Forex trading strategy (Basic balanced system)

Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA,
Stochastic (14, 3, 3), RSI (14, 70, 30)
Entry rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and Stochastic is not in overbought position (above the 80.00 level) and RSI is above 50.Entry rules: Sell when 5 EMA crosses below 10 EMA and Stochastic lines are heading south (down) and Stochastic is not in overbought position (above the 80.00 level), and RSI is below 50.
Exit rules: when 5 EMA and 10 EMA cross in the opposite direction or if RSI crosses the 50 mark again.
Advantages: allows filtering entries and thus is more accurate.
Disadvantages: 5 and 10 EMAs can give very early exit signals.

Complex trading system (Trend trading with EMAs)

Time frame: 1 day, 1 hour or 30 min.
Currency pair: any.
Indicators:80 EMA21 EMA13 EMA5 EMA3 EMARSI (21)
Trading rules:80 EMA suggests a major trend direction.When the price is traded above 80 EMA – uptrend, opposite for downtrend.
21 EMA and 13 EMA give a current trend direction.While 13 EMA stays above 21 EMA – uptrend, opposite for downtrend.
RSI (21) above 50 mark suggests an uptrend, below – downtrend.
Entries are made on a cross of 3 and 5 EMA in the direction of a trend:
Buy when 3 EMA crosses 5 EMA upward in an uptrend market AND both 3 and 5 EMA cross a channel of 13 and 21 EMA AND RSI is above 50.Entry with Sell order when 3 EMA crosses 5 EMA downward in a downtrend market AND both 3 and 5 EMA cross the 13 and 21 EMA AND RSI is below 50.
Note that additional entries are possible when 3 and 5 EMA cross back and then shortly after make a signalling cross again.
Note, that when we get the signal to enter we always wait for the current price bar to close and only then (if conditions nave not changed) - open a position.
Exit rules: when 13 EMA crosses 21 EMA back.Keep an eye on 80 EMA, also watch RSI 21 to cross 50 point mark again - both will suggest immediate exits.

Forex trading strategy (Stochastic lines crossover)

Currency pair: Any.

Time frame: Any.Indicator: Stochastic (14, 3, 3)
Entry rules: Buy when the faster moving Stochastic line crosses above and up over slower moving stochastic line.
Exit rules: Sell when the opposite situation (next crossover) occurs and right after that open an opposite position. It is again recommended, once the first touch of Stochastic lines (possible future crossover) has been spotted, to wait until the following price bar on the chart has closed and only then take actions.

Forex trading strategy (Parabolic SAR + ADX)

Any currency pair and time frame can be used.Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)
Entry rules: Sell When the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When the +DI line is above the -DI line, all Parabolic sell signals must be ignored.Entry rules: buy when the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the +DI line is below the -DI line, all Parabolic buy signals must be ignored.
Exit rules: when +DI line and -DI lines have crossed again.
Also the higher the ADX rising - the stronger the current trend is. If ADX has reached 25, the strong trend is in place.

Advantages: allows filtering entries and predicts good exits.

Disadvantages: Both Parabolic SAR and ADX are follow-up indicators. Although they complement each other very effectively, the most “weak” in chain is ADX, because during trading it can give one signal, but later change to the opposite. Once given a signal from ADX, waiting for the current price bar to close to avoid such misleading is advised.

Forex trading strategy (RSI High-Low)

Currency pair: Any.
Time frame: Any.
Indicator: RSI (14, 70, 30)
Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30.
Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70.
Exit rules: not set.
Advantages: RSI is a very good indicator to refer for confirmation for any entry in any simple or complex trading system. For current trading method it advices well on entries, but opportunities occur not that often.
Disadvantages: monitoring is needed, still false signals take place. Strategy is suggested to be used in combination with other ones.

Forex trading strategy (Simple MACD crossover)

We will need only MACD indicator with standard settings: 12, 26, 9.Any time frame as well as any currency pair can be used.
Entry rules: When the MACD lines’ crossover appears – enter (or wait for the price bar to close and then enter).

Exit rules: when MACD lines next crossover occurs.

Advantages: very simple approach and can give good profitable entries. Traders may want to change MACD default settings depending on the currency and chosen time frame. For example, traders may test next MACD set ups: USD/CHF MACD (04, 07, 16), EUR/USD MACD (02, 03, 20), GBP/USD MACD (02, 03, 04) for different time frames.
Disadvantages: you will need to sit and monitor it again and again. MACD has little use in sideways trading market. It is also never used alone, but rather in combination with other indicators.

Forex trading strategy (EUR/USD simple system)

Currency pair: EUR/USD.

Time frame: 30 min.

Indicators: MACD (12, 26, 9), Parabolic SAR default settings (0.02, 0.2)
Entry rules: When Parabolic SAR gives buy signal and MACD lines crossed upwards – buy.When Parabolic SAR gives sell signal and MACD lines crossed downwards – sell.

Exit rules: exit at the next MACD lines crossover or if the market starts trading sideways for some time.

Trading is like hunting!!

Trading is like going out hunting; you need to know the best times to hunt, you need to watch for sounds, look for footprints, notice of broken twig, factor in the wind direction, and so forth. You are always waiting for the best shot. Sometime you can come back with something, sometimes you don't.

If you don’t trade Forex, you work too hard!

Stay away from the people who belittle you. The truly great, will make you feel that you too, can become great.

Trading Rules

1. Initially set a goal 10 pips a day


2. Specialize in one currency pair


3. Keep a log


4. Sit on your hand unless you 'SEE' something concrete to do.


5. Don't buy too soon in a downtrend; don't sell too soon in an uptrend; currencies trend well.


6. Forget trading retracements when you catch the main trend.


7. Single versus multiple lots.


8. Learn, paper trade, demo, live.


9. If bias is to be short, think short - not long; if bias is to be long, think long; go one way or the other, but not both.


10. Currencies trend WELL! In uptrend,don't look to go short; in downtrend, don't look to go long.


11. Any one indocator like a hammer or spininng top may not be enough ammo to pull the trigger. Look around for more evidence of an impending shift in price direction.