Good day, dear blog readers and dear guests! The topic of our new articles will be trading system of the Forex market, which is characterized by its simplicity and effectiveness, based on two standard indicators of technical analysis.
Honestly, many traders are skeptical about a very simple system, arguing that it would be impossible to find a clear entry point into the market! But I can say that many, these people are seriously mistaken!
Overall, trading in the financial market is incredibly difficult. Therefore why then it is unnecessary to complicate things more, what is the logic? In fact, simple trading systems are often unable to work, the main thing – to approach the shopping process very seriously.
I very often see really simple trading systems give very good results. Unfortunately, especially new traders like to cover up your entire schedule indicators and hope that they somehow will help.
Trading system Forex, which I will tell You is not new, it appeared a few years ago. However, it really profitable, of course, if You follow all of the rules.
- A profitable system
No need to be naive to believe that absolutely all of Your transactions on the system will be closed with a profit is never going to happen. Anyway, the losses will appear not avoided, but you can maximize your profit, which will more than cover all Your losses.
This trading system is scalping, because we will use the interval M5. Some traders manage to use it on minute timeframe, but for beginners I do not recommend doing this, because of the complexity of this trade.
Regarding underlying assets, I can recommend You mostly to use main currency pairs, although some specific limits in this matter can not be.
Submitted to the trading system is adapted to trade with the trend, against the trend better not to take trades at all or not to pursue big goals. Roughly speaking, if the interval M15 M30 do You see the development, for example, a clear upward trend, in this case, M5 will be a priority for us purchases.
Of course, nobody can forbid to conduct counter-trend trade, but you need to realize that trade against the dominant trends associated with certain trading risks. Accordingly, I recommend that beginners do not trade against the trend.
Of course, in this case, transactions will be lower, however, their quality will significantly increase. But again, nobody forbids You not to trade against the trend – the choice is yours.
As for consolidation, the losing trades will not work to avoid, because the price is based on trend indicator Moving Average. Roughly speaking, in the flat the moving constantly intersect, thereby forming a unprofitable signals. However, if competently approach to linemanagement, the losses are not very large.
Initially, we need to prepare the terminal to work! For this purpose we establish two exponential moving averages with periods of 12 and 5. They will perform for us as the primary instrument through which we will make trading decisions.
- Trading system Forex
Additionally, we need to set the RSI period of 7, putting it at level 50. In this case, the relative strength index will play the role of filter for our direct deals.
We have produced these rather simple manipulation, and now it’s time to consider trading signals!
To open a buy trade, you must wait for the EMA 5 crosses EMA 12 to the upward direction. This will be our first sign that begins to develop a rising trend. Next, we look at the RSI indicator.
If at the time of intersection of moving, the signal line is the relative strength index was above the 50 level, we can safely open the bargain on purchase. Look example!
Here we first can see that from the beginning the moving average with a period of 5 crosses EMA from bottom to top. Then pay attention to RSI, and there we see that the signal line at the time of crossing the averages were above the 50 level.
At this moment we could safely open the deal to buy, and as we can see, price steadily all day went in an upward direction, and the transaction would have brought a very good profit with meager risk.
Now, with regard to sales! We will need to wait for EMA with a period of 5 crosses the EMA with a period of 12 in a downward direction. At the same time, the signal line, the RSI must be clearly under the level 50.
Here’s an example! Here we see a clear intersection of moving that shows us the development of a potential downward trend. Then we see that signal lines of the RSI indicator is located clearly below the 50 level.
At this very moment, the trader could have open sale, and as you can see, price has clearly gone down, but the deal would have been profitable! In General, you can clearly see that the potential risks in this system are negligible.
But the profit potential is huge. Yes, if You’re trading in consolidation, there will be some losses, perhaps even in a row. But it is worth the price clearly go in trends, as You will immediately receive a good profit, and discourage all the initial losses.There are days that the price goes 100 pips in one direction on the same pair EURUSD. Of course, days like this happen not every day, but in such moments it is possible to earn huge profits.
Regarding this system, I can say that it really has a huge potential, Yes, not all its signals will be profitable, but if you really are competent and responsible approach to the trading process, then, definitely, you can get a good result.
Again, you need to consider that before You some GRAYLINE. The losses will be, and that’s okay! Just be clear with the consolidated rules of their system, and everything will be fine!
I hope this material was useful for You, dear readers! Up to new meetings!