Forex Strategies

Simple Forex strategy

Simple
Written by forex

Greetings to all fans of trading and blog readers! Today the topic of our article will be unbelievable simple Forex strategy. The paradox is that its simplicity does not aggravates the performance, no wonder they say that everything is perfect is simple.

Honestly, when I decided to observe this system, I was feeling somewhat skeptical. The point is that it uses only two standard OSMA indicator and MOVING AVERAGE.

It would seem like the combination of these two simple indicators can take stable profit. I was really surprised, but seeing the results of this strategy on historical data, it became clear that the intelligent and rational approach, it will allow quite a good money.

The system was borrowed from a very famous foreign forum. There she received a number of positive reviews, so I decided to introduce You to her friends.

The author positions his simple trading strategy Forex trend, and in General, it is impossible not to agree. Having seen some time behind the system, it became clear that it works perfectly on trend, but consolidation can be a big problem.

On the other hand, a special problem in this, you need to understand that losses can not be avoided. In General, consolidation can be obtained from several consecutive small losses.

But once captured a strong trend, in one transaction, you can recoup all the initial losses, and even eventually go into profit. The author recommends the use of the system on the M5, but I personally can argue with that.I watched that on M15 this simple Forex strategy works a lot better. Of course it’s something categorically recommended. This is because every trader has their own preferences that is perfect to one, may not work for another.

So, the system uses only two indicators Moving Average exponential type with a period of 21 and with a shift of 3. All this we applied to closing prices. Additionally used OSMA with default settings.

In the context of this system MOVING AVERAGE indicates a change in the current trend, and the OSMA confirms his power. Thus, the relative indications of these indicators will point us to possible changes in market dynamics.

Consider the examples

Now is the time to consider the potential trading examples in the context of this trading system. First I want to note that the examples considered on the basis of currency pair EURUSD on a chart M15. Let’s start with the shopping!

Here we see a clear signal that would allow us to access bargain. This clearly shows that the OSMA indicator crosses the zero line upwards, and the price is above the Moving Average.

This is an indicator that is developing a strong uptrend and open buy. Like, it’s very simple, but look at how this deal worked for myself! Price marched our way up to 105 points, which is for the M15 is a great profit.

Of course, such great deals will appear, not every day, but one entry of this kind will easily pay for several primary losses and still leave You in a good plus.

As for sales, we need to wait for the opposite conditions. In this case, we expect that the price is under the mA, and thus the indicator OSMA crossed the zero barrier down.

Thus, we will have confirmation that the trend is indeed gaining strength, and you can earn good money. Look example!

Here we have a clear signal. We see that the price is below mA, and the current trend confirmed by OSMA. As it turned out, the signal was correct, and the price really went down.

Thus, the current transaction would bring about 80 points, which, again, is a very decent profit per trading day.

  • Indicator Trend Wave

But, I want to say that not all so smoothly! Mentioned earlier that markets can be some problems. This is because the indicators of this system are trending, respectively, are significantly lagging behind the price.

Here is a Prime example! Day, to put it mildly, was for this simple Forex strategy not fish. Price the whole day moving in a kind of flat and didn’t go anywhere! Clearly acting on the system, the trader would receive a number of system losses.

However, these losses are quite tiny, literally 3 of the ring gear, the trader would have lost around 15 points. Remember the examples earlier when I was able to one day take over 100 points.

Thus, You can have several losing days in a row, but as soon as You meet a good trend, then immediately pay back all previously received damages, while another will be in a very good profit.

About the lagging indicators I have not spoken in vain, really, especially the OSMA have been significantly late for the current price movement. Roughly speaking, the market will unfold, and the indicator will tell us this only after some time.

Thus, we will have to enter the market not quite at the best price. According to this it is important to wait for the market to develop a strong trend so we can take profit.

That’s why I can’t recommend You to use this trading system at low ranges, when to catch a strong movement will be quite problematic. In General, we need to trade primarily in the direction of the dominant trend!

So if You are trading on M15, and it is desirable to look at larger intervals! For example, in D1 a clear downward trend, respectively, on M15, the priority will be on sale.

If visible upward trend in the older range, mostly need to consider only purchases at M15. Or at least, if You are trading against the dominant trend, then do not put before itself the big purposes to take profits.

As for shopping, they are more risky! In any case, this strategy is incredibly simple and would suit any beginner. With proper use, You can count on good profit!

About the author

forex

Leave a Comment