Strategies group ( 2 )
This strategy is based on 4hrs time frame.
EMA 89 and 144 applied to close for trend direction. When 89 is under 144, that means a down trend.
12WMA applied to close and 14SMA applied also to close.
Entry is done using 12WMA in the direction of the trend when price closes above or below it depending on if we are having a down trend or up and SL should be at 60-80pips while TP is 100-200pips.
When going against the trend, entry should be done using the 14SMA when price also closes above or below it depending on the 144 and 89EMA. In this chart, there lines shows entries using the
12wMA and 14SMA.
First step - the trend: 89 ema above 144 ema - we have an uptrend.
Second step: 12 WMA for buying in an uptrend. While 14 SMA for selling in an uptrend - counter trend trading.
Third step - entry rules: price closes above 12 WMA - Buy. Same approach with 14 SMA when you sell.
Returning to the trend: when you have 89 ema below 144 ema - it's a downtrend. this means you'll price closes below be looking to Sell when 12 WMA, and for counter trend trading you'll use 14 SMA to place buy orders.
MACD 12,26,9 (default settings)
Stochastic 5,3,3 (default settings))
EMA 100 (Red) - Medium Trend
EMA 200 (Yellow) - Big trend
The strategy is like this:
After the big news arrived, the price will consolidation and when it touch the 50 EMA (30 Min Timeframe) or 100 EMA (1 hour Timeframe), it will going up or down based on the trend.
Let me give you some picture so you can understand:
Here example with EUR USD in 30M timeframe:
There is some strict requirement before you're going to trade:
1. Trade AFTER ALL news for these pair is completed
2. You can wait for MACD confirmation to cross before going to trade
3. Make sure Stochastic is going down
You won't get hundred pips but WHEN the price bouncing with 50 EMA, the profit usually around 30 to 40 pips from the peak candle, and WHEN bouncing with 100 EMA (1 hour timeframe), the price usually bounce to max 70 pips from the peak candle. You have to wait and patience after making the trade, and set the stoploss to 25 to 30 pips. This strategy give me 96% winning trades, 4% loss because the trend is too weak.
Sometimes i also use this strategy to go into the trend, just dont forget to set the stoploss regularly.
If the trend is strong, usually i take profit with 30 pips.. wait for the retracement with fibonacci, then hen its going to up/down again i get into the trade again then after it made profit i set the Trailing Stop (fire and forget, then you can go to sleep) but it's too risky.
RSI TREND - BOLLINGER DIPS AND RALLIES
The RSI is a quality indicator for trend. I believe this and i am going to explain another profitable way of combining it with the Bollinger Band for good result.
INDICATORS: Relative Strength Index, Bollinger Band (all default Settings)
TIME FRAME: 4HR AND 30MIN (You could also use 30min and 5min)
Its very simple; apply the bollinger band to all time frames but its needed in 30min timeframe. In the 4hr apply the RSI. When RSI is above 50, its uptrend and below 50 is down trend. Then move to 30min for entries.
While in the 30 min time frame, in an uptrend, wait for price to close below the lower bans of the Bollinger, then a close above the lower band will make your entry for Long
While in the 30min time frame in a downtrend, watt for price to close above the upper band of the Bollinger, then a close below the upper band will make your entry for Short enjoy
- 50 SMA (GREEN)
- 100 SMA (RED)
- MACD (DEFAULT SETTINGS) or MACD Traditional
- Plot the indicators as described above
The market is bearish if the Red sma is above the Green sma
- The market is bullish if the Green sms is above the Red sma
- If the Market is bearish as said above, trade sell when MACD is over bought and crossed
- If the Market is bullish as said above, trade buy when MACD is over sold and crossed
- At your entry point, the most recent swing high is good for stoploss (few pips away from it for a short-sell trade)
- At your entry point, the most recent swing low is good for stoploss (few pips away from it for a long trade trade)
- With Instant entry 20-30pips take-profit with 1 or 2 trades perday
- Make pips, keep the money!!!
1. In the 30 Minute Chart, the Stochastic should be bullish.
(That is, the fast stochastic line should have crossed over the slow line. It does not matter how long ago the crossover took place, it should just be above the slow line and should be going upwards).
2. In the 5 Minute Chart, the Stochastic should be bullish as well.
(Fast stochastic line should have crossed over the slow line and should be moving upwards. It should not be in overbought condition yet, that is, it should not have crossed 80 yet).
3. The 5 Period EMA crossed over the 13 Period EMA from below and moves upwards.
When all three conditions are met, we buy, placing stoploss at the low of the last bar or the bar to the left of the last bar, whichever is lower.
Stochastic Setting is 8,3,4 for this system.
1. When fast Stochastic reverses from it's upward move, curves downwards and crosses the slow line from above, sell half of the units.
2. If the next bar goes below the low of the previous bar, exit completely, otherwise keep a tight trailing stoploss and enjoy the continuing bull market.
The second point of the exit strategy might seem confusing, but it is there as in a trending market, the stochastic might reverse while the market is still going up, so we do not exit completely on stochastic reversal as we do not want to miss out on the rally. But if the next bar goes below the previous bar (where we have exited half), it is confirmed that there might be a reversal, though short term, but we exit with the profits we have. I tend to avoid taking positions if the crossover is near an important support or resistance level.
For going short, the exact opposite of the above rules is used.
I want to share one strategy which is based on macd and adx.
The strategy is as follows:
Time frame - Daily.
Indicators - Macd (3,10,18)
ADX(18) WITH + DI AND - DI LINES
Buy setup - macd should give buy signal. +di should be above -di. if +di is below -di and macd gives buy signal then ignore it at that time and wait for + di to go above - di to make a long entry.
Sell setup - macd should give sell signal.
- di should be above +di .if -di is below +di and macd gives sell signal then ignore it at that time and wait for -di to go above +di to make a short entry.
Stop loss - use it as per your risk appetite.
Exit - use trailing stops to exit because it will allow you to capture maximum profit.
One thing which is important while using this system is that you should trade with proper money management techniques.
Indicators - Stochastic (5,3)
2 Days exponential moving average.
4 Days exponential moving average.
Buy Setup - Stochastic(5,3) should be below 50.
Buy when 2 Days EMA crosses 4 Days EMA from
downside to upside.
Short Sell Setup - Stochastic(5,3) should be above 50.
Short Sell when 2 Days EMA crosses 4 Days EMA
from upside to downside.
Stop loss - Below low of the Entry day but it should not be more than 3 % from your entry price this is my way of using stop loss but you can use stop loss as per your risk appetite but try to maintain Risk:Reward ratio of at least 1:3.That is if your target is 15 your stop loss should not be more than 5.
Target - Exit when Stochastic(5,3) reaches near overbought zone i.e near 80 if you are long.
Exit when Stochastic (5,3)reaches near oversold zone i.e. near 20 if you are short.
2 Days and 4 Days emas crossover provides early entry into the trend and stochastic helps to filter out false signals.