Technical analysis

Short-term Forex strategy. The basics

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Short-term Forex strategy Genesis Matrix

  • Basic data
  • Rules for opening positions
  • Video
  • Downloadable template

Greetings, friends! Short-term Forex trading strategies at the moment are the most common among many traders. In principle, this fact is very easy to explain, let’s start with the fact that systems of this kind allow you to earn good profit in a very short period of time. One of these strategies we will look at today is Genesis Matrix.

If You have some time to work on the market, you probably heard about this system! As with any short-term Forex trading strategies, it involves the use of a small time interval.

At the time, Genesis Matrix made a lot of noise and became the main system for many traders. If you delve into the history of the Genesis Matrix, its progenitor was another equally well-known strategy called Symphonie System. However Symphonie System has one significant drawback which has caused great difficulties to beginners is a repaint indicators.

As a result, the potential signal, which gave the system could disappear after a strong market movement in the opposite direction of the signal. Thus, it gave good results on history, but in real time it was not so welcome.

The truth is, many short term Forex strategy can be drawn, but the creators of the Genesis Matrix managed to get rid of this shortcoming and the lack of redraw is a major advantage of this system.

Short-term Forex strategy. General information

Given the fact that we are dealing with a short-term system, we will use the interval M5-M15. With regard to suitable underlying assets, the system copes equally well with both major and cross pairs.

As for the exotic pairs, I personally do not recommend their use because the results can be very unstable. Note that the system includes a large number of indicators, however, to interpret their readings is very simple.

List of indicators:

  • FXI PIVOTS. This kind of levels of support and resistance that are drawn automatically which is very convenient Supplement for those who have difficulty in proper levels, this indicator will be very opportunely. In the context of the strategy, levels to a greater extent are used to lock in profits.
  • ASCTREND1I. Appears in the form of arrows, the yellow arrow indicates the possible purchases, and the red on sales.
  • HEIKEN ASHI. These candles help to visually smooth out the market picture. The appearance of white candles is a direct indication of the rising trend development. In turn, the appearance of red candles tells us about the formation of the downward trend.
  • Stochastic Ordinary and Stochastic M stochastic helps us to identify the market conditions the manifestation of oversold or overbought. Additionally installed stochastics from a higher time frame so we could further assess the situation in the longer term.
  • Genesis1. Is the main representative of this system, and consists of four indicators and technical analysis. Is displayed as a histogram, where the white cubes is a sign of the emergence of a rising trend, but the red cubes will signal about possible sales.

Short-term Forex strategy. Open position

To open a purchase you must wait for the following conditions:

  • Should form the yellow arrow.
  • Candle needs to close above the MA indicator
  • Stochastic must point to oversold conditions in the market.
  • Green M15 Stochastic line must be above red line.
  • All the blocks of the histogram needs to be white.
  • Price should not depend on the level of FXI PIVOTS.

For the opening sale you must wait for the following conditions:

  • Should form a red arrow.
  • Candle closes below the indicator MA5.
  • Stochastic must point to overbought conditions in the market.
  • Green line, the M15 Stochastic must be below the red line.
  • All the blocks of the histogram should be red.
  • Price should not depend on the level of FXI PIVOTS.

If to speak about placing stop loss and take profit the take profit I recommend to install at the next levels of FXI Pivots, in relation to the losses, they can be best for immediate market extremes.

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