Simple Moving Average ADX forex strategy

The 100 period simple moving average - ADX forex strategy is used to buy dips in up trending currency markets while selling rallies in down trending markets. The overall trend is determined by a 100 period MA. We consider the market bullish if price is trading above the 100 MA while bearish if price is trading below the 100MA. We look for buy signals ( ignore all sell signals) when price is considered bullish, we look for sell signals (ignore all buy signals) in a bearish market.

Recommended time frames: 1 hour and above

Trading rules to enter the market

Buy order

> Price above 100 simple moving average
> DI+ crosses DI- from below
> ADX at or above 25 value (indicates trending market)
> Enter long trade
> Set stop 3 pips below the most recent level of support
> Trade objective: 1:2 risk to reward (min obj. should be 50 pips)

Sell order

> Price below 100 simple moving average
> DI- crosses DI+ from below
> ADX at or above 25 value (indicates trending market)
> Enter short trade
> Set stop 3 pips above the most recent level of resistance
> Trade objective: 1:2 risk to reward (min obj. should be 50 pips)

Trading example: Let's have a look at the Pound/Dollar 1 hour chart below

GBP/USD Buy Trade Explanation

• Price is bullish - trading above the 100 simple moving average.
• The black circles indicate the time to go long in the market @ 1.5475. (ADX>25, DI+ crosses DI-)
• Stop loss is set 3 pips below the most recent level of support @ 1.5452
• Total trading risk: 23 pips. (entry price - stop loss price)
• Minimum trade objective: 50 pips

ADX-MACD Easy Forex Trending System

This forex trending system is based on two standard indicators, the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX). The strategy relies on a +Di -DI cross-over system confirmed by the MACD indicator for primary trend direction. The strategy can be used on any currency pair and time frames above the 30 minutes.

Used indicators settings: MACD default settings (12,26,9), ADX (30)

GBP/USD Hourly Chart Short Trading Example

Trading Rules

Long trades:

• MACD trading above 0
• +DI crosses above -DI
• Place stop loss 3 pips below the most recent support level
• Enter long trade at the candle's close
• Target level 1(T1) : Risk x 1.5
• Target level 2(T2) : Risk x 3.0
• Exit trade if MACD closes back below 0

Short trades:

• MACD trading below 0
• -DI crosses above +DI
• Place stop loss 3 pips above the most recent resistance level
• Enter short trade at the candle's close
• Target level 1(T1) : Risk x 1.5
• Target level 2(T2) : Risk x 3.0
• Exit trade if MACD closes back above 0

Now let's explore the above short trade:

The example is a short GBP/USD Dollar trade on the 1 hour chart. In the above figure, MACD is trading below 0 (starting at 23 feb 2010). We wait until -DI trades above +DI for a short trade setup. Feb 24 2010, -DI crosses above +DI.

We enter a short trade at 1.5407. Our stop loss is placed 3 pips above the most recent resistance level at 1.5480. Total risk on this particular trade: 77 pips. Price objective T1: 77 pips x 1.5 = 115 pips. Price objective T2: 77 pips x 3.0 = 231. Both profit targets were hit.

Tip: Move stop loss on the remaining half position (T2) to break even once T1 target is reached, this creates a risk-free trade.

Simple Forex Strategy - Dolphin Trader

Dolphin Trader forex strategy buys dips in bullish markets while selling rallies in bearish markets. It’s a universal trading strategy that works on every time frame and currency pair. Let’s have a closer look how it works.

The Purpose of The Dolphin Trading Strategy

• Buying dips in up trending markets.
• Selling rallies in down trending markets.

How it works?

Dolphin trader consists of two moving averages. A buy zone is created when the short term moving average crosses the long term moving average from below. On contrary, a sell zone is created when the short term moving average crosses the long term moving average from above. See picture below.

The buy zone will be used to trade long signals and the sell zone to trade sell signals.

Buy and sell signals

BUY Signal: Buy zone + Laquerre crosses from below 0.15 back above 0.15

Sell Signal: Sell zone + Laquerre crosses from above 0.75 back below 0.75

Stop loss

BUY Signals: Place stop loss 1 pip below the most recent support level.

SELL Signals: Place stop loss 1 pip above the most recent resistance level.

Profit Target Levels

Total trading risk x 1.5

Dolphin Forex Strategy Trading Example

In the above example, a sell zone was created by the two moving average system – the 5EMA has crossed the 200 SMA from above thus creating a sell zone.

In this case, we will be looking for sell trades only. As you can see, the Laquerre indicator crosses back from above 0.75 back below and we immediately sell the EUR/USD at 1.3127 (at the open of the new candlestick).

We place our stop loss above the most recent resistance level at 1.3191. Total risk (pips): 64

Calculating Target: 64 pips (risk) x 1.5 = 96 pips (TP @ 1.3031)

Strategi Trading Inside Day, simple namun akurat

Halo rekan trader!
Suatu strategi trading yang bagus tidak harus menggunakan indikator trading yang rumit. Bahkan karena banyaknya indikator yang kita gunakan terkadang malah membuat strategi trading kita menjadi tumpul.

Everything should be as simple as it is, but not simpler
~ Albert Einstein

Kali ini akan membahas suatu strategi trading yang sangat simpel dan tidak lebih hanya menggunakan pengamatan mata saja. Namun meskipun simple, strategi ini sangatlah populer di dalam dunia trading profesional karena cukup akurat dan mampu diandalkan oleh para trader.

Strategi Trading Inside Day

Inside day adalah suatu pergerakan candle dimana high dan low hari ini tidak lebih besar daripada high dan low pada hari kemarin. Strategi ini paling bagus diterapkan pada daily time frame, namun ada juga trader yang menggunakannya pada hourly time frame.

Strategi ini dapat diterapkan pada semua pair mata uang, namun lebih bagus apabila diterapkan pada pair mata uang yang mempunyai range trading harian kecil seperti EUR/GBP dan EUR/CHF. Semakin banyak candle inside day yang terjadi, maka semakin bagus pula strategi ini untuk digunakan.

Berikut adalah tips trading untuk mengimplementasikan strategi inside day ini,

Posisi BUY :

• Temukan pair mata uang yang mempunyai kondisi candle inside day pada time frame harian (daily).
• Lakukan entry posisi BUY 10 pips diatas harga high candle inside day pada hari sebelumnya.
• Jangan lupa untuk memasang stop loss.
• Lakukan take profit apabila kita sudah mendapatkan profit sebesar dua kali lipat dari nilai stop loss kita.

Posisi SELL :

• Temukan pair mata uang yang mempunyai kondisi candle inside day pada time frame harian (daily).
• Lakukan entry posisi SELL 10 pips dibawah harga low candle inside day pada hari sebelumnya.
• Jangan lupa untuk memasang stop loss.
• Lakukan take profit apabila kita sudah mendapatkan profit sebesar dua kali lipat dari nilai stop loss kita.
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Berdasarkan pengamatan dari kondisi candle inside day ini, jika posisi candle inside day terbentuk lebih berat keatas / posisi bullish, maka besar kemungkinan arah pergerakan nya cenderung menembus keatas. Begitu pula sebaliknya, apabila posisi candle inside day terbentuk lebih berat ke bawah / posisi bearish, maka besar kemungkinan akan bergerak ke bawah.

Saya yakin bagi rekan-rekan profesional trader mungkin sudah mempunyai pengalaman dalam menggunakan strategi ini. Namun bagi yang masih tergolong baru terjun di dunia trading, strategi trading ini dikenal cukup akurat dan dapat diandalkan untuk meraih profit.

Kupas Tuntas Teknik Scalping Forex

Melanjutkan pembahasan strategi scalping forex sebelumnya, ada seorang scalper trading bernama Paul Rotter. Beliau cukup terkenal sebagai “The Most Successful Scalper Trading”. Dari wawancara beliau bersama salah satu media, ada beberapa hal penting menyangkut teknik scalping yang digunakan oleh Paul Rotter.

Teknik Scalping Trading Menggunakan 2 Chart

Menggunakan chart pada time frame 30 menit untuk memperkirakan pergerakan trend dan menggunakan time frame 5 menit untuk melakukan open atau close posisi.

Teknik Scalping Menggunakan Indikator

Untuk menunjang teknik scalping, pada umumnya scalper trading menggunakan beberapa indikator teknikal seperti indikator fibonacci, trend line dan CCI.

Memanfaatkan Moment Pembukaan Market

Para scalper trading biasanya mengincar waktu untuk scalping menjelang dibukanya market Eropa ( sekitar pukul 12:00 s/d 15:00 WIB ) dan Amerika ( sekitar pukul 20:00 s/d 22:00 WIB ). Pada jam-jam tersebut volume trading yang terjadi di forex market cukuplah besar.

Intisari

Teknik Scalping bisa menjadi sesuatu strategi trading yang menyenangkan, namun juga bisa membuat stress dan kelelahan. Buatlah target profit harian yang harus anda capai, jangan terjebak untuk trading berlebihan.

Saat trading Anda mengalami loss saat menggunakan teknik scalping, janganlah sekali-sekali berpikiran untuk membalas dendam kerugian yang anda alami saat itu juga. Masih ada hari esok dimana anda bisa trading kembali menggunakan teknik scalping.

Secara perlahan mungkin anda akan menemukan apakah anda cocok sebagai seorang day trader ataupun swing trader sebagai akibat dari kepercayaan diri dan segala pengalaman yang anda dapatkan selama menggunakan teknik scalping.

Satu petuah bijak yang kami dapat dari Paul Rotter,

Q: Shouldn’t a trader stick to his opinion?
A: No, definitely not. An analyst or some kind of guru has to stick to it, but a trader should have no opinion. The stronger your opinion, the harder it is to get out of a losing position

Semoga kita bisa lebih menyelami sisi psikologis yang sangat menentukan untuk membentuk mental menjadi seorang scalper trading.

Seorang master scalper Paul Rotter. Prestasi beliau sebagai scalper trading yaitu telah berhasil membukukan profit sebesar 65 – 78 juta dollar setiap tahun dalam 10 tahun karir tradingnya.

Benarkah strategi yang diterapkan oleh Paul Rotter?
Bagaimana dengan anda? Indikator apa yang anda gunakan dalam ber-scalping?

Forex Fibonacci Indicator Explained

As most of you know that the forex market basically moves in waves and there will be time where the market extends and there will also be time where the market retraces.

One of the best tools that you can use to time this retracement and extension is the forex Fibonacci levels.

So What Exactly Is Fibonacci?

It is a number sequences that is named after Leonardo of Pisa and the Fibonacci number sequences goes like this

0, 1, 1, 2, 3, 5, 8, 13 and so on. (Add the first 2 numbers to get the next)

However in trading, we are not interested in the sequences, we are actually interested in the Fibonacci ratio that the sequences create.

These are the ratio that we use as a forex trader.

Below are the retracement ratios

- 0.236
- 0.382
- 0.500
- 0.618
- 0.764

Below are the extension ratios

- 1.272
- 1.382
- 1.500
- 1.618

So How Can You Use These Ratios In Trading?

The Fibonacci ratio is in fact used as a level of support and resistance. These are areas where you will SELL or BUY depending on what you see and where you are.

Although there are quite a number of ratios given above, the important ones are the 0.382, 0.500, and 0.618 as they are usually area of strong support when the price retraces down and area of strong resistance when the price retraces up.

Here Is How You Should Plot Your Fibonacci Levels In An Uptrend

Step 1: Using the tool provided by your platform, Pick a high point and a low point

Step 2: Select the levels that you want to display. (We will select 0.382, 0.500, 0.618, 1.272, 1.382, 1.500 and 1.618)

If you are in a downtrend, all you have to do is to switch the step 1 points.

Uptrend Fibonacci

Downtrend Fibonacci

In the case where you are in an uptrend, you will find that the retracement of your price will usually land on the 0.382, 0.500 or the 0.618 level as these are area of strong support and the price will then extend up to continue in its uptrend movement.

If you ever find the price moving below the 0.382 level, there is a high chance that the trend is reversing.

In the case where you are in a downtrend, the market will retrace upward and it will also find its resistance at 0.382, 0.500 and the 0.618 levels. Similar to the uptrend, if the market retraces above the 0.382 level, there is a high chance that the market is reversing.

Fibonacci Support and Resistance

In my next blog post, I will show you how to trade using Fibonacci Strategy and how you can make use of the 1.272, 1.382 and the 1.618 levels. In the meantime, you should try to plot the Fibonacci levels on your chart to see the power of it.

My Forex Scalping System Revealed

Forex scalping has become more and more popular among new traders. This is because forex scalping tactics allows the trader to see fast profit sometime within less than 20 minutes of trading and this is what entices some traders.

Although scalping the forex market can see quick profit, it can also amount to quick loss if you do not execute it with proper analysis. Due to the scalping nature of your trade as a scalper, you can enter several trades within 1 hour and it can amount to a sizeable loss if you have consecutive loss trades.

Here are the forex scalping analysis you can do:

1) Mark out the important support and resistance levels, typical support and resistance levels are

• Fibonacci 0.618, 0.5. 0.328
• Pivot Point S3, S2, S1, PP, R1, R2, R3
• Previous high will be your current resistance and previous low will be your current support.

2) Use oscillating indicators like stochastic or RSI or even MACD can help you to time your entry more accurately.

• If you are looking to SELL, you should try your best to wait for the oscillating indicator to go overbought and start to curve down.
• If you are looking for BUY, you should try your best to wait for the oscillating indicator to go oversold and start to curve up.

Besides timing your entry, these oscillating indicators can also help you to time your exit.

• If you go SHORT, you should be looking to exit your trade when the oscillating indicator reaches the oversold zone.
• If you go LONG, you should be looking to exit your trade when the oscillating indicator reaches the overbought zone.

3) Confluence of Events – In trading, we should also wait for confluence of events to happen before we enter or exit a trade. Confluence of events refers to the situation where two or more conditions to enter a trade or exit a trade happen together. This can gives you more confident and assurance in the trade.

• The best long entry point is when the price hits the support level with the oscillating indicator reaching the oversold zone and start to curve up.

• The best short entry point is when the price hits the resistance level with the oscillating indicator reaching the overbought zone and start to curve down.

Above are the forex scalping system I have been using. Although some of you may be thinking that it is a simple strategy and may even wonder if it can make you money, you need to know that the most profitable strategy are those that are easy and simple to execute.

I do not encourage you to start trading this strategy immediately and I actually hope that you have the habit to try out new strategy on DEMO account and master the way to execute it before trading LIVE with it.