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Recommended timeframes M1
This strategy is based on Parabolic Sar and Commodities Channel Index indicators. That's an impulse
scalping strategy founded on the current price trend.
Tools: EURUSD, AUDUSD, GBPUSD.
ime-frames: M1, M5.
Indicators:
1. EMA50 on M1 time-frame
2. EMA21 on M5 time-frame
3. CCI (45).
4. Parabolic Sar (0.02, 0.2)
Long positions should be opened when the point of the Parabolic Sar indicator is located above the EMA's
line and the value of the CCI indicator is more than 100.
Short positions should be opened when the point of the Parabolic Sar indicator is located below the EMA's
line and the value of the CCI indicator is less than 100.
Exit point:
Target: EURUSD (7-12 points), AUDUSD (5-8 points), GBPUSD (7-15 points).
Stop Loss level should be placed at the EMA level.
Buy
Sell
Scalping system 10 points
Recommended timeframes M1
This trading strategy is used on the chart with the period M1. We add MACD Oscillator with the settings
(13, 26 and 9) and Stochastic Oscillator the settings (5, 3 and 3), which will be used as indicators. The best
time periods for trading with the use of this strategy is European and American sessions. It is preferable to
choose currency pairs with the medium or high volatility (currency pair of the Major group are quite
suitable).
After adjusting the chart and adding required indicators, follow the instructions below to open trading
positions:
The following conditions can be used as a signal for opening long positions:
- the lines of MACD histogram are in the positive zone above the zero level;
- after the decline below the level 20, Stochastic Oscillator (the line % or %D) has risen above this level.
Stop loss is set at the distance of one point below the nearest local high.
Take profit is set at the level of 10 points from the opening price.
Fig. 1
A candlestick, which is marked on the chart with the period M1 meets the requirements for opening long
positions (Fig1).
The following conditions can be used as a signal for opening short positions:
- the lines of MACD histogram are in the negative zone below the zero level;
- after the rise above the level 80 in the overbought zone, Stochastic Oscillator (the line % or %D) fell
below this level.
Stop loss is set at the distance of one point above the nearest local high.
Take profit is set at the level of 10 points from the opening price.
Fig. 2
A candlestick, which is marked on the chart with the period M1 meets the requirements for opening short
positions (Fig2).
Strategy with the use of Bollinger Bands indicator for the currency pair GBP/JPY
Recommended timeframes M1
This strategy is based on the use of the technical indicator Bollinger bands with different periods of
deviation in the settings on the chart with the period M1 for the currency pair GBP/JPY. The best trading
time period with the use of this strategy is London, European or American session. Choose deviation of 2, 3
and 4 for each band in the settings of the indicator.
As soon as the chart is set for the trading position, we will follow the following instructions:
The conditions described below and shown on Fig.1 will act as a signal to open long positions (Fig 1):
- The price has reached the bottom line of the indicator with the deviation 2 (red line of the indicator on
the fig.), or the price is traded between the lines of the indicator with the deviation of 2 and 3 (red and blue
lines on the fig.)
Stop Loss is set 2 points below the nearest low of price or upon your own discretion.
Take Profit is set 15 points above the opening price or upon your own discretion.
Fig.1 On the chart with the period M1 marked signals for opening long positions satisfy the conditions of the
trading strategy
The conditions described below and shown on Fig.2 will act as a signal to open short positions (Fig 2):
- The price has reached the upper line of the indicator with the deviation 2 (red line of the indicator on the
fig.), or the price is traded between the upper lines of the indicator with the deviation of 2 and 3 (red and
blue lines on the fig.)
Stop Loss is set 2 points above the nearest high of price or upon your own discretion.
Take Profit is set 15 points below the opening price or upon your own discretion.
Fig.1 On the chart with the period M1 marked signals for opening short positions satisfy the conditions of
the trading strategy
Strategy based on news
Recommended timeframes M1
This article will describe a simple but effective strategy based on the most important macro-economic
news. For this strategy we will use pending orders Buy Stop and Sell Stop, where Stop Loss will be placed at
the short distance from the opening price level, while Take Profit - at the long distance from the opening
price; or orders can be closed manually.
The key factor of placing an order is the choice of the news, which will cause the strongest momentum in
the market. The most important news are subdivided into the following information groups
Non-farmPayrolls
Industrial Production
PPI
GDP
CPI
Unemployment
Consumer Confidence
Money Supply
Harmonized Index Customer Price (UK and Europe)
Trade Balance
Retail Sales
Current Account
Tankan
ISM (USA), PMI (Eurozone), CIPS (UK)
Michigan Sentiment Index
Beige Book
Chicago PMI Index
For this strategy we can choose those major pairs, for which the news will have the strongest impact,
triggering the highest movement in one of these pairs: EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD and
NZDUSD.
We shall compare the time in the news calendar with the time of the trade terms.
Next steps to follow: use timeframe M1 or M5.
2-3 minutes prior to the moment of issuing the news, place pending orders Buy Stop and Sell Stop at the
distance of the previous high and low of the price for the last 10-15 minutes; however they should not be
closer than 8 points from the current level of price. In order to minimize losses it is recommended to Stop
Loss at the level of 3-4 spreads from the current price of the currency pair. It is also advisable to place Take
Profit either at the level of 80-90 points or do not place it at all, but just follow the price movement.
The order will be activated at the moment of issuing the news; if the price does not reach Stop Loss, moving
in the favorable direction, we shall move stop-loss in the direction of the leap.
Scalping strategy with EMA
Recommended timeframes M1
Instruments: major Forex instruments with low spread such as EUR/USD, GBP/USD, AUD/USD, USD/CAD.
The number of instruments could vary and should be chosen depending on the spread offered by your
broker.
Timeframes: M1, M5.
There are three groups of indicators that are used in the strategy:
1. EMA with periods 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 (pink colour);
2. EMA with periods 17, 19, 21, 23, 25, 27, 29, 31, 33, 35, 37, 39, 41 (blue colour);
3. EMA with periods 44, 47, 50, 53, 56, 59, 62, 65, 68, 71, 74 (green colour).
This simple strategy is based on rather strong signals of entry and exit points from the market. Two
oscillators: CCI and MACD in one window are used in this strategy. The best results are achieved with the
use of timeframes from M1 to H1.
Pic. 1
How to open a SELL position (Pic. 2)
Open a sell position when the CCI red line crosses up the line-100 and the MACD indicator is below the
demarcation line 0. Close the position when the CCI line returns to the level -100 or crosses the MACD line.
Pic. 2
For carrying out a transaction you shall watch over terminal tracing the readings of the indicators, since this
option does not provide for a function of placing stop-loss or profit taking orders.
Strategy 3 candlesticks High-Low
Recommended timeframes M5
This trading strategy is designed to work with CFD; however, we are going to apply it to the contract for
difference on shares of American International Group, Inc. (instrument AIG). For this strategy it is
preferable to choose time when the market is the most active; the best time to start trading is the moment
of opening of the American session.
Fig 1
An example of opening a buy position is given on the figure 2:
Strategy Cutting Points
Recommended timeframes M5
We offer for your consideration one of the speculative strategies on the Forex market. This is a scalping
strategy and it is recommended to be used on the calm market when the price chart is moving in a
sideways channel. It is also worth noting that low spread and fast order execution are also necessary
conditions for the strategy to work.
Instruments: major instruments with low spread such as EUR/USD, GBP/USD, AUD/USD, USD/CAD
(instruments may vary depending on the spread offered by your broker).
Timeframe: M5.
Indicators used:
1. Bollinger Bands (20, 2);
2. ADX (14 period);
3. RSI (7 period).
When to buy:
When to exit:
1. TP on the middle MA of Bollinger Bands;
2. Quick TP 3-5 points away from the opening level;
3. SL 3 points above/below the lower/upper MA of Bollinger Bands.
It is not recommended to trade 30 mins prior to macroeconomic news releases. The condition that the RSI
> 70 or < 30 is not compulsory. The most important in this strategy is to determine the right moment for
trading when the price remains in the sideway range.
Strategy "ADX and Momentum"
Recommended timeframes M5
This is a classic trend-following strategy based on the ADX and Momentum indicators. The strategy is very
easy to understand and will suit experienced as well as novice traders.
Instruments: major pairs such as EUR/USD, GBP/USD, AUD/USD, USD/CAD.
Timeframe: M5.
Indicators used:
1. ADX (D+ and D- with the level of 25);
2. Momentum (14);
3. ParabolicSar (0.2-0.02).
When to buy:
When to exit:
1. Stop-loss is 5-7 points away from the opening level;
2. Take profit is points 14-16 away from the opening level
As an additional filter, the EMA55 can be used. Thus, buy when the price is above the EMA55 and sell when
the price is below the EMA55.
Scalping strategy with CCI
Recommended timeframes M5
Indicators:
200 CCI,
10 EMA (red)
21 EMA (blue),
50 EMA (green),
Pivot Levels.
When to exit:
Take Profit: at Pivot levels or after the 10 EMA and 21 EMA cross each other in the opposite direction.
Stop-loss: 12-15 points.
Buy:
Sell:
Heiken Ashi + ADX + Stochasti trading strategy
Recommended timeframes M5
Indicators:
Heiken Ashi.
Stochastic (5, 3, 3),
ADX (14).
When to exit.
Take Profit: 10-15 points. Stop-loss: 5-10 points. Close long positions after a 15 points rise in the price.
Close short positions after a 15 points fall in the price.
Strategy "The Range"
Recommended timeframes M15
This strategy is based on the readings of 4 moving averages and RSI, which allows us to have a powerful
signal about a start of a trend and follow it. In essence, the strategy suits best for intraday trading, but a
position may remain opened for a few days if the trend is powerful enough.
Recommended time-frames: 15, 30, 1. When using the M15 time-frame, you'd better not keep your
positions opened overnight or enter the market as there will be more false signals.
Trading system configuration:
1. 16- and 30-period red EMAs
2. 12-period green WMA
3. 5-period black WMA
4. 19-period RSI with a line at 50.
Two red moving averages form a range that signals about the start and the end of the trend line. Two
weighted averages indicate market entry and exit points. A position should be opened when the range is
narrow or when its borders intersect.
Buy
Open a trade once 5- and 12-period WMAs have intersected the range formed by the red moving averages
from below. If the 5-period WMA crossed the red lines long before this moment, we have a powerful signal
to buy.
A trade should be closed once the 5-period black WMA has crossed the red moving average.
Sell
Open a trade once both WMAs have crossed the range formed by the red EMAs from above. If the 5-period
WMA crossed the red lines long before this moment, we have a powerful signal to sell. At the same time,
RSI must be located below the line at 50.
A trade should be closed once the 5-period black WMA has crossed the red moving average.
Also, a trade should be closed if the range borders and red MAs have intersected or become too narrow:
it's a signal about a trend reversal.
Strategy based on BB, MACD, MA indicators
Recommended timeframes M15
The strategy described below is quite a simple strategy based on indicators. Three simple indicators
installed in all standard MT4 terminals underlie this strategy. It is applicable to all major currency pairs,
such as EUR/USD, GBP/USD, AUD/USD, CAD/USD, NZD/USD, and USD/JPY. The time-frame used: M15.
Underlying indicators:
1. Bollinger bands (Period 20, Shift 0, Deviation 2)
2. Smoothed moving average (Period 2, Shift 0)
3. MACD indicator (Fast EMA 11, Slow EMA 27, MACD SMA 4)
1. The moving average (displayed in orange in the pictures) crosses from below the middle line of
Bollinger Bands (displayed in green).
2. The MACD histogram is below the line.
Conditions for opening Sell trades:
1. The moving average (displayed in orange in the pictures) crosses from above the middle line of
Bollinger Bands (displayed in green).
2. The MACD histogram is above the line.
This strategy is a variation of reversion strategies based on the "Bollinger Bands" indicator. The strategy is
easy to master and uses a technical indicator pre-installed in any MT4 terminal. Therefore, standard
instruments are all that a trader needs. The strategy is applicable to all currency pairs, such as EUR/USD,
GBP/USD, AUD/USD, CAD/USD, NZD/USD, and USD/JPY. All popular time-frames may be applied: M15,
M30, H1, H4, and D1.
Indicators used:
1. Bollinger Bands (Period 20, Shift 0, Deviation 2) - the green lines on the chart
2. Bollinger Bands (Period 20, Shift 0, Deviation 2) - the orange lines on the chart
This strategy is easy to use, so it can help every beginner to perceive the market, get an understanding of
the overbought and oversold zones and learn to deal with them.
Indicators:
ATR (30) (Average True Range) with EMA 5 (5-period Exponential Moving Average )
ATR (14) (Average True Range) with EMA 4 (4-period Exponential Moving Average)
30 SMA High
30 SMA Low
Open long positions when the price has crossed both moving averages from below and ATR (30)>EMA5.
Open short positions: when the price has crossed both moving averages from above and ATR (30) > EMA5.
Stop Loss
When going long, place Stop Loss at the level of 30 SMA Low; when going short - at the level of 30 SMA
High.
Closing of trades
Close a trade if ATR (14) <EMA 4 or place Take Profit whose value will be 3 times more than the value of
Stop Loss.
Strategy "Alligator"
Recommended timeframes M15
This strategy is applicable to any currency pairs and based on a simple trend following principle "buy/sell".
To define entry and exit points, the standard Alligator indicator and 144-period Simple Moving Average
(SMA) are used. The chart time-frame is to be set at M15, but longer periods are admissible too.
The following rules should be respected when defining entry and exit points.
Pic. 1 In the picture we can see a chart on the M15 time-frame with the indication of entry and exit points
for a long position.
SELL trades shall be opened under the following conditions:
- the price is located below the SMA (144) (indication of a bearish trend)
- the green line of the Alligator indicator has crossed the red and blue lines from above.
- the red line of the Alligator indicator has crossed the blue line from above.
Stop Loss is to be placed 1 point higher than SMA 144 (all the time).
Short positions are to be closed once the green line of the Alligator indicator has crossed the red line from
below (indication of the trend reversal).
Pic. 2 In the picture we can see a chart on the M15 time-frame with the indication of entry and exit points
for a short position.
Strategy Momentum Forex Trading
Recommended timeframes M15
Instruments: All.
Timeframes: M15 and above.
Trading hours: London and New York trading sessions.
Indicators:
SMA 21 (simple moving average with the period 21),
SMA 11 (simple moving average with the period 11),
Momentum 30,
RSI 14.
Exit points:
Buy transaction shall be closed when RSI enters the overbought zone. Sell transaction shall be closed when
the indicator enters the oversold zone.
Strategy "Bollinger Bands and RSI
Recommended timeframes M15
Tools: any
Time frames: M15, M30
Indicators: RSI (11), Bollinger Bands (20;2)
Conditions for "buy" trades: the RSI value must be over 70 and the current price must be above the higher
Bollinger band.
Conditions for "sell" trades: the RSI value must be below 30 and the current price must be below the lower
Bollinger band.
Exit:
M15: EURUSD 15 points, GBPUSD 19 points.
M30: EURUSD 19 points, GBPUSD 25 points.
Stop Loss shall be placed 10 points higher or lower than the entry point.
Strategy Range GBP/JPY
Recommended timeframes M15
This strategy is based on trading at night time by way of placing pending orders. Therefore, this strategy
does not take too much time of a trader. You will need to know closing time of the American session and
opening time of the Asian session. Use the time indicated in your trading terminal. In the example below,
the terminal shows server time of the Company: GTM+2. In this case closing time of the American session
will be at 23:00, opening time of the Asian session is 2:00 terminal time.
In order to place an order we need to construct a rectangle in which horizontal lines will be the highs and
lows of the limited time period, while 23:00 and 02:00 will be shown as the vertical lines.
As soon as the rectangle is formed, it is necessary to place a pending order Sell Stop 2 points below the
lows and a pending order Buy Stop 2 points above the highs. Stop loss of each order will be at the distance
of the flat, which is the opening price of the opposite pending order. Take profit should be set at the
distance two times bigger than the distance to the stop-loss. Thus, we will comply with the rules of money
management.
After placing the orders and getting profit, it is preferable to place at least 10-15 points of stop-loss in the
breakeven zone.
After activation of one of the orders, the second order shall be also removed.
In case the range of the flat is over 70 points then, it is better not to trade on this day; it is also
recommended to refrain from trading if neither of the orders has been activated within 4 hours after
placing the orders.
If a transaction has not been closed with the help of stop-loss or take profit before the opening of the
American session, if should be closed at the current price.
Strategy Speculative
Recommended timeframes M15
In this strategy we will use two standard indicators to obtain the trading signals to buy or to sell.
Zigzag: we use standard settings, changing the Depth to 100.
RSI: settings remain unchanged with the period 14.
Timeframe: 15.
It is worth remembering: in case of S/L, we shall not open positions in this direction but wait for the
opposite signal, that is: if after the buy transaction the price goes down up to the Stop Loss, we will not
open any buy positions but will wait for the signal to sell.
Short positions can be opened when the indicator Zigzag reaches the upper point of the candlestick or
HIGH, while RSI will be in the overbought zone or above 70 (fig. 1).
Fig. 1
Long positions can be opened when the indicator Zigzag reaches the lowest point of the candlestick or the
LOW, while RSI will be in the oversold zone or below 30 (fig.2).
Fig. 2
Breaking of the Double Volatility Channel strategy
Recommended timeframes M15
Indicators:
1. RSI (11) Levels (35, 65);
2. 20 SMA High;
3. 20 SMA Low;
4. 5 SMA High;
5. 5 SMA Low.
Stop-loss: When opening long positions, stop-loss is placed at the level of 5 SMA Low. For short positions,
stop-loss is placed at 5 SMA High.
When to exit: For long positions, take profits when the RSI (11) falls below 65. For short positions, take
profits when the RSI (11) rises above 35.
Strategy "Intraday trading"
Recommended timeframes M30
This strategy is based on the use of two indicators: Williams Percent Range and Zig Zag. Trading operations
are usually carried out within a day.
Short positions should be opened when the indicator Williams Percent Range approaches the zero level,
while the Zig Zag reaches the higher price value, which will be the reversal and the signal to sell (Fig. 1).
Fig. 1
Long positions should be opened when the indicator Williams Percent Range approaches the level of (-100),
while the Zig Zag reaches the lower price value, which will be the reversal and the signal to buy (Fig. 2).
Fig. 2
Strategy Trading system CCI and EMA
Recommended timeframes M30
Instruments: All
Timeframes: M30 and above
Indicators:
EMA with the period 8;
EMA with the period 28;
Commodity Channel Index CCI with the period 30
Stop Loss:
For long positions: 20 points below the entry point.
For short positions: 10 points above the entry point.
Take profit:
Generally, it is at 50 points; it is also recommended to exit upon reaching the levels of support/resistance.
Strategy based on support and resistance levels
Recommended timeframes M30
This strategy implies the use of the DailyPivot_Ind2 indicator that helps us find the main support or
resistance level. The levels will be drawn automatically. The indicator is easy to find on the internet at no
cost.
The following currency pairs are recommended in this strategy: EURUSD or GBPUSD.
Period: M30.
Stop Loss: 20 points
Take Profit: 35 points
The Shift Hours parameter should be set at 3.
Open long positions once the price has broken the blue line or the resistance level from below, as shown in
pic.1
Pic. 1
Open short positions once the price has broken the blue line or the resistance level from above, as shown
in pic.2
Pic. 2
Strategy Parabolic SAR & Awesome
Recommended timeframes M30
Indicators:
Parabolic SAR (0.01, 0.1);
EMA 5;
Awesome oscillator.
Fig. 1
Conditions required for placing sell transactions (Fig. 2):
Parabolic SAR is above the current price, Awesome Oscillator gives red and is located below 0; EMA is
above the current price.
Fig. 2
Trading strategy with the use of support and resistance levels and the indicator MACD can be used for all
currency pairs.
Recommended timeframe H1.
The settings for MACD indicator are as follows: fast EMA 12, slow EMA 26 and MACD SMA 9.
First of all, we construct support and resistance levels for the selected currency pair on the chart. A
transaction can be opened after breakdown of the support or the resistance level provided that the
candlestick opens either above or below the level of support/resistance. If a candlestick opens above
resistance level, we open a buy transaction and likewise, when the candlestick opens below support level,
we open a sell position.
Fig. 1
Oscillator MACD is used to confirm a buy/sell signal. We shall trace the directivity of the lines of MACD
oscillator. If, at the time when the price breaks down resistance level at least two line of MACD histogram
will be directed upwards, we will get a buy signal and on the contrary, if at the time when the price breaks
down support level, at least two lines of the histogram will direct downwards, it gives us a sell signal.
The fig.2 clearly shows the entry point for the buy position in accordance the described conditions.
Strategy with the use of EMA and Awesome Oscillator
Recommended timeframes H1
This is a simple strategy with the use of two indicators, which can be applied for any currency pair on the
chart with the periods H1 or above. The basic concept of this strategy is to buy in the upward trend and sell
in the downtrend with the minimal risk.
Fig. 1 On the chart with the period H1: highlighted candlestick meets the conditions for opening long
positions.
Sell transactions can be carried out under the following conditions:
- the price is below EMA 200 (downtrend signal);
- Histogram lines of the Awesome Oscillator are red and below the zero line in the negative zone.
Stop Loss is set at the distance of 5 points higher than the previous swing high. Take profit is set at the
distance, equal to the distance from Stop Loss to the current price in points, or it can be set at your own
discretion.
Fig. 2 On the chart with the period H1: highlighted candlestick meets the conditions for opening short
positions.
Strategy "MACD trend trading"
Recommended timeframes H1
Time-frame: 30 or 1
Currency pairs: GBPUSD, AUDUSD, EURUSD.
Parameters:
Moving Average 1: period 85, MA method - Linear Weighted, Apply to Low, Style (colour) red.
Moving Average 2: period 75, MA method - Linear Weighted, Apply to Low, Style (colour) red.
Moving Average 3: period 5, MA method - Linear Weighted, Apply to Low, Style (colour) yellow.
MACD indicator: Fast 15, slow - 26, MACD SMA - 1.
This is a very easy trading strategy, which helps to determine strong entry points to the market. In order to
use this strategy we will need only two indicators: Parabolic SAR and Moving Average.
This strategy is applicable on the hourly chart for the currency pairs EUR/USD and GBP/USD.
Fig. 1
It is required to close position either when Parabolic SAR shows the first point below the candlestick, or if
the fast EMA6 is crossed by a slower EMA 11 (fig.1). It will allow us to isolate the noise of the market and
turn market movement in our direction; however, at the same time, potential risks at the price reversal will
also increase.
Opening of a buy position
The first signal is the intersection of three moving average lines, when the faster EMA will be above the
lower lines, which is the indication of the beginning of uptrend.
The second signal is the layout of the point of the indicator Parabolic SAR below the candlestick; the
previous position of the indicator was the reverse (Fig. 2).
Fig. 2
The combination of these two indicators gives good results. Also note that it is very easy to work with these
indicators. However, at the same time you should be present at the trading terminal, monitoring the
movement of the indicators, as it is not advisable to place take profit or stop loss.
Strategy with the use of the indicators Ichimoku and Awesome Oscillator
Recommended timeframes H1
This trading strategy gives a chance to gain profit when you open a position at the price reversal. The
reversal is determined with the help of the indicators Ichimoku Kinko Hyo and Awesome Oscillator. This
strategy works for all currency pairs. Choose H1 or a longer period as a timeframe.
After adjusting a chart and adding the required indicators for opening a trading positions, follow the
instructions below:
A signal for opening long positions will be the situation on the chart, which meets the following
conditions:
- the candlestick has closed above the line Senkou Span B of the indicator Ichimoku Kinko Hyo;
- histogram of Awesome oscillator is of the green color and is located above the zero level.
Buy transaction shall be conducted at the opening of the next candlestick after the fulfillment of the
following conditions:
Stop Loss is set 5 points lower than the nearest support level (swing low).
Take Profit is set at the distance, which is equal to the distance from the current price to Stop Loss, or at
the level of the nearest resistance level (swing low).
Fig. 1 The marked candlestick on the chart with the period H1 meets all requirements for opening long
positions.
A signal for opening short positions is the situation on the chart, which meets the following conditions:
- the candlestick has closed below the line Senkou Span B of the indicator Ichimoku Kinko Hyo;
- histogram of Awesome oscillator is of the red color and is located below the zero level.
Sell transaction shall be conducted at the opening of the next candlestick after the fulfillment of the
following conditions:
Stop Loss is set 5 points higher than the nearest resistance level (swing high).
Take Profit is set at the distance, which is equal to the distance from the current price to Stop Loss, or at
the level of the nearest support level (swing low).
Fig. 2 The marked candlestick on the chart with the period H1 meets all requirements for opening short
positions.
Strategy for trading in the flat market
Recommended timeframes H1
The strategy described below offers an easy and reliable method of earning money at the time when the
market moves sideways (flat market). Only two standard indicators are required for this strategy: moving
average lines and Bollinger bands. The advantage of this strategy is its absolute versatility, as it can be
applied to all trading instruments with the use of the time intervals above M30. The best results with the
use of this strategy can be achieved at the chart H1 with the major currency pairs.
Fig. 1
1. Bollinger bands are narrowing (the price oscillates in the horizontal range and trend is not clearly
determined.)
2. The price chart bounces from one of two bottom lines of the Bollinger bands (we do not consider
the bounces of the band that are the closest to the middle line.)
3. Conclude a buy transaction at the moment when the orange line crosses the red line from bottom
to top.
4. The best scenario is the situation when the price chart two times bounces from one of the lines
(see a figure above).
Conditions required for a sell transactions (Fig.2):
Fig.2
1. Bollinger bands are narrowing (the price oscillates in the horizontal range and trend is not clearly
determined.)
2. The price chart bounces from one of two upper lines of the Bollinger bands (we do not consider the
bounces of the bands that are the closest to the middle line.)
3. Conclude a sell transaction at the moment when the orange line crosses the red line from top to
bottom.
4. The best scenario is the situation when the price chart two times bounces from one of the lines
(see a figure above).
Intraday movement trailing is one of the simplest and most efficient market strategies that implies making
profits from an intraday movement, which is often the main and integral one.
It's based on placing Buy Stop and Sell Stop pending orders at the distance that is easily calculated and
depends on the volatility on the previous day. The recommended currency pairs are EURUSD, GBPUSD,
USDJPY, AUDUSD, USDCAD, and NZDUSD.
The Buy Stop pending orders shall be placed at the following level: the day before's market closure price
+40% of the day before's candle movement.
Sell Stop pending orders are placed the other way round: the day before's market closure price -40% of
the day before's candle movement.
Stop Loss is placed 40 points above the value of the pending order Sell Stop.
Pic. 1
Please consider a very important moment: once one of the orders has been activated, the second one shall
be deleted. Also, both orders shall be deleted if none of them triggered during the day.
After covering the distance of 50 points, Stop Loss should be switched to a "loss-free" mode and trailed
until it triggers, or you should fix profits at the closing of a session.
Strategy 100 EMA on two timeframes
Recommended timeframes H1
Instruments: All
Timeframes: M15 or H1
The indicator Accelerator Oscillator demonstrates best forecasting performance on the basis of the news
bulletins. This quality of the indicator will help us to make profit using the strategy described below. The
main idea of the strategy of three indicators is to grasp changes in trend and use this moment to earn
money. Three simple indicators will help us to do it: the first one, which have already mentioned,
is Accelerator Oscillator, the other two are Awesome Oscillator and Parabolic SAR. The best result can be
achieved on the chart with the timeframe H1. The strategy is recommended for trading major currency
pairs.
Used indicators:
1. Parabolic SAP (hereinafter PSAR);
2. Awesome Oscillator (hereinafter AO);
3. Accelerator Oscillator (hereinafter AC).
All three conditions shall take place on the same candlestick, which is further regarded as a signal one; the
transaction to buy should be concluded at the opening of the next candlestick.
Fig. 1
Stop Loss:
Set Stop Loss at the Low level of the signal candlestick.
All three conditions shall take place on the same candlestick, which is further regarded as a signal one; the
transaction to sell should be concluded at the opening of the next candlestick.
Fig.2
Stop Loss:
Set Stop Loss at the High level of the signal candlestick.
This strategy does not presuppose the use of any technical indicators on the chart. It is based on
assessment of the market in terms of psychology and behavior of the group of traders.
Recommended timeframe H1.
For example, if, moving in an uptrend, the price breaks down the previous high with a relatively high
volatility (ie a growing candlestick breaks down resistance level from the previous highs, and within an hour
or two, closes at the same level), we can open a sell position. It is because the traders usually place stop
orders above the local highs, preparing for the market reversal.
As soon as the price breaks down resistance level Sell-order will open. Later, take profit is placed, which
is equal to the height of the breakdown, ie to the distance from the resistance level to the highs of the
candlestick. (Fig.1).
Fig.1
Buy-order is placed if a trend is downward. (Fig.2). If an hourly candlestick breaks down the level of the
previous high and goes back to the same level within one or two hours, it is a signal of trend correction. Buy
positions can be opened from the level of the previous low, Take profit shall be equal to the height of the
breakdown (the distance from the support level to the low of the candlestick).
Fig.2
It is necessary to take into consideration the importance of economic news releases, as they can reverse
the market to any direction. SWAP is strictly prohibited. A serious disadvantage of this strategy is that it
requires continuous monitoring of the market conditions, as well as an open position.
Strategy Intelligent trading
Recommended timeframes H1
Strategies with the use of the indicators are popular trading systems, which are widely used by Forex
market traders. Quite often, these strategies are based on the use of 2 or 3 indicators, and a task of a
trader is to determine a point when all the indicators give identical signals for entering the market. A
strategy described below is based on the use of 5 indicators, which increases the accuracy of determining
an entry point and consequently, makes this strategy one of the most profit-making. The other advantage
of this strategy is its versatility, as it is applicable to all trading instruments. This strategy can be used on the
timeframes starting from M15.
Indicators to be used:
1. Moving Average (Period 8, Smoothed, HLC/3)
2. Moving Average (Period 18, Smoothed, HLC/3)
3. Parabolic SAR (0.026, 0.5)
4. Stochastic (12, 12, 5)
5. MACD (8, 21, 1)
Fig.1
Conditions required for closing of the transaction: Parabolic SAR has changed direction from upward to
downward.
Fig.2
Conditions required for opening of the transaction: Parabolic SAR has changed direction from downward
to upward.
Strategy EMA, Stochastic and RSI
Recommended timeframes H1
Instruments: All
Timeframes: All
Indicators:
EMA 5, EMA 10, Stochastic (14, 3, 3) and RSI (14, 70, 30)
Exit:
Crossing of the moving average lines in the reversed direction, or intersection of these lines by the indicator
RSI
Strategy Daily movement
Recommended timeframes H1
Considering short duration of time that you need to spend before the monitor, this strategy is very
convenient, because you can combine trading with any other occupation, since you do not need to monitor
the situation in the market all the time. This strategy can be also used along with the other trading
strategies.
The first requirement for entering the market is the existence of flat. This strategy is not recommended in
case of the trend movement
Then, we should place two pending orders Buy Stop and Sell Stop 15 points above and below the limits of
the channel, which is based on the lows and highs of the price movement from 22:00 of the previous day
till 8:00. Stop loss for the pending order to buy will be at the support level of the price channel. Stop loss for
the order to sell will be at the resistance level of the price channel. If the price does not reach any of the
orders by 15:00 GMT +2, the orders shall be cancelled; or set expiry time of the order when placing the
order.
Take profit shall be placed at distance twice as long as the distance to Stop loss, but should not exceed 100
points.
The disadvantage of this strategy is that the hours when you can enter the market are limited; therefore
the traders should be patient to open a position. On average, you can make 1-3 transactions a week with
the use of this strategy.
Strategy "Moving average lines and Parabolic SAR"
Recommended timeframes H1
Indicators:
Parabolic SAR (0.2, acceleration factor 0.02);
MA10, Exponential (Gold);
MA25, Exponential (Green);
MA50, Exponential (Red).
Enter into long positions when: EMA 10 crosses 25 and 50 from bottom to top and Parabolic SAR is below
the price level.
Enter into short positions when: EMA 10 crosses 25 and 50 from top to bottom and Parabolic SAR is above
the price level.
Stop-loss: Should be always slightly below 50.
Exit: when the price crosses all 10EMA on the chart (Fig. 1) the in the direction opposite to our transaction.
Strategy Night flat
Recommended timeframes H1
It should be noted that currency futures are correlated with the currency pairs; however, trading does not
take place in the futures markets, as they are also closed at this time. Therefore, the fluctuation during the
period between 22:00 and 2:00 is minimal and the price always tends to reach closing price of the futures.
Therefore, using this information, we can frame our trading strategy.
At 22:00 when futures market Pit is closed, you can place 8 pending orders: 4 of them should be Buy Limit
orders and 4 of them should be Sell limit orders at the distance of 15, 20, 30 and 35 respectively. Take
Profit is placed at the closing price level of the candlestick at 22:00. Stop-Loss is set at the distance of 50
points from the farthest pending orders. These will be Sell Limit 4 and Buy Limit 4 on the picture.
Strategy based on the indicators CCI and EMA
Recommended timeframes H1
Indicators:
Parabolic SAR (0.2, acceleration factor 0.02);
8 EMA (exponential moving average with the period 8);
28 EMA (exponential moving average with the period 28);
30 CCI (indicator Commodity Channel Index with the period 30);
Enter into short positions at the moment when EMA 8 crosses 28 from top to bottom and CCI is below
zero.
Enter into long positions at the moment when EMA 8 crosses 28 from bottom to top and I is above zero.
Stop-loss:
For the buy orders stop-loss shall be placed 5 points below the low candlestick, on which the
position has been opened.
For sell orders stop-loss shall be placed 5 points above the high candlestick, on which the position
has been opened.
Exit positions:
At the intersection of the moving average lines in the direction opposite to the opened transaction.
Strategy based on the highs and lows of the previous day
Recommended timeframes H1
Today we will take a look at the simple and efficient trading strategy based on building the levels of support
and resistance and on the highs and lows of the previous day. We will use pending orders Sell Limit and Buy
Limit with the close stop losses and with the relative strength indicator RSI with the period 5.
Currency pairs: GBPUSD, EURUSD, AUDUSD, NZDUSD, USDJPY and USDCAD
Time frame: H1
It is important that at the moment of the order activation, the RSI indicator shall be either in the oversell
zone, or just leaving this zone. If this condition is not met, Sell Limit order should be cancelled.
Fig. 1
Opening of the sell positions (Fig. 2)
Actions required for placing sell positions are similar to the actions described above, but in the opposite
direction.
Sometimes, when the trend is very strong and the price is approaching the level of Take Profit, Stop-Loss
can be placed at the distance of 20-30 points, if this allows us to gain high profit. However, in this case Take
Profit shall be deleted. You can perform these actions, if you are in front of your computer. A significant
advantage of this strategy is that you do not need to spend a lot of time at the computer. You can just
spend 5-10 minutes in the morning to place pending orders. You shall also pay attention to the important
macro-economic news, which can be released during the day.
Fig. 2
Strategy Base 150
Recommended timeframes H1
Indicators:
1. MA(6);
2. MA(35);
3. MA(150);
4. MA (365).
The point of the strategy is to spot early signs of a reverse and to open the position in the direction of a
breakout. In order to determine the breakout 2 slow MAs with 150 and 365 periods are used, and 2 fast
MAs with 6 and 25 periods are used to confirm a rebound.
For additional profit, a trailing stop option can be used that would allow to catch longer trends. Also, take
profit can be placed at important support and resistance levels.
CCI strategy
Recommended timeframes H1
Exit points should be placed 15-20 points away from the opening level (Take Profit) and 5 points away from
the opening level (Stop-loss).
EMA + Stochastic + RSI
Recommended timeframes H1
Open long positions when the 5EMA crosses the 10EMA from the bottom, Stochastic lines are directed up
and are not in the overbought zone, i.e. not above the 80 mark, and the RSI is above the 50 mark.
Open short positions when the 5EMA crosses the 10EMA from the top, stochastic is headed down but not
in the oversold zone, and the RSI is below the 50 mark.
Take profit:
Close long positions when Stochastic rises above the 70 mark. Close short positions when Stochastic falls
below the 30 mark.
Strategy Day-Hour
Recommended timeframes H4
This trading strategy is designed for the medium-term perspective. In order to enter the market it is
recommended to wait for the clear signals from all indicators on both timeframes. Take profit is advisable
at the level of 80-90 points. Stop-loss can be placed at the level of 50 points.
Open two charts for the same currency. On the first chart you should place timeframe H4 and on the other
timeframe D1. For this trading strategy we will the following indicators:
1) Moving Average with a shift equal to 3. This indicator is set on the four-hour and on the daily charts.
2) MACD with the parameters 12,120 and 5.This indicator is set on the chart H4.
3) RSI with the setting of the levels 30 and 70. This indicator is set on the chart H4.
Now, look at the chart with the timeframe D1. If the closing price of the previous daily candlestick is below
the moving average, we expect the decline in the exchange rate on the chart H4. If the closing price of the
previous daily candlestick was above the moving average, it is likely that the exchange rate will rise on the
chart H4. After determining the potential trend on the daily chart, we can open the chart with the
timeframe H4 and evaluate the readings of the indicators.
1) MACD. Histogram is above or below zero.
2) RSI. Upward or downward direction.
3) The candlestick is closed either below or above the moving average.
Pic.2
The second example
As an example we will use the charts AUD/USD D1 and AUD/USD H4.
Closing price of the previous daily candlestick is above the signal line. Lets consider the option of the rise in
the exchange rate. Open the chart AUD/USDH4. Closing price of the last candlestick of the previous day is
above the signal line, which is a confirmation of the uptrend. MACD histogram is in the negative zone, but
its volumes are rapidly decreasing, which shows buying activity and continuation of the uptrend. RSI is
directed upwards, but has not reached the overbought zone yet, which is a signal to buy (Pic. 3 and 4).
Pic.3
Pic.4
Strategy with the use of three moving average lines
Recommended timeframes H4
This simple strategy is based on the intersection of three moving average lines (SMA) and can be used for
all currency pairs on the chart with the period H1 or higher. It does not require constant monitoring of the
market; all you need is just to check the chart at the closing of each candlestick.
First of all, set three SMA indicators (Simple Moving Average) with the periods 13, 26 and 100 on the chart.
When making trading decisions, follow the rules below:
The order shall be closed upon intersection of the moving average lines with the periods 13 and 26 from
bottom to top.
This figure displays the chart with the timeframe H4 with two signals: one of them shows the entry point
for opening a sell transaction; the other shows the entry points for a buy transaction.
Strategy Follow the trend
Recommended timeframes H4
This strategy is quite simple and easy to use. If the risk management rules are observed, the strategy can
yield good profits: up to 200-300 points.
In order to define reversal points and entry points on the chart, it's necessary to use the ZigZag indicator.
The indicator's period must equal 150 to reduce the number of false signals. An 18-period moving average
will also serve as additional confirmation and a filter for opening trades.
This trading strategy applies to the following currency pairs: EUR/USD, GBP/USD.
Recommended time-frame: H4
Long positions should be opened once the ZigZag indicator has reached the lowest value of the candle and
the price has broken the 18-period moving average from below. Recommended Stop Loss and Take profit
levels amount to 50 points and 150-200 points, respectively.
Short positions should be opened once the ZigZag indicator has reached the highest value of the candle and
the price has broken the 18-period moving average from above. Recommended Stop Loss and Take profit
levels amount to 50 points and 150-200 points, respectively.
Strategy Two pairs of average +MACD
Recommended timeframes H4
Instruments: All
Timeframes: H4 or D1
Indicators:
1. MACD (12, 26 and 9).
2. EMA: 50,100
3. EMA: 5,15
Buy
Sell
Strategy Support/Resistance on the basis of 240 bars
Recommended timeframes H4
This strategy is designed for opening trading positions when the price reaches important levels of
resistance or support.
We recommend to use timeframe of not less than H4 for trading.
Levels of resistance and support will be calculated automatically on the basis of the bars and with the help
of the indicator ibsSF_TREND_LINES, which can be downloaded at the end of this article. The number of
bars can be changed; however keep in mind that their number should not be less than 200.
Trading pairs: EUR/USD or GBP/USD
It is important to maintain proper strategy of risk management, which means that, the ratio of risk - profit
should be 1 to 4. Therefore, if Stop-Loss is 20 points, it is recommended to set Take Profit at 80 points.
Sell positions should be opened at the moment when the price reaches resistance level, as shown on fig.
1.
Fig. 1
Buy positions should be opened at the moment when the price reaches support level, as shown on fig. 2
Fig. 2
This strategy is based on 2 standard indicators, which makes it incredibly easy to master. The principles
used are fundamental to trend trading. The strategy may be applied to any trading tools on any time-
frames. The best results may be reached with such currency pairs as EUR/USD, GBP/USD, AUD/USD,
CAD/USD, NZD/USD, USD/JPY on H1 and H4 time-frames.
Indicators used:
1. Bollinger Bands (Period 20, Shift 0, Deviation 3) - the green lines on the chart
2. EMA (Period 50, Shift 0) - the orange line on the chart.
Pic. 1
Pic. 2
1. The price chart is located below the orange line.
2. The price touches (or almost touches) the middle green line.
3. Open a short trade once the candle has broken out the LOW value of the previous candle.
Trading strategy Anti-trend is mainly used for trading world indices. Lets consider the example of its
application on FDAX.
In order to receive trading signals we will use the indicator Bulls with the following configuration: (13).
This indicator will help us to find reversal points and receive profit.
Take note of the important aspect: if we trade the index FDAX, we shall build additional levels on the
indicator. In such case support level will be (-229.6) and resistance level (260.5). When the price reaches
these levels we can conclude a buy or a sell transaction respectively.
Recommended timeframe: H4
Level of Take Profit: the target of 4500 points (optionally, you can set Stop Loss at the breakeven point and
wait for the stronger movement).
Take Profit:
H4 60 points for the pair EURUSD and 70 points for the pair GBPUSD.
D1 200 points for the pair EURUSD and 250 points for the pair GBPUSD.
Exit:
At the next reversal of the signal line of MACD indicator.
Strategy based on EMA, ADX and MACD
Recommended timeframes H4
Instruments: any
Time frames: H4, D1
Indicators:
4 EMA (an exponential moving average with the period of 4);
10 EMA ( an exponential moving average with the period of 10).
ADX (28) +DI and -DI
MACD (5,10,4)
Short positions should be opened when the 4 EMA is crossing the 10 EMA from below, and MACD is over
0. At the same time, +DI must be above DI.
Long positions should be opened when the 4 EMA is crossing the 10 EMA from above, and MACD is less
than 0. At the same time, -DI must be above +DI.
Exit points:
Take Profit for H4:
EUR/USD - 60 points, GBP/USD - 70 points, USD/CHF - 40 points
Take Profit for D1:
EUR/USD - 200 points, GBP/USD - 250 points, USD/CHF - 150 points
The purpose of this strategy is to demonstrate the power of Awesome indicator. For this strategy we use
two more indicators. Basically, they are needed to confirm the signals of the main indicator. The strategy
can be used for all major currency pairs on the timeframe above 4H.
Fig.1
Fig. 2
Instruments: All
Timeframe: M15 and above
Fig. 1
Sell when the price goes back below the upper line of the Bollinger bands, or at opening of the next
candlestick.
Fig. 2
Exit points should be placed 50-70 points away from the opening level (Take Profit) and 20 points away
from the opening level (Stop-loss).
Strategy "Three Candles"
Recommended timeframes H4
The strategy is used on the 4-hour timeframe only. Currency pairs that are recommended for trading are
GBP/USD or EUR/USD.
When to open long or short positions: after three consecutive ascending or descending candles have
formed.
The strategy, which we are going to describe below, is fairly simple and, above all things, amazingly safe.
Although the use of this strategy will not bring you overwhelming wealth, it will minimize your risks
and bring you not great, but steady income. The strategy is based on the use of two simple indicators,
which are installed in all standard terminals MT4. This strategy can be applied to all major currency pair,
such as EUR/USD, GBP/USD, AUD/USD, CAD/USD, NZD/USD and USD/JPY. A daily interval D1 is used as a
temporary interval.
1. A tail of the candlestick, which closes from the bottom, is three times the size of the candlestick
body (as a rule, the body of the candlestick is either very small or it does not exist at all); while the
upper tail is no more than half of the bottom tail.
2. The main line of the indicator ADX is above the level 20.
3. The line +DI (red on the chart) is above the line DI (blue on the chart) and above the level 20.
4. The line DI is below the level 20.
5. Buy transaction can be concluded at the opening of a new daily candlestick.
Conditions for concluding a Sell transaction:
1. A tail of the candlestick, which closes from the top, is three times the size of the candlestick body
(as a rule, the body of the candlestick is either very small or it does not exist at all); while the lower
tail is no more than half of the upper tail.
2. The main line of the indicator ADX is above the level 20.
3. The line -DI (blue on the chart) is above the line +DI (red on the chart) and above the level 20.
4. The line +DI is below the level 20.
5. Sell transaction can be concluded at the opening of a new daily candlestick.
This simple strategy is based on receiving signals from only two indicators, which are included in the
standard platform MT4 and are well suited for trading on the pair XAUUSD. Chart interval D1.
1. Set Bollinger bands with the period 20 on the chart.
2. Set Stochastic with the parameters: K Period -5, D Period -3, Slowing -3.
Take profit should be set at the level of the middle (central) line of the Bollinger bands, at which the
position has been located at the opening moment. Stop-loss is placed at the level, which is three times less
in relation to the level of the take profit.
Strategy Trading system MACD + ADX
Recommended timeframes D1
This strategy is based on the use of the indicators MACD and Average Directional Movement Index.
Instruments: EUR/USD, AUD/USD, GBP/USD.
Time frame: D1
Indicators:
1. MACD (3,9,16).
2. ADX (16).
Exit point:
Use Trailing Stop option, as it will help to lock in the maximum possible profit. The recommended value
of Trailing Stop is 40-70 points.
Strategy SMA 150 + Stochastic + RSI
Recommended timeframes D1
In this strategy we will use pending orders to trade currency in the Forex market.
Recommended instruments for trading: EUR/USD
In order to place pending orders we will use closing price of the previous day. From this price we will place
our pending orders: BUY STOP and SELL STOP at the distance of 32 points.
The level of Take Profit: 35 points
The level of Stop Loss: 28 points.
We can also roll over the position for the next day in order to receive more points. However, in this case we
should move Stop Loss into the break-even zone and do not place Take Profit.
Indicators:
1. 20 SMA Low;
2. 34 EMA;
3. ADX (13).
When to exit:
Positions are recommended to be closed when the moving averages cross each other. Take profit and stop-
loss can be placed at fixed intervals, take profit at 100-150 points from the opening level, and stop-loss
at 30-50 points.
Jarroo trading strategy
Recommended timeframes D1
PBT&CA=price breaks through & closes above the level the price breaks out and closes above.
PBT&CB=price breaks through & closes below the level the price breaks down and closes below.
Jarroo levels are determined as follows. First, we look for swings i.e. local lows and highs in price
movements. We then highlight those lows/highs that are made up of at least two candles with an identical
close/open. Note that in the strategy, levels are drawn through opens/closes.
Rules for entering and exiting
After the Jarroo level was broken through and the price has closed above (for buys) or below (for sales) this
level, a pending buy/sell order is placed. Stop-loss should be moved beyond the opposite point (Low or
High) of a candle where the breakthrough happened. If it appears too close to the opening point, it can be
moved beyond a High or Low of the previous candle.
To determine Take Profit we use the nearest support/resistance levels, a Stop-loss distance multiplied by 2
or 3, or shadows of previous candles. After reaching the closest target or a target that equals twice the
distance of Stop-loss, Trailing Stop is activated.
If the candle closes below/above the level (against our position) where we entered, do not wait for Stop-
loss to trigger and exit the position.
The DCC (Daily Close Confirmation) rule: For a more conservative position opening, the following rule can
be used. When a signal candle that had broken through the level has formed, we wait for the next candle
to close before placing a pending order.
Only after this next candle closes above/below the level without breaking it in the opposite direction, the
pending order is placed.