This system is taken from forex factory. I found it is good and simple. So I posted it here. Hope you could learn and get benefit from it.
Indicators Used:
-Bollinger Bars
-Stochastics
-MACD
These are the system rules. (This system works with either a trend up or trend down in a pair, but for the purposes of explaining this simply I will always use the example of an upward overall trend)
1. Identify Long-term trends for each pair you wish to trade (Using 1 day chart)
2. Idenfity Short-term trends for each pair you wish to trade (Using 1 hour or 30 mins chart)
3. If both the long term and the short term trend matchs, then that means this is an acceptable pair to trade with this system.
4. Using Bollinger Bars, identify entry points that trend against the pairs overall trend (Using a 15 - 5 min chart). Example: If the overall trend is up for a pair, watch for the price to drop below the lower bollinger band.
5. Confirm the entry point using Stochastics and MACD. Also wait at least one candle after you have identified the entry point, to make sure there is support.
6. Entry/Exit: This trade is usually only good for about 15 pips but if you found the right entry point you make them pretty quickly. Place a Stop (or trailing stop) at 15 pips below entry Point, and place a limit 15 pips above entry or at the middle Bollinger bar at the time of the trade.
Notes: At the begining of the day trading this system I would identify pairs that fit the system and just shuffle through them every 10 mins to watch for this. I have been able to catch about 2-4 trades a day with this, with about an 85% success rate.
-Bollinger Bars
-Stochastics
-MACD
These are the system rules. (This system works with either a trend up or trend down in a pair, but for the purposes of explaining this simply I will always use the example of an upward overall trend)
1. Identify Long-term trends for each pair you wish to trade (Using 1 day chart)
2. Idenfity Short-term trends for each pair you wish to trade (Using 1 hour or 30 mins chart)
3. If both the long term and the short term trend matchs, then that means this is an acceptable pair to trade with this system.
4. Using Bollinger Bars, identify entry points that trend against the pairs overall trend (Using a 15 - 5 min chart). Example: If the overall trend is up for a pair, watch for the price to drop below the lower bollinger band.
5. Confirm the entry point using Stochastics and MACD. Also wait at least one candle after you have identified the entry point, to make sure there is support.
6. Entry/Exit: This trade is usually only good for about 15 pips but if you found the right entry point you make them pretty quickly. Place a Stop (or trailing stop) at 15 pips below entry Point, and place a limit 15 pips above entry or at the middle Bollinger bar at the time of the trade.
Notes: At the begining of the day trading this system I would identify pairs that fit the system and just shuffle through them every 10 mins to watch for this. I have been able to catch about 2-4 trades a day with this, with about an 85% success rate.
I will keep searching and testing more simple forex trading system. Please note that All articles in this blog are for information purpose on;y. I did not take any responsibility for any lost might occurs.
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