Forex Trading Strategy - Bagovino Method

Forex Strategy “Method Bagovino” very simple, trade is conducted on the 1-hourly chart (H1), it must install EMA (close) with a period of 5 and 21. And as RSI indicator with a period of 21. All these indicators are in any standard set of terminal Metatrader 4.

In installations RSI indicator determines the level of 50.
Once the 5 and 21 EMA cross and up, and RSI indicator crosses a bottom-up level 50 - open the deal to buy (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!)
Conversely, as soon as the EMA cross on the graph down, and the RSI indicator falls below 50 - opening the deal to sell (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!) The best situation as soon as Both intersections occur simultaneously (the intersection of EMA and RSI indicator crosses a level 50).

This forex strategy at history has shown about 85% of profitable signals!
For work, you can choose any currency pair.

Examples see in the picture:

The first time (the situation on the left) - First there was the intersection Movings, but we had a deal only a few hours later, after the RSI has crossed the level of 50 and closed below it.

The second time (the situation on the right) - the intersection Movings and RSI occurred for 1 hour, an hour after closing a deal was made for the purchase.
Stop-loss recommend stavt at your discretion (subject to approval by you MM (risk management) - as you see fit, but I still recommend risking no more than 0,5-2% of the depot for each transaction and stop-loss set: purchase - below the previous low candle in the sale - maximum above last candle).

Also propose to use the indicator forex Vegas 1 Hour to determine the levels for the partial closure profitnyh trade positions. For example, you have opened a bargain on a signal Bagovino 0.3 lots. On the first line can close the 0.1 unit, and the rest put in the level “zero” (well suited for this trailing stop). On the second line cover is 0,1 lot, and have the remainder of the latter can close or you can just pull it into profit and into the “free floating”, treylenguya rest position such as at a distance of 25-50 points, while hoping to catch a trending move.

Forex Trading Platform - Meta Trader 5

The difference between MT5 and MT4
The function of MT5 is much stronger than MT4.

Firstly, MT5 terminal is able to use more and more financial products. At present, except of forex and futures, it can also use in other financial products including the stocks and the options.

Secondly, the function of MT5 becomes more and more. Here are details of new functions:

1. Twenty-one kinds of time phase analyze the quotes.
2. There are thirty-eight internal indicators.
3. Thirty-nine image object.
4. There are four Zoom modes.
5. Seventeen specialized display indicator styles.

Forex Scalping Strategy

Using Fibonacci Levels for Scalping the Forex Market
This article is part of our guide on how to use scalping tequniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Scalping a strongly trending market is very different from scalping a quiet, tame market where price action is confined in a small range and is going nowhere. In a ranging market scalpers will buy or sell, and wait until the price comes back to where it left, and keep gathering small profits until the prevailing range pattern is eliminated. When trading a trending market, however, we must be careful to ensure that our orders follow the established trend. Counter-trend scalping is also possible, but since the preferred strategy of most successful traders is trend following, we’ll concentrate our attention on using fibonacci extensions in a trend following method in this article.

High volatility requires a strict approach to realizing both losses and profits. A scalper who is trading in a tame, range-bound market can be a bit more relaxed and arbitrary about his risk controls (they must still be applied with discipline, but not in the robotic manner which must be applied in trending markets), because the market is not expected to make sharp movements due to fewer market participants and a smaller amount of liquidity (not to mention that there is no news catalyst for strong price movements.) But a trend scalper must deal with such conditions at all times.

Trend Following Method
In this section we’ll discuss the use of the Fibonacci extension levels for the determination of trade direction while scalping trending markets. Scalping in trends can be difficult, because of the size of the sudden fluctuations, and the lack of clarity (at least in the short term) with respect to the eventual destination of the price. The Fibonacci extension levels are very useful in analyzing trends in all cases, and scalping is no exception to the rule

Our aim in using this indicator is identifying levels where the price may rebound. For drawing the extension, we’ll identify the beginning and end of the price movement which we expect to be extended, so to speak, in order that a new trend is created. In the 5-minute chart of the USDCHF pair, we have identified a sudden and sharp movement beginning at around 4 am on 23rd July, and decided to draw its extension after the first red bar where its momentum is temporarily checked. Upon drawing the extension in the indicated area, we notice the 61.8, 100, and 161.8 extensions of the first movement.

Careful examination of the chart above shows us not only that the price rebounded several times at the extension levels of the indicator, but also that these levels served as strong attractors pulling the price towards themselves. The 100 percent extension level, for instance, provided a support which prevented the price from “falling through” twice, as observed. And the other two levels similarly created performance bars for the trend which, once broken, created further momentum for the trend.

Trading against a trend is dangerous, and the risk of sudden reversals is no less dangerous for scalpers. As such we need a tool which will help us identify the general direction of the trend, so that even if we suffer some losses, eventually our gains will justify our trading activity. The Fibonacci extension level is a great tool for this purpose since it allows us to guess with a reasonable degree of accuracy the main momentum of the price action. In the above example, we’d be scalping the market by buying at the red arrows shown on the chart. If the price returned to the resistance or support levels indicated by the extension level, we’d stop trading for a while and await the market action to present some clarity (is the trend reversing?) But as long as the trend is intact our strategy would involve scalping between the extension levels to accumulate profits.

---- by; forextraders.com ----

Forex Trading Strategy

3 Simple Breakout Strategies You Can Use When Trading Forex
This article describes three different ways you can trade forex breakouts.
Trading breakouts is one of the most popular methods of trading the forex markets because you often get large moves after a period of consolidation. So with that in mind, I've listed below three basic strategies you can use to trade these breakouts.

The first of which is based on technical analysis, and in particular the Bollinger Bands indicator. Bollinger Bands are envelopes based on a moving average and a standard deviation and are most useful in showing areas of support and resistance through the two outer lines of the envelope.

Therefore when the price breaks out of either the upper or lower limit, this very often is a strong indication that a breakout is about to take place in the same direction. It's particularly the case after a period of consolidation where the bandwidth of the Bollinger Bands has narrowed out. For greater success you can use the breaching of one of the outer lines to gain your attention, and then wait for a pullback to either the EMA (5) or EMA (20), for example, for a good entry point.

The second method you can use to trade breakouts is also based on technical analysis and involves various Exponential Moving Averages, or EMA's for short. This is a method I have developed over the years that makes use of the 5, 20 and 50 period EMA's (you can also use the 100 or 200 period EMA as well).

What you do is wait until the price, along with the 5, 20 and 50 period EMA's have all flattened out and are all very close to each other. Then you simply wait for a strong breakout from this narrow range and take a position close to the EMA (5) when the breakout takes place. This can be very rewarding when you catch a good breakout, particular when you use longer time frames.

The final method is based entirely on price and uses no technical indicators at all. It's based on the fact that the price does not stay in the same range forever and will at some point break out of the current trading range.

I have to admit I don't use this method myself but there are various ways you can trade this way. Some traders like to use the previous day's upper and lower price range, and trade any breakouts of this range the following day. Similarly some traders wait until a very narrow price range has formed and then wait for a breakout to occur.

So overall there are various different ways you can trade breakouts, all of which have their merits. Despite being quite basic methods, they can be extremely lucrative because the price often moves strongly in one direction or the other after a sustained period of consolidation.

Forex Trading Strategy

Strategy for GBP/JPY
I’m going to explain the strategy I use to trade GJ and I’m going to be posting my weekly/daily analysis of this pair. I don’t use anything fancy, I use some basic stuff that most traders use and some common sense

The indicators I use are:
* Fibonacci retracement levels
* Trendlines/Channels
* 5 period simple MA
* Candlestick patterns
* Support/Resistance levels
* Momentum



As you can see it’s all simple and basic stuff except maybe for the fibonacci retracement, because every trader could use it differently. If you have any doubts about any of the stuff I use, either ask or just do a simple google search and you’ll find plenty of information about them.

Using the fibonacci retracement on different timeframes (1H, 4H, Daily, Weekly) is very important, because sometimes some of them overlap and that tells us where we might find strong support/resistance. I’ll post some examples.
If you have been following my posts on Auslanco’s thread, you will know that we use the 5SMA for a good entry point when a retracement occurs.
Most of the time, I trade based on the 4H chart, but I keep an eye on the daily chart and sometimes the weekly chart. I use the 1H chart for a good entry point. Any TF less than 1H has a lot of noise and it is very risky trading GJ on very small TF’s.

Using stop-loss, I always wait for my trade to go in my direction for about 50-100 pips before I move my SL and lock in a very small # of pips (10) and then just let it run until it reaches my TP, this way I don’t let a winning trade turn into a losing one, and if my SL gets hit, no worries coz +10 is way better than anything negative

Momentum & 5sma
Before using the Momentum indicator and 5sma, you must have auslanco’s QQE indicator. I’ll explain how to catch a retracement in this following example:
When QQE 4h is crossed upwards, and QQE 1hr is crossed upwards, and the Momentum at the beginning of the next 1h candle is pointing downwards, price will usually retrace to 1hr 5sma, it’s that simple.

---- by; KarmoStaji -------

Forex Trading Strategy

Oscillator and Momentum Indicator
Forex technical analysis uses mathematically derived indices to decide when to enter or exit a trade and has become by far the most common strategy among forex investors.
Investors in today's forex market can count on a variety of analysis tools to help them better guide their decisions and develop a consistent and systematic strategy, therefore minimizing impulsive decisions that can be devastating in this volatile market.

Such indices are mainly divided into two separate groups, oscillators and momentum indicators: the former try to predict a future change in trend, while the latter help assessing whether a trend that has already started will either continue or revert.

Oscillators in Forex

Some of the most widely used oscillators include:

* Stochastics: an oscillator that indicates whether the market is currently in an 'overbought' or 'oversold' phase. When the stochastics graph goes beyond a certain threshold, investors' reactions are usually to sell (overbought) or buy (oversold).
* Parabolic SAR: helps identifying the end of a trend in a timely fashion on a bearish or bullish market. It is plotted on the candlestick graph, and where the index crosses the candlestick graph itself, this is generally a seen as a symptom of a trend change.
* Relative Strength Index (RSI): similarly to stochastics, indicates the strength of the current trend on a scale from 0 to 100 — 0 to 50 for bearish, 50 to 100 for bullish.

Momentum Indicators in Forex

Some of the most common momentum (or lagging) indicators include:

* Simple Moving Average: average value of the last n candlesticks, where n is a configurable parameter.
* Exponential Moving Averages: similar to the simple moving average, but the most recent data has a much stronger influence over the value of the index, which means this indicator is much more sensitive to changes in value.

Combining Two or More Indices to Find Your Strategy

The very high number of indices available makes it unpractical to build an investing strategy based on the majority of them: forex investors are therefore required to pick and choose the tools that seem best suited to their own needs and bring the best results, and to figure out how to combine them all to create a profitable investing strategy.

An example of combining two indices to obtain a more accurate trend prediction is the so-called "moving average crossover": exploiting the characteristics of simple and exponential moving average — one highly subject to recent changes in trend, the other more equally weighted on previous data — it is possible to plot both on the same chart and decide to enter or exit a trade when the two cross each other.
Beyond Indexes: Fibonacci, Pivot Points, Elliott Waves

Technical analysis tools are not confined to indices only. There is a wealth of other mathematically or statistically derived factors, patterns, trend lines among which Fibonacci series, pivot points and Elliott wave theory applied to forex are just a few, valid ones.

Some of them — particularly those linked to the Fibonacci sequence — are speculated to hold true only because of their very widespread use by investors of all the world, which ends up influencing the market itself.
Technical Analysis vs. Fundamental Analysis

Even those who believe to have found the perfect combination of oscillators and indicators that can reliably anticipate market movements should never ignore fundamental analysis, the technique consisting in trading based of market news, which is often preponderating in short term trades: the right forex strategy is a wise mix that constantly keeps the two in consideration, without ignoring or underestimating their capabilities.

Forex ; Elder-rays

Elder-ray system, Developed in 1989, The Elder-rays use exponential moving average indicator, or EMA, the preferable period of which is 13 as a tracing indicator. The oscillators reflect the bears' and bulls' power.

The Elder-rays include the characteristics of trend following indicators and oscillators. Three charts for placing the Elder-rays are used: on one side - the price chart and EMA are placed, on two other sides - bulls' power oscillator, or just Bulls Power, and bears' power oscillator, or just Bears Power.

Elder-rays can be used either individually or in bunch with various other tools. While using them individually, it's important to remember that the EMA slope defines the trend movement, and position should be opened in its direction.
The Elder Ray is a very precise and effective means of highlighting discrepancies between bull and bear power and prices and helping to choose right time for the best trading opportunities.

Bulls and bears power oscillators are used for determining the moment for opening or closing of positions. One should open the following positions:

It's better to sell when:
1. The Bulls Power oscillator remains positive, but declines step by step;
2. The Bulls Power oscillator declines leaving the Bears' discrepancy;
3. The last bottom of the Bulls Power oscillator is lower than the previous one;
4. There is a decreasing trend defined with the EMA fluctuations

The Elder Ray index actually consists of two indicators:
"Bull Power" (Daily High - n period moving average) and
"Bear Power" (Daily Low - n period moving average).

It's better to purchase when:
1. The Bears Power oscillator is negative, but still growing;
2. The Bears Power oscillator increases after the Bulls discrepancy;
3. The last peak of the Bulls Power oscillator is higher than the previous one;
4. There is an increasing trend defined with the EMA fluctuations



It is better to keep back at the positive values of the Bears Power oscillator and not to open short positions when the Bulls Power oscillator is negative. The best time for trading is discrepancy between the Bulls and Bears Power and prices.
In fact, the Elder Ray index includes 2 indicators: "Bear Power" (Daily Low - n period moving average) and "Bull Power" (Daily High - n period moving average)/

Bear Power is used to calculate the potential for the price to fall under the moving average. And Bull Power is used for calculating the potential for the price to grow over the moving average. There are short positions when the Bull Power is more than zero and there is a bearish discrepancy. And Long positions are assumed when the Bear Power remains under zero and there is a bullish discrepancy.