Day trading the advanced currency markets( Forex) can be an exhilarating experience. Some like to make it complicated, however I have found that keeping it simple is something I like to revert back to when I feel that I am losing that “zone” edge.
So I’m going to reveal a system that is always proven to work, it may not be extremely lucrative but it’s consistent. And for those who have the bankroll to execute on a larger scale will produce larger results.
there many Forex strategies, many methods are quite ingenious and have developed unique combinations that produce various results.
This is a simple method using moving averages, however don’t be fooled simple is good.
Below is a method that can yield 30 to 50 pips today, and any experience Forex trader knows that this is pretty darn good.
Feel free to make it as complicated as you like, but I keep it simple because I like it that way.
I trade the EUR/USD and the GBP/USD. I personally found for me it works best with these two currencies although you may have a different preference. You can use a different currency, one with higher volatility would be better for this system.
I use 2 Indicators-weighted MA and the simple MA.
On my 1 hour chart I use a weighted moving average WMA 20 and a moving average MA 30.
For the sell signal.
Once the open price moves below the WMA 20 and MA 30, the trade is confirmed when the price moves below the pivot point. This is a high probability trade, it may not come along too often, but is a surefire move and a technique that is easy to get comparable with. You will get a feel and develop a strategy around this method.
Back Test. It’s important to develop a sense and feel for when this produces signals. You don’t want to be trading off false signals. Back test and this will reveal the methods pattern of success.
The Buy Signal. when price opens and closes above the weighted moving average (20) and also closes above the moving average (30) and more specifically price is above the pivot point as well, only then is the trade confirmed.
Simple is that.. simplicity is power.
As long as you are patient and wait for the trade to come to you as it confirms the above parameters,you will have trades that when more often than not. And those winning trades will be more profitable, then you’re losing trades are losers. That’s the key.
So for those of you seeking a free Forex signal method, this one is not only free but simple. Easy to execute easy to understand easy to win.
I typically trade this system with a 50 pip stop loss and with a trade target of 100 pips. There are times that I will tighten it up but not.
When the target is hit I close one lot and trail the remaining lot with a 20-10 point stop loss, or closer depending.
If you are patient you will have winning trades 70-80% of the time.
Keep it simple and you will do just fine.
To learn about more forex trading strategy check out ACM Forex methods.
