend trading with EMAs).................................................................33
Complex trading system #5 (Fibonacci trading) ............................................................................35
Complex trading system #6 (Munzer Forex System)......................................................................37
Complex trading system #7 (Mohammed Munzer Forex system) more to come.........................38
ADVANCED STRATEGY....................................................................................................................39
Advanced system #1 (Midnight setup).............................................................................................39
Advanced system #1-a (Midnight setup addition: Trading Breakouts of the Breakouts)............42
Advanced system #2 (Fibonacci trading).........................................................................................43
Advanced system #3 (Neat entry: RSI + Full Stochastic)...............................................................45
Advanced system #4 (Early bird Breakout System)........................................................................46
Advanced system #5 (Trend Lines Breakout System)....................................................................47
Advanced system #6 (Picking Tops and Bottoms) ........................................................................49
Advanced system #7 (EUR/USD breakout system).........................................................................51
Advanced system #8 (4 CANDLES STRATEGY) more to come.....................................................52
Forex trading strategy #1 (Fast moving averages crossover)
Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this
simple system.
Currency pairs: ANY
Time frame chart: 1 hour or 15 minute chart.
Indicators: 10 EMA, 25 EMA, 50 EMA.
Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the
direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to
close on the opposite site of 50 EMA. This waiting helps to avoid false signals).
Exit rules: option1: exit when 10 EMA crosses 25 EMA again.
option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current
price bar after so called “touch” has been closed on the opposite side of 50 EMA).
Advantages: it is easy to use, and it gives very good results when the market is trending, during big
price break-outs and big price moves.
Disadvantages: Fast moving average indicator is a follow-up indicator or it is also called lagging
indicator, which means it does not predict the future market directions, but rather reflects current
situation on the market. This characteristic makes it vulnerable. First, because it can change its signals
any time, second – you need to watch it all the time, third - when market trades sideways (does not
trending) with very little fluctuation in price it can give many false signals, so it is not suggested to use
it during such period.
Forex trading strategy #2 (Slow moving averages crossover)
Current strategy applies the same principles as Strategy #1.
Use time frame and currency which respond the best (1 hour, 1 day… or any other).
Indicators: (multiple of 7) 7 SMA, 14 SMA, 21 SMA.
Entry rules: When 7 SMA goes through 14 and continues through 21, BUY/SELL in the direction of 7
SMA once price gets through 21 SMA.
Exit rules: exit when 7 SMA goes back and touches 21 SMA.
Advantages: again it is an easy set up and does not require any calculations or other studies. Can
produce very good results during strong market moves, the system also can be easily programmed
and traded automatically.
Disadvantages: System requires periodical monitoring according to a chosen time frame. SMA
indicator signal can be confirmed after the current price bar has been fully formed and closed. In other
words, when SMA stops changing and the signal is fixed, traders may rely on such information to open
a trade.
Forex trading strategy #3 (Stochastic High-Low)
Forex systems which adopt a Stochastic indicator for monitoring the price provide some very good tips
about the situation on the market for traders that are willing to see it.
Currency pair: Any.
Time frame: Any.
Indicator: Full Stochastic (14, 3, 3)
Entry rules: When Stochastic has crossed below 20, reached 10, and then crossed back up through
20 – set BUY order.
Entry rules: Sell when Stochastic has crossed above 80, reached 90, and then crossed back down
through 80.
Exit rules: close trade when Stochastic lines rich the opposite side (80 for Buy order, 20 for Sell order).
Advantages: gives quite accurate entry/exit signals in well trending market.
Disadvantages: needs periodical monitoring. Stochastic is suggested to be used along with other
indicators to eliminated entering on false signals.
//In simple words, Stochastic oscillator uses two lines: %K - a fast line and %D - a slow line.
%K line is calculated using the most recent close, the highest high over the last X days and the lowest low over the last X days.
%D line is a Y period moving average of %K
General rules can be described as follows:
Signals to Buy and Sell occur when %K crosses above or below %D.
Reading above 80 suggests an overbought market and reading below 20 - oversold.//
Forex trading strategy #4 (RSI High-Low)
Although no trading system can solely rely on RSI indicator, using it in combination with other tools
and proper technical analysis can bring a new edge to your Forex trading.
Currency pair: Any.
Time frame: Any.
Indicator: RSI (14, 70, 30)
Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through
Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down
through 70.
Exit rules: not set.
Advantages: RSI is a very good indicator to refer for confirmation for any entry in any simple or
complex trading system. For current trading method it advices well on entries, but opportunities occur
not that often.
Disadvantages: monitoring is needed, still false signals take place. Strategy is suggested to be used in
combination with other ones.
//You may try combining RSI with Stochastic (5, 3, 3). Entry should be initiated on Stochastic lines cross and only if RSI has
returned from overbought/oversold area. Not all Stochastic crosses are valid for entry though. Use only those that occur below
30 and above 70.//
Forex trading strategy #5 (Stochastic lines crossover)
Here is a very basic overview of a role of a Stochastic indicator in the Forex trading. Knowing exactly
what to expect from Stochastic, if you ever plan to add it to your own system, will affect trading results
dramatically. For this trading method:
Currency pair: Any.
Time frame: Any.
Indicator: Stochastic (14, 3, 3)
Entry rules: Buy when the faster moving Stochastic line crosses above and up over slower moving
stochastic line.
Exit rules: Sell when the opposite situation (next crossover) occurs and right after that open an
opposite position. It is again recommended, once the first touch of Stochastic lines (possible future
crossover) has been spotted, to wait until the following price bar on the chart has closed and only then
take actions.
Advantages: can give entry and exit rules, easy to use.
Disadvantages: Stochastic is a lagging indicator – with this lines crossover system it can create a lot of
false signals. Traders may want to change Stochastic regular settings for each particular currency pair
to eliminate as many false signals as possible. Stochastic crossover system is good when used in
combination with other indicators.
Forex trading strategy #6 (Double Stochastic)
By doubling on Stochastic analysis we are doubling on trading accuracy... However, one should
remember that with each new Forex tool added complexity can appear; and a very complex approach
is not always good.
Strategy Requirements:
Currency pairs: ANY
Time frame chart: 1 hour, 1 day
Indicators: Full Stochastic (21, 9, 9) and Full Stochastic (9, 3, 3).
Entry rules: When the Stochastic (21, 9, 9) lines’ crossover appears – enter (or wait for the current
price bar to close and then enter). It will be the major trend.
Look at Stochastic (9, 3, 3) to anticipate swings inside the main trend and re-enter+ the market again –
additional entries. Also ignore the short-term moves Stochastic (9, 3, 3) that signal for exit – do not exit
early until Stochastic (21, 9, 9) gives a clear signal to do so.
Exit rules: at the next cross of major Stochastic (21, 9, 9) lines.
Advantages: using two Stochastic indicators helps to see the major trend and the swings inside it. This
gives more accurate entry ruless and gives a good exit rules.
Disadvantages: needs constant monitoring, and again we are dealing with a lagging indicator.
Forex trading strategy #7 (Simple MACD crossover)
Trading with MACD indicator is widely used by Forex traders.
Let's take a glance at the very basis of currencies trading with MACD indicator.
We will need only MACD indicator with standard settings: 12, 26, 9.
Any time frame as well as any currency pair can be used.
Entry rules: When the MACD lines’ crossover appears – enter (or wait for the price bar to close and
then enter).
Exit rules: when MACD lines next crossover occurs.
Advantages: very simple approach and can give good profitable entries. Traders may want to change
MACD default settings depending on the currency and chosen time frame. For example, traders may
test next MACD set ups: USD/CHF MACD (04, 07, 16), EUR/USD MACD (02, 03, 20), GBP/USD
MACD (02, 03, 04) for different time frames.
Disadvantages: you will need to sit and monitor it again and again. MACD has little use in sideways
trading market. It is also never used alone, but rather in combination with other indicators.
Forex trading strategy #8 (EMA breakthrough)
Sooner or later all Forex traders begin experimenting with different EMA settings.
Quite often very interesting combinations can be spotted. Here is one Simple Forex system based on
50 EMA indicator.
Any currency pair.
Time frame: 90 minute or 3 hour chart
Indicator: 50 EMA.
Entry: watch for 50 EMA to pierce the candle bar and finally close above (to enter Long) or below (to
go Short). Enter with the second candle after it makes 5 pips higher than the previous one.
Exit: not set.
Stop loss order: 15 pips below 50 EMA.
Forex trading strategy #9 (Basic balanced system)
Current Forex trading system represents a well thought and very simple combination of indicators.
Knowing what signal to look for with each indicator, provides a strong tip for good entries and exits.
Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA, Stochastic (14, 3, 3), RSI (14, 70, 30)
Entry rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and
Stochastic is not in overbought position (above 80.00 level) and RSI is above 50.
Entry rules: Sell when 5 EMA crosses below 10 EMA and Stochastic lines are heading south (down)
and Stochastic is not in oversold position (below 20.00 level), and RSI is below 50.
Exit rules: when 5 EMA and 10 EMA cross in the opposite direction or if RSI crosses the 50 mark
Advantages: allows filtering entries and thus is more accurate.
Disadvantages: 5 and 10 EMAs can give very early exit signals.
Forex trading strategy #10 (Parabolic SAR + ADX)
The two indicators we are going to talk about here are found to be very well working when used side
by side. This Forex trading system is an another simple discovery; and hundreds of such discoveries
can be made when traders are there to learn and experiment.
Any currency pair and time frame can be used.
Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)
Entry rules: Sell When the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When
the +DI line is above the -DI line, all Parabolic sell signals must be ignored.
Entry rules: buy when the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the
+DI line is below the -DI line, all Parabolic buy signals must be ignored.
Exit rules: when +DI line and -DI lines have crossed again.
Also the higher the ADX rising - the stronger the current trend is. If ADX has reached 25, the strong
trend is in place.
Advantages: allows filtering entries and predicting good exits.
Disadvantages: Both Parabolic SAR and ADX are follow-up indicators. Although they complement
each other very effectively, the “weakest” in chain is ADX, because during trading it can give one
signal, but later change to the opposite. Once given a signal from ADX, waiting for the current price
bar to close to avoid such misleading is advised.
Forex trading strategy #11 (EUR/USD simple system)
As we move forward we discover a strategy that fits only chosen currency pairs.
Take a look at the next Forex trading system:
Currency pair: EUR/USD.
Time frame: 30 min.
Indicators: MACD (12, 26, 9), Parabolic SAR default settings (0.02, 0.2)
Entry rules: When Parabolic SAR gives buy signal and MACD lines crossed upwards – buy.
When Parabolic SAR gives sell signal and MACD lines crossed downwards – sell.
Exit rules: exit at the next MACD lines crossover or if the market starts trading sideways for some time.
Forex trading strategy #12 (Trend line tunnel)
Creating a support/resistance tunnel on the price congestion and trading on the break of this tunnel is
a milestone of Forex trading discoveries.
This trading system/approach needs no indicators and can be applied to any currency and traded in
any time frame where coiling in a tight range is spotted.
Entry rules: Find consolidation on the chart and draw two horizontal trend lines – support and
resistance. Once the price breaks trough one of the trend lines and a current price bar closes outside
the tunnel – buy/sell in the direction of the breakout. (If price pierces the trend line, but did not close
outside the tunnel, cancel the previous trend line and draw another one according to the new
Note: also very often happens that once the price makes it through support or resistance it rocks
down/up very quickly and so, more aggressive entry can also be adopted – without waiting for the
current price bar to close.
Exit rules: not set, however, it is believed, that the price after breaking the tunnel will travel the
distance equal to the width of that tunnel.
Advantages: very simple and extremely effective. It can provide 100% profitable entries if short profits
are taken - usually with the close of the first candle right after the entry.
Disadvantages: very accurate and well thought entry point should be picked. Orders placed very close
to the tunnel can be triggered by sudden whipsaw early before real breakthrough occur.
Forex trading strategy #13 (Simple 1-2-3 swings)
And here we are again talking about the strategy that withstood the test of time. This Forex trading
method is based on the same study of defining support and resistance levels and trading upon the fact
of their violation.
A trading setup requires only an open chart and no restrictions for the currency or timing preferences.
Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below
(drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line
buy/sell accordingly.
Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the
distance between point 2 and point 3 and project it on the chart for exit.
Additions: as an additional tool traders can use MACD (12, 26, 9). The rules for entry then will be next
- let’s take a SELL order:
When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts
“attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down).
Once the price closes below the “pivot Line” – place Sell order.
chart: MACD (12, 26, 9) is added.
Advantages: gives 100% profitable entries.
Disadvantages: does not advise on exits.
Forex trading strategy #14 (5x5 Simple system)
Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method.
Trading strategies like this can only be discovered through a long and determined observation of the
price behavior.
To start:
Currency: ANY
Time frame: 1 day
Indicators: 5 SMA, RSI 5
Entry rules: Buy when the price crosses over 5 SMA and makes + 10 pips up, the RSI must be over
50. Sell when the price crosses below the 5 SMA and makes +10 pips down, the RSI must be less
than 50.
Exit rules: not set.
It is a very very simple system, yet with quite impressive results.
Always remember to take actions/enter the trade only after the signaling candle is closed.
This Strategy or trading idea can be used to create more advanced trading version.
Forex trading strategy #15 ("Key Simplicity")
es, one look - one hit. A trader can decide on his/her trading plans by a simple 1 second glance at the
chart. It is a very simple Forex trading system that is a pleasure to use for traders with a busy
Strategy requirements:
Time frame: 1 day
Indicators: 5 EMA, 12 EMA, RSI 21
Currency: ANY
Entry rules: Buy when 5 EMA crosses up and over 12 EMA and RSI is above 50. Sell when 5 EMA
crosses down and below 12 EMA and RSI is below 50.
Exit rules: exit when 5 and 12 EMA cross again or when RSI crosses back through 50.
Since it is a daily system the logic behind it can be described as simply following the daily trend.
Because EMAs are lagging indicators they actually help us in this case. The signalling EMAs' cross
appears after a good pause which is just enough for the new trend (if any) to be established.
Forex trading strategy #16 (Simple breakout System)
The idea behind this simple Forex trading system is to capture an early move of the price when it
starts to establish its new direction/trend for the day.
As we know the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later
the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European
session is the first major session for each coming day.
So, what do we do?
We start with 1 hour time frame, preferred pair - GBP/USD and no indicators.
The price range we are going to focus on is from 1:00 am EST to 2:00 am EST.
We look for the highest high and the lowest low of the price in that range and simply draw parallel
horizontal lines through those extremes that will create a tunnel.
Now we are ready to move to a smaller time frame - 5 minute chart - and watch for the whole 5 min
candle to close outside the tunnel which will provide a signal for us to enter with the open of the next
We use a 20 pip stop OR the other side of the tunnel - whichever is less.
We are aiming at at least 20 pips profit. After that we have several options: lock the profit in, start
"chasing" the price with a trailing stop by placing the stop just below the lowest low of the previous 5
min candle, or simply exit within the three consecutive hourly candles from the moment the trading
order was filled.
Forex trading strategy #17 (Teodosi simple system)
This Forex system was sent us by Teodosi.
We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!
Thank you, Teodosi! Your contribution is greatly appreciated!
-----------------------------------------------------------------------------------------------"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.
This is my system.
I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...
I use Stoch and RSI just to define where it is possible to have a breakout.
Then I use most profitable tool I`ve ever tried - I use candlesticks.
If I have strong up trend and my Stoch and RSI are overbought, and we have
down trend candle (black candle) close at the middle of the last
(in this case white one) I enter my trade.
With this system I make more than 1500 pip only from GBP/JPY for week. I just use it for GBP/JPY.
Rules are this:
Sell when RSI and Stoch are bought or they are close to overbought (75)
line, and we have down candle which has closed at least at the middle of the last up
Buy when we have oversold RSI and Stoch and we have up candle which has closed
at the middle of the last down one.
;) very very very simple and very profitable system
Exit rules if we are in a sell trade and ... we have oversold RSI and Stoch
and we see this up candle which has closed at 50% of the last down one - exit and
enter another trade.
Like I said this very simple and very very profitable
system. O, and I put my stop lost at -100 pip.
I`ll be glad if you post it ... and want to see what folks will say about it ... :)"
-----------------------------------------------------------------------------------------------Sure, we posted it!
Thank you and happy Forex trading!
Learn about another Simple system by Teodosi
Forex trading strategy #18 (Teodosi Moving Averages' tunnels)
This Forex system was submitted by Teodosi.
Thank you!
We value your great efforts to help us building this free Forex strategies resource
where traders all over the world can find answers about Forex and pick up ideas that
will improve their trading!
----------------------------------------------------------------------------------------------------------"Hello guys i want to help all of you and i want to share you some good system.
Like many traders say good system is simple one an that`s why i`ll tell you one very simple.
This is......
- 1H (of 30MIN, but you will get more whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21
The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine
the start of a rend and the end of a trend.
Long term
The 5 WMA & 12 WMA will show you when to enter a trend, they will also
help you to see the strength of the trends. Short term
Entry Signals
You should only open a position, when the red tunnel is extremely narrow or crossed !
LONG: 5 WMA & 12 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 12 WMA upwards, then the signal is extra strong.
RSI >50
SHORT: 5 WMA & 12 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 12 WMA downwards, then the signal is extra strong.
Exit Signals
Signals that show the end of the chosen trend
- Long: The price has reached a top and 5 WMA dives under 12 WMA
Close position
- Short: The price has reached a bottom and 5 WMA jumps above 12 WMA
Close position
Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one! This is a clear sign of a trend reversal.
After you see this, close your position and open a new position in the other way
(If you were long, close, open a short position)
When in a trade and the 5 WMA & 12 WMA cross the red tunnel ->
Pay attention! As long as the red tunnel boundaries doesn’t cross
eachother there is no problem, but often this is a sign that they will!"
----------------------------------------------------------------------------------------------------------What else can we say? Well done, Teodosi!
Thank you from all our users for sharing the system!
Learn about another Simple system by Teodosi
Forex trading strategy #19 (Egudu simple 4 tools trading)
This Forex strategy was submitted by Egudu.
ok guys, here the strategy:
any currency
enter long once the 7EMA crosses 21EMA up and the ADX has passed it's 25 or 20mark and the
MACD is trending up.the other way round is for short position. Note only enter a position once the ADX
has passed it's 25mark.
Exit: exit any position once the 7EMA crosses the 21EMA. Also, the MACD should be looked at before
entering a trade, when it's consolidating, you should stay away from the trade.
l am egudu.
Thank you from all our users and web team! Your contribution is greatly appreciated!
Forex trading strategy #20 (Trading MACD consolidation)
Current Forex strategy was submitted by Egudu - our valued contributor.
------------------------------------------------------I am egudu, and here's another strategy.
It's trading the MACD consolidation.
Time frame: 1hr
currency: any
indicator: MACD(12,26,9)
Entry: place a buy stop and a sell stop 5pips during the MACD consolidation with a stop loss of 10pips
from entry and a profit target of 30-50pips.
Please note that, the MACD must be very close, in fact it should almost become a straight line only
then should you enter the positions. l hope to give a picture shot of it soon, but u can check the chart
of GBP on the 7th, 10th, 14th of Dec 2007 on the hourly chart.
---------------------------------------------------------------Egudu, thank you once again, and we hope to hear from our users about their tests and trading
performance with this strategy.
Forex trading strategy #21 (Egudu EMA+ADX Strategy)
The following Forex strategy was submitted by Egudu - our valued contributor. Thank you once again
and let the market be always on your side!
Hi, this is Egudu, and i have this simple but efficient strategy and i hope you enjoy using it.
Currency: any
Time frame: 1hr
Indicators: 5EMA(close), 6EMA(open), [ADX(14) at 20mark]
Rule: Enter a long position when the 5EMA crosses the 6EMA up and the width difference between
them is a pip and the ADX must be over it's 20mark.
For those conservative traders, you could add 55EMA and 89EMA to know the trend and only enter a
position according to the trend,that's enter long when the 55EMA is over the 89EMA and all other
parameters are in place as i have stated above.
Additional Forex systems by Egudu can be found at:
Forex trading strategy #22 (H4 Bollinger Band Strategy)
H4 Bollinger Band Strategy
Tools : Bollinger Bands(20)
TimeFrame : H4
Currency : ALL
This strategy is extremely simple and I use it to detect opportunities and it is very good.
If you open an H4 EUR/JPY chart and you insert the Bollinger Bands(20) indicator, if you observe the
chart you will see that the bands are simply a Resistance and Support. The Upper band is a
Resistance and the Lower Band is a Support. If you pay attention to the chart you will see that most of
time the price hit the upper band then it retraces back to Lower Band, so how I trade is very easy, I
wait till the price touches let’s say the upper band and closes under it (not above it) and wait till the
candle is formed, when it finishes and the next candle opens under the previous Upper band then I
enter a Short trade with target = 100 pips or until it touches the Lower Band.
Same thing when it touches the Lower band and the candle closes above it, and the next candle
opens above the previous Lower Band then I go Long with Target = Upper band or 100 pips. You can
develop this strategy as I did, and you can profit a lot, I made more than 800 pips this month.
You can check my website for any further help . If you think in this technique and
observe the chart I am sure you will develop this strategy quickly and make 99% winning trades.
Good Luck.
Joe Chalhoub
H4 Bollinger Band Strategy (Part II)
Tools : Bollinger Band(20)
TimeFrame : H4
Currency : ANY
This strategy is a continuation of the previous strategy I submitted before (Forex trading strategy #22 ).
This strategy is very simple, and you can find more details at forex forum.
First open a currency (per example EUR/USD) and H4 timeframe, issue suitable breaklines from the
bollinger band (visual examples are at forex forum), now wait till a candle breaks the
breakLine. This break is not a trade signal we must have an extra confirmation, here come the role of
the bollinger band.
look at the bollinger band upper and lower, if they are both opened which means upper band is UP
and lower band is DOWN, then it is a confimation of a trade.
Good Luck.
Joe Chalhoub
Profile :
free forex signal :
Economic Calendar :
forex forum :
Forex trading strategy #23 (GBP/JPY Breakout Strategy)
Currency: GBP/JPY
System: Find the maximum and the minimum between 18:00GMT and 2:00GTM and put a buy
stop order +5 pips +spread with maximum and a sell stop order -5pips – spread with the
Profit target 100 pips
Stop loss 50 pips
If close in Loss open again the stop orders. Do not trade for the day if closed in Loss for the second
time. Do not initiate new trades if closed in Profit.
Do not change the Stop and the Profit targets.
Close orders manually only at the end of the day (18:00 GTM).
James Ayetemimowa
[email protected]
Credits to James Ayetemimowa - our valued contributor!
when it is 1 hour to london open, draw lines on the highest high since midnite and lowest low since
midnite, just trade the breakout and let ur stop loss be at the high of the candle that broke the low line
for short trade and the low of the candle that broke the upper line for long trade
if u experience a breakout before New York Open, please target the first 30pips
if beyond New York Open before a break please target between 10 to 20 pips
Forex trading strategy #25 (H4 Bollinger Band Breakouts) more to come...
H4 Bollinger Band Breakouts
Open the 4 hour chart and choose whatever currency you want.
Insert the Bollinger Band (20) indicator and be sure that its center line is appearing.
Identify 2 valid lower points OR 2 valid higher points in the Bollinger Band and drop a line from the first
to the second line; it will be our break line.
Now when a candle closes above the break line issued from the higher points and in case the center
line of the Bollinger band in the 1 hour chart crosses the break line then we have a LONG Trade.
If the candle in the 4 hours chart closes under the break line issued from the 2 lows points and in
same time the center line of the Bollinger band crosses the break line in the 1 hour chart, then we are
in a SHORT trade.
Complex trading system #1 ("Multi-conditional")
Currency: ANY
Time frame: 1 hour + 30 min + 5 min.
Indicators: 14 EMA, 21 EMA, 50 EMA, Bollinger Band (20, 2).
Entry rules: Enter on 5 minutes chart.
On 5 minutes chart, for uptrend:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
go and check 30 min chart:
if price bar is a up-close bar and sitting on 14 EMA or 21 EMA
and same again:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
go Long...
OR go and check if 1 hour chart meet same conditions as for 30 min chart and then go Long.
If at least one condition is violated – stay away.
The reverse is for the downtrend:
Enter on 5 minutes chart.
On 5 minutes chart, for downtrend:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
go and check 30 min chart:
if price bar is a down-close bar and touching 14 EMA or 21 EMA
and same again:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
go Short... or go and check same rules for 1 hour chart and only then enter Short on 5 minutes chart.
Exit rules: exit when any of the conditions is violated or when the profit is high enough to close the
Complex trading system #2 (“2-Cross”)
Currency: GBP/USD (preferred) or any other.
Time frame: 3 hours (preferred) or 4 hours.
SMA 200, SMA 100 – these are two influential SMAs; you will find price “obeying” their boundaries.
SMA 15
MACD (12, 26, 9)
Trading Rules:
Since we are dealing with “unpredictable until set” indicators (EMA, SMA, MACD) we will always be
using signals AFTER the current signaling candle is closed.
1. Never open a trade if price is less than 25 pips away from 100 SMA or 200 SMA.
2. Do enter the market when price has crossed either 100 SMA (expect large move) or 200 SMA
(expect very large move) and only after the current candle has closed on the opposite side of the
SMA. SMAs this big do not get crossed very often.
3. Set stop loss initially at 50 pips. Look for nearest support/resistance level and adjust it accordingly –
it could grow up to 70-90 pips but it should not be less than 40 pips. Anyway this measure is taken
only to save us from sudden “exploding market”, in all other cases it will not be hit as our system will
take you earlier from the trade.
4. Enter in the direction of 5 EMA once two conditions are met:
1) 5 EMA crosses 15 SMA “permanently” – which means the current candle is closed and lines are
“locked” and will not move misleading us.
2) MACD lines are crossed, and the current candle is closed.
The 2 crosses do not have to happen simultaneously. MACD lines can cross earlier than EMA and
SMA or shortly after, but there should be no more than 5 candles in between 2 crosses.
If “2-cross” condition is not met – no entry.
Exit rules: exit with the same rules as for entry: when two crosses are in place. If we have only one
cross – we are still in trade.
Profit target:
a) can be set to a desired amount of pips and followed with trailing stop further once the target is
b) or use 50 pips profit target – do start chasing the price with trailing stop after gaining 50 pips.
c) or you may not use trailing stop and set no profit targets, then exit according to Exit rules – on the
next “2-cross”.
Let’s walk through the numbers:
#1 – EMA 5 crosses 15 SMA, MACD lines also crossed, price is not close to SMA 100 – we place
Long order.
#2 – again we have 2 crosses: moving averages cross and MACD – we exit Long and immediately
place Short order.
# 3 – 2 crosses are in place, by the time our current signaling candle is closed we are already far
enough from 100 SMA, so we close Short and open Long position.
Yes, till this point we were trading in sideways moving market – so no profits here, may be some small
negative results. Solution – trading only during active hours, for GBP/USD it is London and New York
#4 – As we were Long – this point is our exit (“2-cross” condition is met again)
and immediately place Sell order.
#5 – moving averages on the chart have crossed, however MACD – does not, we stay in trade.
We watch price passing 100 SMA and closing below it – it is a good sell signal, but we are already
trading it.
#6 – first appears MACD crossover, followed by moving averages crossover – at this point we close
our Short position. Do we open Long position immediately? No, because we are very close to 100
SMA. We need to wait until candle passes and closes above 100 SMA to open a Long trade. Once it
happens we are in trading Long.
#7 – MACD lines has attempted to cross, but nothing to worry as there is no second cross from
moving averages.
#8 – same as #7.
#9 – time to finally close Long position and go Short.
Complex trading system #3 (Divergence)
Currency: EUR/USD (preferred) or any other.
Time frame: 30 min.
Indicators: MACD (5, 26, 1) – draw 0 line,
Full Stochastic (14, 3, 3)
SMA 13
Trading rules: watch for divergence between the price on the chart and MACD or between price on the
chart and Stochastic.
Once divergence spotted, wait for EMA 3 and SMA 13 to cross and enter the trade in the direction of
EMA 3.
Set stop loss at 26 pips.
Take half of the profit at 20 pips; let the rest to run further with trailing stop in place.
Divergence on Stochastic can be found the same way as on MACD. The reason for using both MACD
and Stochastic is that one of the indicators can show divergence while the other will not at given
period of time.
Complex trading system #4 (Trend trading with EMAs)
rading strategy setup:
Time frame: 1 day, 1 hour or 30 min.
Currency pair: any.
80 EMA
21 EMA
13 EMA
RSI (21)
Trading rules:
80 EMA suggests a major trend direction.
When the price is traded above 80 EMA – uptrend, opposite for downtrend.
21 EMA and 13 EMA give a current trend direction.
While 13 EMA stays above 21 EMA – uptrend, opposite for downtrend.
RSI (21) above 50 mark suggests an uptrend, below – downtrend.
Entries are made on a cross of 3 and 5 EMA in the direction of a trend:
Buy when 3 EMA crosses 5 EMA upward in an uptrend market AND both 3 and 5 EMA cross a
channel of 13 and 21 EMA AND RSI is above 50.
Entry with Sell order when 3 EMA crosses 5 EMA downward in a downtrend market AND both 3 and 5
EMA cross the 13 and 21 EMA AND RSI is below 50.
Note that additional entries are possible when 3 and 5 EMA cross back and then shortly after make a
signalling cross again.
Note, that when we get the signal to enter we always wait for the current price bar to close and only
then (if conditions nave not changed) - open a position.
Exit rules: when 13 EMA crosses 21 EMA back.
Keep an eye on 80 EMA, also watch RSI 21 to cross 50 point mark again - both will suggest
immediate exits.
P.S. For more conservative trading take positions that do not contradict with 80 EMA's trend
Complex trading system #5 (Fibonacci trading)
We were asked to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.
When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be
wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries
with high chances to win and what's more important it should be able to tell exactly where to exit
without need to constantly monitor the price.
Note also, the more traders look at charts, the more they tend to have controversial feelings about the
success of a current open trade...
With all this long introduction, it is only left to mention that this strategy will require from traders basic
knowledge of use of Fibonacci tool.
What is Fibonacci tool and how to use it? Simply Google "forex fibonacci" phrase and you'll find a lot of
information about it.
...This is probably the only reason we classified this trading system as Complex one, not every trader
is comfortable with using Fibonacci studies in Forex.
Trading setup:
Time frame: any over 5 min and less than 3 hour.
Currency pairs: any.
Indicators: 5 WMA
Look at the price waves. Find the most recent swing high and the most recent swing low = so called
Fibonacci A swing and B swing.
Pull Fibonacci from A to B.
To know which direction to pull (up or down) simply look at the trend; if it is unclear, find appropriate
AB swings and set Fibonacci in both directions.
Once set, wait and watch the retracement from AB swing to unfold.
During the retracement there are three conditions to be met in order to consider trading:
1. The price must touch 5 WMA.
2. The price must at least touch 0.382 Fibonacci retracement level.
3. The 0.618 Fibonacci retracement level must not fail. Here it means the price should not close below
(uptrend) / above (downtrend) 0.618 retracement line. It can touch or poke it, but the level must
withstand the "attack".
When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry,
below - for Short.
Stop order is placed always 4-5 pips above (downtrend) / below (uptrend) the 0.618 Fibonacci
retracement level.
Profit target is set to 1.618 Fibonacci expansion level derived from point A.
Complex trading system #6 (Munzer Forex System)
Munzer - South Lebanon submitted own Forex system:
I am using this strategy and it works well with me
I like to share it with others
This website is the best I have got use off
Mine is on 1 hour chart:
Two EMA of settings 5 and 15 - close
Two EMA of settings 144 and 169 - close- vegas 1 hour tunnel
asctrend2 for determining stop
MACD settings 12,26,9
RSI settings 21
Trend trigger mod
Entry long:
EMA 5 and 15 crossover upward
crossover of MACD lines upward
RSI(21) > 50
and TrendTriggerMod upward
Short entry:
EMA 5 and 15 crossover downward
crossover of MACD lines downward
RSI(21) < 50
and TrendTriggerMod downward
Hint1: do not make the trade if trendtriggermod do not agree the others
Hint2: beware of the 2 EMA's 144 and 169 They work well as Support and
Exit: Use new crossover of MACD lines
Stop loss depends on asctrend2 or use ATR(14)*2"
Munzer, our greatest appreciations for contributing this Forex system!
Thank you! Well done!
(Forex Strategies Team
Find another Forex system by Mohammed Munzer at
Complex trading system #7 (Mohammed Munzer Forex system) more to
Current Forex system was submitted by Mohammed Munzer - our valued contributor.
hello all
timeframe: daily
Double CCI (CCI=50 and CCI=14)
Full stochastics (5,3,3)
- When price is between EMA(34) and SMA(150) Do not trade
- Trade long when EMA(34) is over SMA(150) and a daily candle crosses
EMA(34) and closes over it by putting an entry order 10 pips above the
candle's high taking into consideration that stochastics lines are up and
not in the overbought zone
- trade short when EMA(34) is below SMA(150) and a daily candle crosses
EMA(34) and closes below it by putting entry order 10 pips below the
candle's low taking into consideration that stochastics lines are down and
not in oversold zone
- Exit depends on stochastics lines crosses
Stop loss= 75% Daily ATR
- You can repeat entrys after retracements towards EMA(34) or towards "NO
TRADE ZONE" depending on double CCI patterns trend continuation and trend
line break only if stochastics and entry conditions returns valid -closing
above EMA(34) for long or below it for short and with entry orders 10 pips
above for long and below for short.
Thank you once again!
Forex Strategies Team
You can find another Forex system
by Mohammed Munzer at
Advanced system #1 (Midnight setup)
Ready to dedicate your midnight hour to Forex trading? This strategy can be your winner.
Trading strategy setup:
Currency pair: GBP/USD or any other.
Time frame: 1 day. No indicators.
Trading Rules:
This system is based on the fact that most of the time you will not find same size candles for 2
consecutive days on a daily chart. What does this mean for us – only one thing: the price is moving
steady either up or down with no price “noise” which is always present on smaller time frames.
At 00:00 (your local time) or rather: according to the time set on your trading platform, with newly
formed daily candle find highest and lowest price of the day for the previous daily bar.
If the price bar (including shadows) is less than 90 pips long we will not open new trades on
the next day. (This is our requirement for GBP/USD pair, it can be changed/adjusted for other
currency pairs).
If trading can be done, set Buy stop order at the top of the highest price +5 pips and Sell stop order at
the bottom -5 pips.
Put your stop loss order for a Long entry at the lowest price for the day -3 pips.
Put your stop for Short order at the top of the highest price for the day +3 pips.
These additional pips for entries and stops can also be adjusted once a behavior of chosen currency
pair is learned over the time.
Now, when one of the orders is filled – stay in the trade for the whole day. At midnight with the new
daily bar open, adjust your orders and stops according with the previous daily bar following the same
routine; keep trading position open until get +100 pips, then you may close current position to reward
yourself. Rewarding is a very powerful tool, use it.
Also close you current position (with either profit or loss) if a daily candle becomes a Doji candle or is
almost a Doji. What we mean by “almost” is that for the true Doji you need open price = close price,
while “almost Doji” can have some distance between open and close (but no more than 10 pips).
For example: on May 1st at 00:05 am, we opened a daily chart and it was a downtrend. We set our
orders: both Buy and Sell according to the previous candle (April 30th). The same day our Sell order
gets filled. The day has passed and the price made some further progress down. At 00:05 am May
2nd with a new daily candle appearing we change our stop loss for our current Short position
according to the high of the previous bar (from May 1st) and we either continue to stay in the trade or
lock in profits. Also we reset our Buy order which is now going to be just above the highest high of the
May 2nd price bar.
This system also gives an opportunity to be constantly in trade and at the same time it requires very
little observation and takes only 5 minutes to set all positions and forget about Forex till the next
midnight. You will see losing trades with this system from time to time – it is a part of any trading, but
the overall result will be very positive.
Let’s look at the same chart in more details.
Next is a detailed candle-by-candle explanation of the trading on the chart above.
We will number candles starting form 1 – so number 1 is a circled candle.
1 st candle (high – low = over 90 pips) - allows entries next day. We set orders.
2st candle – the price didn't get above or below the 1st candle, no orders filled. Midnight: 2nd candle is
over 90 pips long, so we reset orders according to 2nd candle’s high and low.
3nd – buy order filled. Midnight: day ended negatively, but didn't trigger the stop loss, we keep our
position open and adjust stop loss below the low of the 3rd candle and minus additional 3 pips. The
3rd candle is also less that 90 pips long and we wouldn’t trade the next day except that for now we
have already one position running.
4rd – went in profit and we rewarded ourselves closing position at the end of the day with just over 100
pips (you can actually set your target lower than that, and use 100 pips as a suggestion).
Choosing a profit target for the day becomes easier when you know a daily range average for a
particular currency pair.
For example,
GBP/USD daily range average is 180-200 pips
EUR/USD daily range average is 110-120 pips
USD/JPY daily range average is 80-90 pips
USD/CHF daily range average is 120-130 pips
Taking about a half of it can determine your profit targets.
5th – no trading as the price didn’t exceed previous candle boundaries. Midnight: candle #5 is less
than 90 pips, thus we are not setting any orders for the next day.
6th – we didn’t trade it and for a good reason – price managed to get below and above the previous
candle’s high and low, which could mean for us hitting our stops, in worst case - twice.
7th - we had our stop loss below the low of candle 6, this trade is a reward again – more than 150
pips, so we lock it... and for a good reason...
We will have systems that will be able to easily allow trades running their positions further
relatively safe, but for this one it is important to lock your profits – the reason is that we move
our stop order every day.
8th – no trading opportunities. Midnight: candle 8th is less than 90 pips means we are not going to
trade next day.
9th - no trading and we were very right about it. Midnight: 9th candle is long enough for us to set
targets for the next day.
10th – no orders triggered. Midnight: 10th candle is long enough again which allows us to reset our
11th – we sold, the day ended in profit, but the profit was relatively small, so we are going to stay in
12th – brought us 100 pips at the end of the day and we go out taking profits. Also we reset orders for
13th – Long order was triggered and price made some progress during the day, but closed almost at
the same level. We stay in and adjust our stops.
14th - our stop loss is hit and moments later buy order is filled. The price closed below our order, we
stay in trade.
15th – we are almost at breakeven, but nothing to earn, we stay in trade.
16th – brings us loss again as our stop loss is hit; a short position is filled soon after and so on...
Advanced system #1-a (Midnight setup addition: Trading Breakouts of the
Current trading method was developed as an addition to original Midnight Setup strategy, but can also
be traded alone or in combination with any other Forex strategy.
The idea is to filter out some big portion of false breakouts in our case above/below daily candles.
Setup: daily charts and 5 min charts, no indicators.
Entry rules:
Using rules from Midnight Setup strategy we get ready to enter on the break of the daily candle's high
or low.
However, this time instead of placing Buy/Sell stop orders above/below daily candle, we aren't placing
any, but rather waiting for actual breakout to occur. Would be a good idea to set an alert signal on a
trading platform that will call us when the first breakout is in place.
Immediately after a breakout above/below daily candle on daily charts we go to 5 min charts, where
we wait for the price to finish its first advance and start retracing back.
Here comes the idea of Trading Breakouts of the Breakouts:
On 5 min chart we mark the very first extreme level set by the price (highest high or lowest low
depending on the breakout direction) and place Buy Stop or Sell Stop orders +10 pips above/below
that extreme. This way our order will be triggered only if the price confirms its directional intentions...
Otherwise, it was a false breakout.
Quite often after the breakout on Daily charts, 5 min charts first extreme point reveals the real nature
of the breakout. Price may never reach that extreme again, or it can come and make double
top/bottom pattern and back up. Not all but many losing trades can be avoided by Trading Breakouts
of the Breakouts.
Along with advantages, there are some not very critical disadvantages of this method:
First of all, we are going to enter a bit later after the initial daily breakout and thus will definitely miss
some pips from the starting breakout point.
Second, if the breakout is extremely powerful, our 5 min retracement may never come or come way
too late. Chances for that are quite small, usually there is always something to spot on 5 min charts,
but exceptions may occur.
Third, you can't set it once in the morning and forget about it for the rest of the day. You need to be
there to spot the first 5 min retracement and set appropriate orders.
Advanced system #2 (Fibonacci trading)
The fact that Fibonacci numbers have found their way to Forex trading is hard to deny.
Moreover, trading currencies with Fibonacci tool for many traders have become the bread and butter
of their whole trading career.
So, shall we look at the one of such good Forex trading systems today?
Trading setup and tools we need:
Time frame: 3 hour (or 4 hour).
Currency pairs: any.
Fibonacci tool - our main tool
EMA 100 – green (visual guidance)
SMA 150 – red (visual guidance)
RSI (14) on a daily chart
We will be working with next Fibonacci retracement levels: 0.382, 0.618, 0.250 and 0.750.
Default stop loss – roughly 100 pips and then adjusted according to the most recent swing high/low.
Profit target – no target is set as we will let the profits run.
Trading Rules:
Find the closest to the current price wave with a distance from High to Low over 100 pips.
Apply Fibonacci on it no matter if the wave is going up or down, only size matters.
Some terms we are going to use here:
The corridor between 0.382 Fibonacci retracement level and 0.618 retracement on the chart – will be
called a “must channel”.
Fibonacci retracement levels will be numbered always from bottom to top, no matter whether it is an
up or a down wave. E.g. at the bottom we will always have 0.250, then next 0.382, 0.618 and finally on
top – 0.750 Fibonacci retracement level.
Entry rules:
Always enter only according with both:
1. EMA and SMA trend suggestion (e.g. green on top – uptrend, red on top - downtrend)
2. RSI suggestion (e.g. reading below 50 – only sell orders, above – only buy orders).
Now, after applying Fibonacci on a wave bigger than 100 pips we wait for the price to go inside a
“must channel” area (at least to make 1 pip into the channel). Only then next rules will be valid:
- If a full candle (including shadows) is closed below 0.250 Fibonacci retracement, we go short. If we
are currently long – it is time to close long position – it is an exit rule as well.
- If a full candle (including shadows) is closed above 0.750 Fibonacci retracement, we go long. If till
this time we had short positions open – we close them – and again it is an exit rule as well.
Important: once another wave greater than 100 pips occur, set a new Fibonacci on the new wave.
Retracement levels will change and so we will now follow new retracements.
(Optional: for visual aid traders may mark old Fibonacci wave to see the general pattern of
consecutive waves on the chart).
That’s it. Stay in trade, resetting Fibonacci with each new wave and moving a stop loss according to
the last swings high or low (in simple words, a stop loss will be always just below the Fibonacci 0%
line) until it is time to close the position according to our rules.
This strategy prevents a lot of “bad” entries, eliminates early exits and allows staying in trade for a long
period of time helping to take everything a current move can offer.
Traders may close all good winning positions on Friday evening if they prefer not to hold them over a
Advanced system #3 (Neat entry: RSI + Full Stochastic)
Current strategy has won the hearts of many Forex traders. And why not when it has a great winning
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
Entry for uptrend: when the price is above 150 SMA look for RSI to plunge below 20. Then look at
Stochastic - once the Stochastic lines crossover occur and it is (must be) below 30 - enter Long with a
new price bar.
If at least one of the conditions is not met - stay out.
Opposite for downtrend: when the price is below 150 SMA wait for the RSI to go above 80. Then if
shortly after you see a Stochastic lines crossover above 70 - enter Short.
Protective stop is placed at the moment of entry and is adjusted to the most recent swing high/low.
Profits are going to be taken next way:
Option 1 - using Stochastic - with the first Stochastic lines cross above 70 (for uptrend) / below 30 (for
Option 2 - using a trailing stop - for an uptrend a trailing stop is activated for the first time when
Stochastic reaches 70. A trailing stop is placed below the previous bar's lowest price and is moved
with each new price bar.
This strategy allows to accurately pin-point good entries with sound money management risks/protective stops are very tight and potential profits are high.
Current trading strategy can be improved when it comes to defining the best exits. For example, once
in trade traders may also try applying Fibonacci studying to the most recent swings. This way they can
predict short-term retracements and make sure they will not be pulled out of the trade early and will
continue pursuing profit targets at Fibonacci extension levels.
Advanced system #4 (Early bird Breakout System)
Another advanced morning strategy tightened to the timing factor and only two currency pairs.
Trading setup:
Time frame: 1 hour.
Currency pair: preferred but not limited to EUR/USD and GBP/USD.
This Forex breakout system uses no indicators.
Trading rules:
The system is called "early bird" because it requires a trader being ready to trade Forex as early as
5:00 am EST.
Find the Highest High and the Lowest Low for the candles from 00:00 EST to 4:59 am EST. (We
should have 5 candles for each hour: 0, 1, 2, 3 and 4).
At 5:00 am EST set 2 entry orders: buy order - above the highest high +5 pips, sell order - below the
lowest low and -5 pips.
Set initial profit target to +90 pips for EUR/USD and +140 pips for GBP/USD - both targets are way too
high if to consider that daily range average for EUR/USD is only 110-120 pips and daily range average
for GBP/USD is 180-200 pips.
If those targets get hit - very good! However, our profits will be determined mainly by the time factor
instead of a fixed amount of pips.
So, we close all open positions at 12:59 EST (1:00 pm EST) and cancel all remaining orders. The next
trading opportunity - only next day at 5:00 am EST.
Setting Stop Loss orders:
Stop loss for Buy order should be placed below the found earlier lowest low -3 pips, for Sell order above the highest high +3 pips. If a stop loss is hit most likely traders will see an opposite position
open. Stop loss should never be moved.
Advanced system #5 (Trend Lines Breakout System)
Breakout systems like this are always in great demand. It is quick, easy and with a proper use has a
true winning rate of over 90%.
Currency pair: GBP/USD, EUR/USD - tested. Other pairs may also be used.
Time frame: 1 hour.
Indicators: none.
Trading setup:
For this Forex system to work properly a trader needs to know the basics of identifying swings high
and low, rules of drawing trend lines, plus be able to use Pivot Points.
These are very simple things we believe every trader should know.
Our working range includes 5 candles: from midnight to 4:00 am EST (including the 4:00 am
Optional: draw a midnight vertical line for visual aid.
Within those 5 candles look for a valid swing high and a swing low of the price.
Draw an Downtrend trendline connecting a found swing High to the most recent swing High of the
previous days. (Make sure the last one is valid High to draw an Downtrend trendline through it).
Do the same for the swing Low: connect it to the most recent swing low of the previous days, make
sure you are pulling the right trend line using the rules of drawing Uptrend trendlines this time.
If a trader sees, for example, no Swings High in the 5-candle range, that means there will be no
downtrend trendlines this morning.
The Entry is on the break of either one of the trendlines and is immediate without waiting for a current
candle to close. A protective stop is placed just above/bellow the candle that broke through the trend
Profit target:
Usually the whole action is unfolded within the next three candles (count in the candle that had
violated the trendline but only if it closed on the other side of the trendline).
So, after the actual breakout we have 3 hours or 3 candles to trade, after that we will exit with
whatever profits are made.
Main rule: Using Pivot points + timing
Profit target is going to be the nearest level of support or resistance according to Pivot point levels.
If, however, after only one candle this target is reached, it suggests a very strong market, thus we
would stay in trade and set the goal for the next support/resistance level. We would also choose the
second Pivot point level of support/resistance as our profit goal if the first Pivot level appears to be too
close to our entry point.
We have three candles to trade after the breakout, that's why we can trade calm and allow our goal to
shift to the next Pivot Point level.
It is an absolute traders' discretion of whether to set the target at the nearest Pivot point
support/resistance level and leave the trade once the target is hit or using a timing factor exit after the
two / maximum three consecutive candles.
Tip: running two orders can save lots of nerves. First target - the nearest Pivot point support/resistance
level. Second - on the close of the third candle.
Another simplified option would be with fixed targets and timing
For example, EUR/USD target = 20 pips - spread, GBP/USD = 40 pips minus spread. These are only
suggestions, and for other currency pairs = testing will tell...
Hold position open for the next three candles.
If the target is not reached within those three candle, close all trading positions anyway.
That's it. Simple and very effective.
Advanced system #6 (Picking Tops and Bottoms)
Were you told not to hunt for tops and bottoms when trading..?
Why not break the rules when you can tell with an astonishing precision where the next top or bottom
will be?
Here is one very nice and accurate trading system that could make your Forex trading entirely about
hitting the right spots.
Trading setup:
Time frames: 5, 15, 30 minutes, 1 hour, 3 hour and 1 day – just one chart at the time will be used.
In case you do not have the exact time frames, simply substitute them with the closest ones. For
example, 15 min can be changed to 10 min, 3 hour can be changed to 4 hour etc.
20 EMA and 40 EMA on all time frames
ADX 14 for all time frames.
Currency pairs: any.
The idea behind this Forex method is that ADX helps to measure the strength of the trend while 20
EMA acts as a flexible support-resistance line.
Trading rules:
Our first goal is to find the chart with ADX being over 30 mark, which will indicate a strong trend. We
start with a daily chart and continue the search moving downwards (3 hour, 1 hour, 30 min, 15 min, 5
min) until we find the chart with ADX being currently over 30.
Note: In case several time frames meet requirements for ADX, we opt for the highest time frame.
That's why we start with the highest frame first.
Having chosen the time frame, we are ready to trade the first bounce off of the 20 EMA. We set a limit
order close to 20 EMA accordingly: in a downtrend we expect the price to touch 20 EMA from below,
then reverse and move down, in an uptrend – from above, reverse and move up.
Always make sure that at the moment of entry you are using the highest time frame with ADX currently
over 30. Only then you can expect the price to obey 20 EMA.
That's it.
Initial Stop loss order is placed above (when short) / below (long) the 40 EMA.
Important note: once in the trade stay with the time frame used for entry.
Risks: looking at the charts traders will find that at times the price reverses exactly at 20 EMA, but
sometimes it moves even further before making a u-turn. Always be ready to leave some room for the
price to make this turn, that's why we suggest using 40 EMA for stops.
Exit rules:
Option 1: Use Bollinger Band with settings (18, 2) for all time frames. Set a profit target at the outside
band. Move your profit target as the Band expands or narrows.
Option 2: For traders familiar with Fibonacci tool, profit target can be set to 1.618 expansion level. AB
Swing for Fibonacci should be found from the earlier price moves and the actual point of entry should
be considered as point C or a retracement.
Option 3: Once the price clearly moves in your favor move the stop below/above (Long/Short trading)
the previous price bar. Adjust the stop with each new price bar. Trade until stopped.
Also exit always if ADX goes below 30 on the time frame which was used for entry.
That’s it. Test it and see that it works remarkably well.
P.S. Accuracy of this strategy is quite difficult to backtest/visualize using historical data. If you decide
to do so, make sure you do it right and know what time frame should have been chosen for trading at
any given time. The easiest way to analyze current strategy performance is by running it in real time.
Advanced system #7 (EUR/USD breakout system)
We've created a new page for discussions of the new Forex System that was kindly posted by our
Visitor. Thank you for taking time and efforts to share this Forex system with us!
----------------------------------------------------------------------------------------------------------What is ur comment on this similar system
time frame 1 hour
ema(144) and ema(169) and sma(400)
System uses highest high and lowest low of candles from 1.00 GMT to 6.00 GMT
conditions needed to make trade:
1- Entry price must be away from Vegas tunnel and/or SMA(400) at least 35 points (rebound zones)
2- Orders are set after the close of candle 6.00 GMT
Put buy stop order at the highest high + 5 pips
Put sell stop order at the lowest low - 5 pips
Stop loss orders are put at lowest low - 3 pips and at highest high + 3 pips consecutively
Limit orders = stop loss count value + 15
Pair Eur/USD
chance 1
no short orders because price is near vegas tunnel
Long order was not taken on 1.4267+5=1.4272 because it is not hit
Chance 2
No short orders again for same reason
Long order was taken on 1.4276+5=1.4281
stopp loss =1.4247-3=1.4244
limit=(1.4281-1.4244)+15=52 pips
limit is at 1.4281+52=1.4333
Chance 3
Short order was not taken as 1.4315-5=1.4310 was not hit
Long order is taken as 1.4338+5=1.4343 was hit
entry: 1.4343
stop loss at 1.4315-3=1.4312
limit= (1.4343-1.4312)+15=46
limit is at : 1.4343+46=1.4389
Advanced system #8 (4 CANDLES STRATEGY) more to come...
The following strategy was submitted by James Ayetemimowa.
Thank you, James, for your great contribution!
- Draw horizontal lines on the highiest high and the lowest low of the first Four candles of the day.
- Trade the Valid Breakout of the eigther lines.
- Check Stochastic Slow on 4hours Time frame.
- Trade the direction of the 4hours stoch with higher quantity
- Trade direction against 4hours Stoch with lesser Quantity
- Target the first 50-100pips
- Your stop loss should be the other side of the tunnel
- If your stop loss is hit, set the pending order again.
- Close all pending orders by 5 hours to close of the day.
- Plot the Pivot first
- Check the relationship between the pivot and the opening price
- Place Stop Buy 200pips above previous day close and Stop Sell 200pips below Previous day close
- Plot the -+200 above and target the next 200pips or next pivot, whichever is lesser
- A day where the opening price is at the middle of a pivot and a middle pivot, please don’t trade the +200 consider NO TRADE or wait for price to hit middle of pivot or pivot then apply -+200 from that
- Note and Note, any of such potential trade after you must have made your 200pips, you must always
lock profit to 100pips b4 you can let it run.