Forex Strategies

Trend trading strategy. Trend

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Greetings, dear friends! Today the topic of our new article will become trend trading strategy 100 PIPS PER DAY. The system can be classified as simple, however, even in spite of its simplicity, when used correctly it can give quite a good profit.

Me personally, she liked the fact that there is a strong cluster of indicators, in the context of the strategy they used only two. Many novice traders don’t quite understand this, as a rule, work schedule, they hang a whole bunch of different indicators, believing that they will be able to find a good entry point.

However, they do not realize that a large number of indicators plays a cruel joke with them. It turns out that the readings of different indicators just contradict each other, thus confusing newcomers.

I even quite understand newcomers, and why they love lights! The fact that they take us the main task – to think and analyze the market. Agree, it’s much easier to act blindly on the basis of the indicator than to sit and analyze the market.

But, don’t get me wrong, with all this, I’m not telling You that indicators are unprofitable and did not need, it is slightly different. Just do not overdo it with their number, if You install a dozen indicators, then, believe me, it is easier and easier to not become.

  • Interesting system

Several indicators (2-4) would be enough to find the normal point of entry. Personally to me this trend trading strategy liked the fact that it involves the use of indicators, but it requires from the trader a certain understanding of the market, and I will tell about it further.

System description

As I said, in General, represented a trading system is quite simple, and is based on the use of two indicators. One of these is the moving average while the other is a modified stochastic.

I especially want to commend Your attention to the fact that the moving average is a key tool of the strategy. This suggests that we have to trade in the period of development of the directional trend of the market. If to speak precisely on time, appropriate period, for us to be a European and the first couple of hours of the American session.

To trade during the development of consolidation is not recommended. Again, our main indicator is the trend, and during consolidation, the price will cross moving constantly in different directions, and we thus get false signals.

Of course, we cannot predict when the trend will end and begin to move sideways, so the losses are inevitable in any case. However, it is a good position with the trend will allow us to recapture of previously received damages, but also in the aggregate to generate a profit.

At the same time, no one has canceled the ability to analyze the situation of the market. That is, if in this system You will thoughtlessly trade only on indicators then you should expect positive results.

As for currency pairs, there is generally no restriction, since the present trading system is perfect for any traded asset. But You specifically choose those assets with which You feel comfortable in to work!

Of the relevant transaction

Before start trading, we need initially to prepare to work our terminal. To begin with, we set the usual moving average with period 55. With her help, we will watch the direction of the current trend in the market.

Additionally, we installed custom with tochastic through which we will filter the current transaction. After these simple manipulations, you can start to find entry points into the market.

Consider the examples we will be on the basis of currency pair Euro-Dollar when you use the interval M15!

Here we see an excellent point to buy. For starters, the price crosses upward the moving average and the stochastic confirms the current signal in the form of intersecting signal lines. As we can see, the price soon really moved in an upward direction, and the signal was correct.

There is a good signal to sell, as the price is located under the moving average, while stochastic has confirmed the current entry point. Soon the price is really noticeably gone down, and that the potential transaction would bring a good profit.

  • Strategy PHANTI

The most common entry points that you can use in this trading system. But there is another trading approach, but it is suitable for more advanced traders, as necessarily need a basic knowledge of the methodology of Price Action.

The method consists in the fact that we will work to rebound from the moving average, as the moving is good enough to fulfill yourself as dynamic levels of support and resistance.

Please pay Your attention to the plot, which is marked as a gray rectangle. Here we see a false break of the moving average, then the price is fixed immediately under the mA. For us it was a good opportunity to open short trades that the Ura would work out themselves.

In General, if You see that the price touches the moving and visually strong rebound formed a pattern of Price Action, it is safe to open a trade. However, we should not trade more than two retested in a row, as the next time the price approaches the moving average, it could easily break.

Again, this approach is suitable for more advanced traders and beginners are recommended to trade using the first technique.

As You can see, this trend trading strategy at the same time implies the use of indicators and their own vision of the market. Overall, if You like to trade only on the indicator, say, drew an arrow and we made the entrance, it is likely that this system will not fit You!

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