Forex Forum to Share, Discuss, Communicate and Trade Forex

A Personal Trading Strategy

This forum is for Forex education and for teaching and learning the ropes of trading.

A Personal Trading Strategy

Postby painofhell » Fri Aug 18, 2017 1:08 pm

While I occasionally trade from the Daily chart, primarily I use it to determine the trend of the pair.

Once I have identified the pair that I feel has the strongest trend based on the Daily chart, I will usually enter on a 4 hour or 1 hour chart...whichever time frame best optimizes my entry.Here's what I am looking for chart by chart...

The Daily Chart
The Daily Trend on the NZDJPY is down. This determination is made based on the pair making lower highs and lower lows, price action is below the 200 SMA and pulling away from it and, at the time of the analysis, the NZD was the weakest currency and the JPY was the strongest. Also, looking at Slow Stochastics, I see that it is below 20 which is a very bearish sign.

Given all of the above, I know I will only be looking for opportunities to sell the pair as they will have the greater likelihood of success. (Trading in the direction of the longer term trend offers us that edge.)

The 4 Hour Chart:
Then I will look to the 4 hour chart and look for a retracement (a move against the Daily trend) to be finishing and beginning a new move to the downside. In other words, a fresh move back in the direction of the Daily trend. Sometimes that fresh move will present itself straightaway or I may have to wait for the set up to occur.

In the case of this particular 4 hour chart I would need to wait for the pair to cycle back up as a new move to the downside has already taken place over the last five red candles on the far right of the chart.

I will also run through this same process on the one hour chart looking for the same set up.Once a“fresh move” begins on either the 4 hour or the 1 hour chart, an entry can be made with a stop placed above the highest level of the recent retracement. (Stochastics, MACD or RSI can be used to further time the entry.)

The 1 Hour Chart:
In the case of this 1 hour chart, I would be waiting for a pullback/retracement to take place to short the pair.

Since the pair has been in a strong, on-going downtrend on the Daily chart, I would have been able to successfully sell the pair at any of the points on the chart after the retracement (black arrows) takes place. The short position would be opened when momentum shifts back to the downside (Stochastics crossover within the black circles). In each instance the stop would go above the most recent high approximately at the black lines.Sidebar: Some traders will become frustrated when they see price is moving opposite the direction of the Daily trend. Don’t worry about it. It is fine since that means a retracement is taking place and once that is complete, we will be looking at an opportunity to enter the trade in our direction of choice...the direction of the Daily trend.
Open Account: Real / Demo
User avatar
Posts: 1157
Joined: Sat Aug 30, 2014 3:24 pm

Re: A Personal Trading Strategy

Postby Nathan Fields » Wed Aug 30, 2017 10:25 am

Every trader should have some trading strategies for trading perfectly in the market. I am currently trading with FreshForex broker where they provide me with the best ever trading services. They provided me with the educational materials with various kinds of strategies as well. I am currently very happy with my trading style and i follow the divergence strategy i learned from the educational materials. There are certain things i had to do it myself and now i have the best strategy ever.
Nathan Fields
Posts: 31
Joined: Wed Aug 30, 2017 7:24 am

Re: A Personal Trading Strategy

Postby James Flores » Wed Sep 06, 2017 7:26 am

Forex trading is the best thing to do. It is the most easy way to make a good amount of money. It is a very profitable business and risky as well. Losing money is pretty much common in forex trading. But you can prevent your loss by having a good trading skills along with good trading strategies. But sometimes it seems that you could not manage your time or unable to make good trading strategies to do trade well. In that case your broker can help you the most.
I chose FreshForex broker to trade with. They helps their clients in all sphere of their trading. They give good and easy analysis to their clients so that they can do trade well. This broker is very good and reliable too.
James Flores
Posts: 27
Joined: Fri Jul 14, 2017 9:11 pm

Return to Forex Education Forum


Who is online on Forum

Registered users: Baidu [Spider], Bing [Bot], Google [Bot], Google Adsense [Bot], katetrades, Yahoo [Bot]