Forex Trading Strategy #30 (T.N.T. Price explosion) more to come...

Submitted by Arsalan, our valued contributor.

Hello everyone,

I want to share one amazing strategy which is actually based only on price and it does not requires any indicator. I call this strategy T.N.T.
I read this strategy on a blog and i thought that i should share it with everyone over here.

Here's the strategy:

1) On a daily bar chart spot a price explosion i.e a + 140 pip day.

2) Next the day the market should move 70 pips in the direction of explosion.

3) If the second condition is fulfilled enter long if price explosion is on upside and enter short if price explosion is on downside but entry should be made only if at the same time the market is 30 pips above or below the high/low of previous day respectively other wise you should wait until the 30 pips condition is fulfilled.One thing which is important is that sometime you will have to enter a trade at more than a 70 pips move because of the 30 pips condition i mentioned above but it should never be more than 100 pips move.

4) Stop loss - 50 pips.

5) Target - 100 pips or 11.30 of the next day, whichever is reached first.

Forex trading strategy #29 (Stochastic + EMAs' cross)

Submitted by Arsalan

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I have developed a new strategy and it is based on stochastic and exponential moving average. Although it is very simple but it is very effective for short term trading.
The strategy is as follows.

Time frame - Daily.

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.

I have tried my best to keep this as simple as i can and i hope everyone will like this strategy.

Forex trading strategy #28 (Trending pairs breakout grid system)

Trending pairs breakout grid system from Claus

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I choose the most violent pair, GBP/USD. I put stop loss orders above and
below the current price at an interval of 20 pips again. Current price is
about 1.7800 so here is the grid:

buy stop loss 1.7820 1.7840 1.7860 1.7880 1.7900 1.7920 1.7940
sell stop loss 1.7780 1.7760 1.7740 1.7720 1.7700 1.7680 1.7660

Eventually the market will go far from the current price, towards either
north or south. If I have more than 2.45 times buys than sells or more than
2.45 times sells than buys, the grid is is profit. Since the orders are
canceling their opposites, margin is a very small issue here. Lost capital
is also small. Obviously, if you set the grid just before London opening
you have a very small probability to have to wait for a few days until you
are in profit.

Forex trading strategy #27 (Arsalan's ADX + MACD)

Submitted by Arsalan, our valued contributor.

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Hi Edward,

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.

Forex trading strategy #26 (Arsalan's ADX+EMAs cross system)

Hello everyone my name is Arsalan and before i proceed i want to thank Edward Revy and all the other people who have shared their amazing trading systems over here.
I have learnt many trading systems at this website which i use in my trading and they work very well for me. I have been using a strategy which gives me consistent profit so i would like to share that strategy with everyone over here. The strategy is as follows:

Time frame: Daily.

Indicators: 3 DAYS EXPONENTIAL MOVING AVERAGE.
10 DAYS EXPONENTIAL MOVING AVERAGE.
ADX (14)WITH +DI AND -DI.

BUY SETUP : +DI MUST BE ABOVE -DI .
BUY WHEN 3 DAYS EMA CROSSES 10 DAYS EMA FROM DOWNSIDE TO UPSIDE.

SELL SETUP: -DI MUST BE ABOVE +DI
SELL WHEN 3 DAYS EMA CROSSES 10 DAYS EMA FROM UPSIDE TO DOWNSIDE.

I use this strategy for trading stocks but i hope it will work for forex also because the systems mentioned here for forex trading works well for stock trading that's why i thought my system will work for forex as well. Please paper trade this strategy before you trade with real money.

Once again i want to thank you and please pardon me if i have made any mistake in this article.

Forex trading strategy #25 (H4 Bollinger Band Breakouts)

H4 Bollinger Band Breakouts

by Rpchost.com

Open the 4 hour chart and choose whatever currency you want.

Insert the Bollinger Band (20) indicator and be sure that its center line is appearing.

Identify 2 valid lower points OR 2 valid higher points in the Bollinger Band and drop a line from the first to the second line; it will be our break line.

Now when a candle closes above the break line issued from the higher points and in case the center line of the Bollinger band in the 1 hour chart crosses the break line then we have a LONG Trade.

If the candle in the 4 hours chart closes under the break line issued from the 2 lows points and in same time the center line of the Bollinger band crosses the break line in the 1 hour chart, then we are in a SHORT trade.

http://rpchost.com/

Forex trading strategy #24 (GBP/USD breakouts)

Credits to James Ayetemimowa - our valued contributor!

GBP/USD

when it is 1 hour to london open, draw lines on the highest high since midnite and lowest low since midnite, just trade the breakout and let ur stop loss be at the high of the candle that broke the low line for short trade and the low of the candle that broke the upper line for long trade

if u experience a breakout before New York Open, please target the first 30pips

f beyond New York Open before a break please target between 10 to 20 pips

Find other strategies by James at:
http://forex-strategies-revealed.com/4-candles-strategy

Happy Trading!!!

James Ayetemimowa
femjam78@yahoo.com

http://forex-strategies-revealed.com/

Forex trading strategy #22 (H4 Bollinger Band Strategy)

Current strategy was submitted by Joe Chalhoub.
Thanks Joe, and happy trading to everyone!

H4 Bollinger Band Strategy

Tools : Bollinger Bands(20)
TimeFrame : H4
Currency : ALL

This strategy is extremely simple and I use it to detect opportunities and it is very good.

If you open an H4 EUR/JPY chart and you insert the Bollinger Bands(20) indicator, if you observe the chart you will see that the bands are simply a Resistance and Support. The Upper band is a Resistance and the Lower Band is a Support. If you pay attention to the chart you will see that most of time the price hit the upper band then it retraces back to Lower Band, so how I trade is very easy, I wait till the price touches let’s say the upper band and closes under it (not above it) and wait till the candle is formed, when it finishes and the next candle opens under the previous Upper band then I enter a Short trade with target = 100 pips or until it touches the Lower Band. Same thing when it touches the Lower band and the candle closes above it, and the next candle opens above the previous Lower Band then I go Long with Target = Upper band or 100 pips. You can develop this strategy as I did, and you can profit a lot, I made more than 800 pips this month.

You can check my website for any further help http://rpchost.com . If you think in this technique and observe the chart I am sure you will develop this strategy quickly and make 99% winning trades.

H4 Bollinger Band Strategy (Part II)

Tools : Bollinger Band(20)
TimeFrame : H4
Currency : ANY

This strategy is a continuation of the previous strategy I submitted before (Forex trading strategy #22 ).

This strategy is very simple, and you can find more details at Rpchost.com forex forum.

First open a currency (per example EUR/USD) and H4 timeframe, issue suitable breaklines from the bollinger band (visual examples are at rpchost.com forex forum), now wait till a candle breaks the breakLine. This break is not a trade signal we must have an extra confirmation, here come the role of the bollinger band.

look at the bollinger band upper and lower, if they are both opened which means upper band is UP and lower band is DOWN, then it is a confimation of a trade.

Good Luck.

Joe Chalhoub

Profile : http://www.rpchost.com/profile.aspx
free forex signal : http://www.rpchost.com/freeforexsignal.aspx
Economic Calendar : http://www.rpchost.com/economic-calendar.aspx
forex forum : http://rpchost.gooboards.com/

Forex trading strategy #21 (Egudu EMA+ADX Strategy)

The following Forex strategy was submitted by Egudu - our valued contributor. Thank you once again and let the market be always on your side!

Hi, this is Egudu, and i have this simple but efficient strategy and i hope you enjoy using it.

Currency: any
Time frame: 1hr
Indicators: 5EMA(close), 6EMA(open), [ADX(14) at 20mark]

Rule: Enter a long position when the 5EMA crosses the 6EMA up and the width difference between them is a pip and the ADX must be over it's 20mark.

For those conservative traders, you could add 55EMA and 89EMA to know the trend and only enter a position according to the trend,that's enter long when the 55EMA is over the 89EMA and all other parameters are in place as i have stated above.

Additional Forex systems by Egudu can be found at:
http://forex-strategies-revealed.com/egudu-4-tools-trading
http://forex-strategies-revealed.com/trading-macd-consolidation

Forex trading strategy #20 (Trading MACD consolidation)

Current Forex strategy was submitted by Egudu - our valued contributor.

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I am egudu, and here's another strategy.

It's trading the MACD consolidation.
Time frame: 1hr
currency: any
indicator: MACD(12,26,9)

Entry: place a buy stop and a sell stop 5pips during the MACD consolidation with a stop loss of 10pips from entry and a profit target of 30-50pips.

Please note that, the MACD must be very close, in fact it should almost become a straight line only then should you enter the positions. l hope to give a picture shot of it soon, but u can check the chart of GBP on the 7th, 10th, 14th of Dec 2007 on the hourly chart.

Forex trading strategy #19 (Egudu simple 4 tools trading)

his Forex strategy was submitted by Egudu.

ok guys, here the strategy:

any currency
1hr,
7EMA(blue)
21EMA(red)
ADX(14)
MACD(12,26,9)

enter long once the 7EMA crosses 21EMA up and the ADX has passed it's 25 or 20mark and the MACD is trending up.the other way round is for short position. Note only enter a position once the ADX has passed it's 25mark.

Exit: exit any position once the 7EMA crosses the 21EMA. Also, the MACD should be looked at before entering a trade, when it's consolidating, you should stay away from the trade.

l am egudu.

Egudu,
Thank you from all our users and web team! Your contribution is greatly appreciated!

Edward Revy
http://forex-strategies-revealed.com/

Forex trading strategy #18 (Teodosi Moving Averages' tunnels)

This Forex system was submitted by Teodosi.

Thank you!
We value your great efforts to help us building this free Forex strategies resource
where traders all over the world can find answers about Forex and pick up ideas that
will improve their trading!

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"Hello guys i want to help all of you and i want to share you some good system.
Like many traders say good system is simple one an that`s why i`ll tell you one very simple.
This is......

- 1H (of 30MIN, but you will get more whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start of a rend and the end of a trend.

Long term

The 5 WMA & 12 WMA will show you when to enter a trend, they will also
help you to see the strength of the trends. Short term

Entry Signals
You should only open a position, when the red tunnel is extremely narrow or crossed!

LONG: 5 WMA & 12 WMA cross the red tunnel upwards.

If the 5 WMA also crosses the 12 WMA upwards, then the signal is extra strong.
RSI >50

SHORT: 5 WMA & 12 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 12 WMA downwards, then the signal is extra strong.
RSI<50

Exit Signals

Signals that show the end of the chosen trend
- Long: The price has reached a top and 5 WMA dives under 12 WMA
Close position

- Short: The price has reached a bottom and 5 WMA jumps above 12 WMA
Close position

Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one! This is a clear sign of a trend reversal.

After you see this, close your position and open a new position in the other way
(If you were long, close, open a short position)

When in a trade and the 5 WMA & 12 WMA cross the red tunnel ->
Pay attention! As long as the red tunnel boundaries doesn’t cross
eachother there is no problem, but often this is a sign that they will!"

Teodosi

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What else can we say? Well done, Teodosi!
Thank you from all our users for sharing the system!

Learn about another Simple system by Teodosi
at http://forex-strategies-revealed.com/teodosi-simple-system

Forex trading strategy #17 (Teodosi simple system)

This Forex system was sent us by Teodosi.

We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!

Thank you, Teodosi! Your contribution is greatly appreciated!

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"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.

This is my system.

I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...
I use Stoch and RSI just to define where it is possible to have a breakout.
Then I use most profitable tool I`ve ever tried - I use candlesticks.
If I have strong up trend and my Stoch and RSI are overbought, and we have
down trend candle (black candle) close at the middle of the last
(in this case white one) I enter my trade.

With this system I make more than 1500 pip only from GBP/JPY for week. I just use it for GBP/JPY.

Rules are this:

Sell when RSI and Stoch are bought or they are close to overbought (75)
line, and we have down candle which has closed at least at the middle of the last up
candle.

Buy when we have oversold RSI and Stoch and we have up candle which has closed
at the middle of the last down one.
;) very very very simple and very profitable system

Exit rules if we are in a sell trade and ... we have oversold RSI and Stoch
and we see this up candle which has closed at 50% of the last down one - exit and
enter another trade.

Like I said this very simple and very very profitable
system. O, and I put my stop lost at -100 pip.

I`ll be glad if you post it ... and want to see what folks will say about it ... :)"

Teodosi.
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Sure, we posted it!
Thank you and happy Forex trading!

Learn about another Simple system by Teodosi
at http://forex-strategies-revealed.com/teodosi-moving-averages-tunnels

Forex trading strategy #16 (Simple breakout System)

The idea behind this simple Forex trading system is to capture an early move of the price when it starts to establish its new direction/trend for the day.

As we know the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European session is the first major session for each coming day.

So, what do we do?

We start with 1 hour time frame, preferred pair - GBP/USD and no indicators.
The price range we are going to focus on is from 1:00 am EST to 2:00 am EST.
We look for the highest high and the lowest low of the price in that range and simply draw parallel horizontal lines through those extremes that will create a tunnel.

Now we are ready to move to a smaller time frame - 5 minute chart - and watch for the whole 5 min candle to close outside the tunnel which will provide a signal for us to enter with the open of the next candle.

We use a 20 pip stop OR the other side of the tunnel - whichever is less.

We are aiming at at least 20 pips profit. After that we have several options: lock the profit in, start "chasing" the price with a trailing stop by placing the stop just below the lowest low of the previous 5 min candle, or simply exit within the three consecutive hourly candles from the moment the trading order was filled.

Forex trading strategy #15 ("Key Simplicity")

Yes, one look - one hit. A trader can decide on his/her trading plans by a simple 1 second glance at the chart. It is a very simple Forex trading system that is a pleasure to use for traders with a busy schedule.

Strategy requirements:
Time frame: 1 day
Indicators: 5 EMA, 12 EMA, RSI 21
Currency: ANY

Entry rules: Buy when 5 EMA crosses up and over 12 EMA and RSI is above 50. Sell when 5 EMA crosses down and below 12 EMA and RSI is below 50.

Exit rules: exit when 5 and 12 EMA cross again or when RSI crosses back through 50.

Since it is a daily system the logic behind it can be described as simply following the daily trend. Because EMAs are lagging indicators they actually help us in this case.

The signalling EMAs' cross appears after a good pause which is just enough for the new trend (if any) to be established.

http://forex-strategies-revealed.com/

Forex trading strategy #14 (5x5 Simple system)

Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method. Trading strategies like this can only be discovered through a long and determined observation of the price behavior.

To start:
Currency: ANY
Time frame: 1 day
Indicators: 5 SMA, RSI 5

Entry rules: Buy when the price crosses over 5 SMA and makes + 10 pips up, the RSI must be over 50. Sell when the price crosses below the 5 SMA and makes +10 pips down, the RSI must be less than 50.

Exit rules: not set.

It is a very very simple system, yet with quite impressive results.

Always remember to take actions/enter the trade only after the signaling candle is closed.

This Strategy or trading idea can be used to create more advanced trading version.

Forex trading strategy #13 (Simple 1-2-3 swings)

And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.

A trading setup requires only an open chart and no restrictions for the currency or timing preferences.

Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below (drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.

Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the distance between point 2 and point 3 and project it on the chart for exit.

Additions: as an additional tool traders can use MACD (12, 26, 9). The rules for entry then will be next - let’s take a SELL order:

When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts “attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down). Once the price closes below the “pivot Line” – place Sell order.

Same chart: MACD (12, 26, 9) is added.

Advantages: gives 100% profitable entries.

Disadvantages: does not advise on exits.

http://forex-strategies-revealed.com/

Forex trading strategy #12 (Trend line tunnel)

Creating a support/resistance tunnel on the price congestion and trading on the break of this tunnel is a milestone of Forex trading discoveries.

This trading system/approach needs no indicators and can be applied to any currency and traded in any time frame where coiling in a tight range is spotted.

Entry rules: Find consolidation on the chart and draw two horizontal trend lines – support and resistance. Once the price breaks trough one of the trend lines and a current price bar closes outside the tunnel – buy/sell in the direction of the breakout. (If price pierces the trend line, but did not close outside the tunnel, cancel the previous trend line and draw another one according to the new conditions).

Note: also very often happens that once the price makes it through support or resistance it rocks down/up very quickly and so, more aggressive entry can also be adopted – without waiting for the current price bar to close.

Exit rules: not set, however, it is believed, that the price after breaking the tunnel will travel the distance equal to the width of that tunnel.

Advantages: very simple and extremely effective. It can provide 100% profitable entries if short profits are taken - usually with the close of the first candle right after the entry.

Disadvantages: very accurate and well thought entry point should be picked. Orders placed very close to the tunnel can be triggered by sudden whipsaw early before real breakthrough occur.

http://forex-strategies-revealed.com/

Forex trading strategy #11 (EUR/USD simple system)

As we move forward we discover a strategy that fits only chosen currency pairs.

Take a look at the next Forex trading 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.

Forex trading strategy #1 (Fast moving averages crossover)

Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this simple system.

Currency pairs: ANY
Time frame chart: 1 hour or 15 minute chart.
Indicators: 10 EMA, 25 EMA, 50 EMA.

Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules: option1: exit when 10 EMA crosses 25 EMA again.
option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).

Advantages: it is easy to use, and it gives very good results when the market is trending, during big price break-outs and big price moves.

Disadvantages: Fast moving average indicator is a follow-up indicator or it is also called lagging indicator, which means it does not predict the future market directions, but rather reflects current situation on the market. This characteristic makes it vulnerable. First, because it can change its signals any time, second – you need to watch it all the time, third - when market trades sideways (does not trending) with very little fluctuation in price it can give many false signals, so it is not suggested to use it during such period.

http://forex-strategies-revealed.com/