Tag: Forex strategy

Trading System Based on 4 EMA Crossover

The trading strategy that we present below is a system based on the crossover of 4 exponential moving averages (EMA) of 5, 10, 20 and 50 periods. In this sense, it is no different from other similar strategies, but includes indicators such as the RSI and stochastic oscillator to measure market momentum, which allows the trader to confirm the reliability of the crosses. We should recall that in trading systems based on moving averages crossies false signals may occur and therefore it is important to employ means for filtering signals.This system also includes a custom indicator for Metatrader 4 (EMA/EMA Cross Indicator) which serves to signal EMA crossings.

The system and its rules are quite simple as discussed below. As always we recommend trying the strategy on a demo account before risking real money.

Trading Strategy Based on Momentum Changes in Different Time Frames

by rcanessa

Certainly the approaches to trade in the financial markets are numerous and varied. Many traders base their strategies on the fundamentals of supply and demand while others use more technical tools such as moving averages, price oscillators and other. In this article we study an interesting approach based on market momentum interpreted through the RSI indicator.

First of all we will indicate that the markets are indeed driven by changes in supply and demand. However, these changes are not always due to the publication of news and relevant market indicators or related events. Sometimes the markets move in one direction or another due to different factors that can not be predicted by fundamentals, such as a correction when a trend starts to run out. This is where certain indicators such as the RSI can be useful.

The Best Forex Daytrading Strategies IV

by rcanessa

In this article we finish the series on daytrading and scalping strategies based exclusively on price action applicable to Forex and other markets, we hope you have liked it.

These strategies are based on the identification of classic price patterns from technical analysis.

You can access the third article in the series at the following link: The Best Forex Daytrading Strategies III

The Best Forex Daytrading Strategies III

by rcanessa

In this article we will continue with the series of articles on scalping and daytrading strategies based exclusively on Price Action that may be useful for you to trade in Forex, although they can also be adapted to other markets.

These strategies are based on the identification of classic price patterns from technical analysis.

You can access the second article in the series at the following link: The Best Forex Daytrading Strategies II

The Best Forex Daytrading Strategies II

by rcanessa

In a previous article we explained some basic day trading strategies for Forex and other markets, mainly based on price action.

Continuing with the series on daytrading strategies based exclusively on Price Action (the most common price patterns), we are now going to present another series of strategies based on classic price patterns of technical analysis.

You can access the first article in the series at the following link: The Best Forex Daytrading Strategies I

The Best Forex Daytrading Strategies

by rcanessa

In this article, we present a complete collection of ideas to build daytrading strategies based exclusively on price action that can be useful to trade in Forex, although they can also be adapted to other markets. By the way, I have been told that these strategies were used on a trading desk of a well-known US investment bank. Although logically I have not been able to corroborate this, the truth is that these trading ideas are at the least original since they combine different patterns in an unusual way. Having said that, we will now study these strategies in detail.

Trading Strategy with the Non-Farm Payroll (NFP) Indicator

by rcanessa

The Non-farm payrolls (NFP) indicator is the report on total salaried workers in the United States except agricultural jobs, government workers, nonprofit workers, and private domestic workers. Today it is a key economic indicator for the United States.

The publication of the NFP report causes very wide movements in the Forex market, which are among the largest movements produced by the publication of economic news. This is why many analysts, investors, speculators, and investment funds try to anticipate the result of the NFP and the movement it will cause. Due to this great expectation before the publication of this economic indicator, the market can react with wide movements even when there is no deviation between the forecast and the final result of the NFP.

In this article, we are going to discuss some trading aspects related to this economic indicator, especially to avoid the exposure to excessive risks due to the high volatility that the release of the NFP can cause.

Price Reversal Trading System with ZigZag and RSI Indicators

by rcanessa

The trading system that we are going to present below is a market reversal strategy that uses several modified technical indicators developed for the Metatrader 4 platform. Due to this, this system can only be used on this trading platform. This methodology can be used to trade in most markets, including Forex.

This strategy aims to identify the areas in which the price is likely to change its trend. The modified indicators are based on the well-known Parabolic SAR and Zigzag and a modified moving average is known as the VAR Moving Average, which is used to indicate whether the trend of an asset is reversing. As a filter, we use the RSI indicator.

Because it is a trading system based solely on technical indicators, it has mechanical entry and exit rules and it is quite simple to apply. Therefore, it does not require much interpretation.

As always, it is recommended to test this reversal trading system with a demo account before using it to trade with real money.

6 Steps to Create your own Forex Trading System

by rcanessa

The main objective of this article is to guide you through the process of developing your own trading system to trade in Forex.

Although devising a system may not take too long, it can take a long time to prove its effectiveness. So, you must be patient, because in the long term a good Forex trading system can generate you a lot of money. Therefore, it is worth investing the necessary time to create, evaluate and implement a winning strategy, since a losing system can cause us a lot of losses in terms of time and money.

For this purpose, the following tips can help you in this process of development and evaluation.

Trading The Non-Farm Payroll Report (NFP)

by rcanessa

In this article we will show an interesting way to trade with the data of the Non-Farm Payrolls of the United States.

There was a time when trading with macro data was especially interesting. If the data deviated x% of what the market was waiting for, we could perform a trade expecting the price to have an interesting continuity. In fact, not only can you manually perform the trade, but there are interesting software that could execute the operation in hundredths of a second by clicking the buy or sell button of our broker just by programming it (like Expert Advisors in MT4).

However, after a well-known broker was about to go bankrupt, due to the problems caused by this type of operation, the matter gradually became more complicated. In this way, trading on economic data as soon as it comes out, is no longer a good business. Although demo can be interesting, I assure you that trading in those seconds after the data is released can be a drama. Do not try that at home. However, trading with macro data can be especially interesting with the necessary adjustments.

I will show you one that has been especially useful to me.

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