Simple Bollinger Band Day Trading Forex System

Simple Bollinger Band Day Trading Forex System

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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.

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.

 The Ed Ponsi Forex Playbook: Strategies and Trade Set-Ups (Wiley Trading)
How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (Wiley Trading)
 Currency Trading For Dummies

Simple  End of Day Trading System

How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (Wiley Trading)

This system work ! Trust me.Don't bother with all complicated and expensive forex system or software out there. You have to use your brain ! I prefer free easy Forex system like this one.This simple forex system can generates between 40-100 pips per week.A nice manual system. Just try it.

In the next few minutes you are going to learn 11 easy steps to make consistent money in the forex market. Before I go any further I am going to go ahead and tell you that with this system you are going to risk more than you are going to make on every trade. Most traders have the assumption that they are going to find a way to trade where they enter the market with a 20 pip stop and make a 200 pip gain. This simply is unlikely. While a trader may acheive those gains every now and then it is not profitable in the long run. But to be honest that is how most people trade and is exactly why we are going to do it backwards.

1: IT IS OK NOT TO TRADE. This is by far the most important rule for any method of trading. People feel that the market is moving and there is a profit to be made, but that’s not always the case. Do not trade unless the perfect trade has set up.

2: Never enter a market or limit order. I have no idea why people enter market orders and limit orders. With a market order you have about a 50/50 chance of guessing which way the market will go. With a limit order you are getting into a trade as the market is moving against you. Not a smart idea at all. Always enter the market with a stop order. This confirms that the trend you are trading is the correct trend. You will almost never pick a top or never pick a bottom.

3: The only pairs you need to know. The following are the only pairs to trade the Platinum System with because the offer the most volatility and are the most predictable. They are as follows: GBP/USD EUR/USD USD/JPY CAD/USD EUR/JPY AUD/USD

4: The 5:30 P.M. rule. Our trades are performed based on the high and low of the previous day. The Forex day starts at 5:00 p.m. EST and ends at 4:59 p.m. EST. Always wait until after 5:30 p.m. EST to place your trades.

5: The 100/25 rule. Find a pair from above that moved 100 pips or more the previous trading day, from high to low not from the opening price. However the pair must have closed at least 25 pips lower than the high or 25 pips higher that the low.

6: The actual trade. Place a buy stop 1 pip above the high and place a sell stop one pip below the previous days low. Look to make between 8-15 pips and risk around 35-60. I know this is hard to trade like this because one loss would wipe out several days of trading but trust me it really works. Never risk more than 5 times what you are going to make. I like to go for 10 pips and risk 35 pips. Place your orders along with the if then order with the stop loss and the targeted profit all at the same time. Or if your broker will let you place a stop order with a limit and a stop on it that is fine too. If you wish you can place your trade and walk away from your computer and come back the next morning to see that you have made money.

7: Key numbers: Do not get long on a trade above the last two numbers above 85 through 15 or short with the last two below 15 through 85. The whole numbers often time create great resistance and the market typically reaches them and turns around a couple of time before actually breaking through the whole numbers. The closer that the last two numbers are to being 50 the better off you will be with your trade.

8: 7.5% rule: Once you start actually trading this method you will actually be able to go on runs of 12-18 trades. People tend to start leveraging out their account to the max because of how accurate these trades actually are. Never risk more than 7.5% of your account on a single trade.

9: The morning ditch. If your trade has not been executed by 7:45 a.m. EST then cancel all open orders and wait until that evening for the next trade. Too much news and, non technical factors move the market way more than we need it too. I lost a lot of trades due to the fact that I left my order in as all the news from Wall Street was being released.

10: Do not bend these rules. These rules are here for a reason. Do not bend any of them. I have developed the rules to eliminate trades that have cost me money. I have made the mistakes for you, so that you don’t have to make them.

11: Again IT IS OK NOT TO TRADE: Please do not try to force a trade if there is not one there. I know it is hard not to be in the market, but its better than losing money. A good trade will set up soon enough. WAIT FOR IT.
 FXEducator - Forex Trading with Ed Ponsi 
Day Trading Stocks Forex and Options Course (Books Video and Audio) 

SIMPLE FOREX SYSTEM 200 EMA

Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading)

I would like to give one simple and effective forex system for you who are new to forex trading.
The most used Moving Average is EMA 200. Here I give some basic idea about how to use the EMA 200 for your Trading purpose.

1. Set three difference time interval chart : 4 hours, 1 hour and 5 minutes chart.
2. Add the EMA 200 on those each chart. Color it as you like.
3.Identify a currency pair that goes against the 200 EMA on the smaller time frame, the 15 minute chart.

Using the EUR/USD pair as an example, check where price is relative to the 200 EMA on the 4 hour, 1 hour, and 15 minute charts.Price is what we call ‘bucking the trend’ if it is well above the 200 EMA on the 4 hour and 1 hour charts but below it on the 15 minute chart.So price is temporarily going against the overall trend and is in a retracement mode.

You now need to look for a good entry point to get into the market in line with the basic principle of buying the dips in an up trend while selling the rallies in a down trend.

You would look out for a distinctive candle that would indicate possible price exhaustion as it bucks the trend on the 15 minute chart. The probability is it would soon resume moving in the direction of the trend.This simple exercise only takes a few minutes and can be done a few times during the day.

For more simple forex system,please check other strategy in this blog. I posted a simple forex system using EMA and Slow stochastic  on previous post. Stay tune for other forex articles and strategies.

Getting Started in Currency Trading: Winning in Today's Hottest Marketplace (Getting Started In.....)

Simple Forex with basic indicators

Hi all,

After a long time, I update the simple forex system in this blog. The following is a really basic and simple Forex system to determine trend and reversal. All indicators required are available freely on your chart. You can use any free chart from any broker or use the standard MT4.
7 Winning Strategies for Trading Forex: Real and Actionable Techniques for Profiting from the Currency Markets

Time interval : 1 hour or 4 hours
Indicator :
Exponential Moving Average ( EMA)  period : 5 Shift : 0 apply to : close
Exponential Moving Average ( EMA)  period : 10 Shift : 0  apply to : close
 (Set the color of the lines whatever you like).
 Slow stochastic with setting as follow :
%K Period:10
 %D Period: 5
Slowing: 5
Price Field : Close/Close
MA Method :
Exponential Fixed minimum : 0
Fixed Maximum : 100


Now is the system :
EMA 5 and EMA 10 cross are used to determined the current Trend while the Stochastic is to see whether the trend is strong or weak.(reversal) If the line is touching 80 the price might be rebounded and the trend might change.

-Always open position with the current trend. You can check time frame 1 hours,4 hours and 5 minutes. They all should indicate same trend. Use 15 minutes chart to execute your open.
- For TP and SL use the last higher high or higher low or fixed stop. You can use Pivot or Fibonacci. Just experiment with them. Don't be lazy. ;)

Check the picture out :
Picture

First 4 Forex : A Forex Course in Day Trading Analysis and Strategy Development to Increase Your Winning Probability

Simple Forex Trading System

How to Master Forex Trading

Amazing Simple Forex Strategy

" VERY POWERFULL SIMPLE FOREX SYSTEM"

7 Winning Strategies for Trading Forex: Real and Actionable Techniques for Profiting from the Currency Markets

Hi all,

I have been posted some simple forex system that I found very powerfull.
You can browse archieve files in this blog to get it.
Dont worry it is free ;)

I understand a forex system is not fit to everyone so I post several of them.
That is your job to give them a try so you can find which one is fit to your trading style and your risk tolerance.

On this post, I will give you another simple but powerfull system that will generate pips in your broker account.

So, read it carefully..


Amazing Strategy at a glance(with some changes) :

1 - Look at an economic calender and choose important news !
If you don't know where to look at, go to forex factory.
2 - Run your trading terminal 5 minutes before News time !
3 - 1 or 2 Min before news time set 2 pending order with following details :

BuyStop :

Price : Current Rate + 10 + spread
StopLoss : -10 pip
TakeProfit : + 20 pip

SellStop :

Price : Current Rate - 10
StopLoss : -10 pip
TakeProfit : + 20 pip

4 - Modify your orders with above details until news release .
5 - When one of your orders executed then cancel the other one .
6 - Now sit on your desk and get your profit .
7 - After 1 or 2 Min of news release if your orders didn't active then cancel them .


It's all thing you must do when you are trading with A.S .

Good Luck
Example 1 :
16 Nov 2006

We have US CPI today . it will be released at 13:30 GMT .

13:27 GBP/USD rate is at 1.8887 you must put 2 pending order now :

BuyStop : Price = 1.8899 StopLoss = 1.8889 TakeProfit = 1.8919
SellStop : Price = 1.8877 StopLoss = 1.8887 TakeProfit = 1.8857

OK , now you must modify your orders until 13:30 .

13:30 CPI released and your buy stop activated at 1.8899 and touched your target at 1.8919 so you got 20 pips in less than one min .

Now you can cancel your Sell Stop and go to drink coffee

Stay tune at our Free Simple Forex System blog for another forex system.

A Simple News Trade

THE SIMPLEST FOREX TRADING SYSTEM YOU CAN APPLY IMMEDIATELY

Hi all,
If you are looking for a simple forex trading system but has a proven good result, so here it is.
Read this article, test it in your demo account, and then see the result.
I don't know who you are and how good is your forex knowledge and experience.
I pretty confident, you too will get a good result just applying this single technique.


Believe me,this system is very simple, even simplest compared with other system I tested.
If you are like me, love a KISS ( keep it simple, stupid !) method,you will love this system very..very..much.
And best of all, IT IS FREE OF CHARGE!


Like many trading vehicles, Forex reacts well to news.
Given that plenty of news items are scheduled for release at set times,
it stands to reason that we should be able to trade those reactions.


Why Trade News?
To make money in the market, we need whatever we are trading to move - either up or down.
As markets spend a lot of time going sideways, any warning of impending movement is a good thing -
we can be prepared to trade that movement rather than wait around all day in the hope that something might happen.
Regular news releases give us perfect warning of impending potential movement,
because they are scheduled for set times throughout the day, and many occur regularly - weekly or monthly.
Anything that happens with regularity can be used to base a trading method on.


What News To Trade?
There’s a lot to choose from, but clearly the type of news we want to trade will depend on the currency pair(s)
we are watching. If you play the US Dollar crosses then US releases such as the Non-Farm Payrolls or Weekly Jobless figures
will be the ones to watch. The more you watch the markets at news release times,
the more you will get a feel for which regular releases are 'market-moving'.
Subscription services like Briefing.com can help too, in grading news items by their market-moving ability.


A Simple News Trade

Here is a simple but very effective way to trade the news - it can be tailored to an individual trader's style and risk profile as required.
Using a 15 minute chart, wait for the news release, and do nothing for the remainder of the 15 minute bar immediately following.
In this example chart, which shows Cable (GBP/USD) at the time of the Weekly Jobless claims figure -? announced on Thursday mornings at 8:30 EST, we see that the 8:30 bar (highlighted) shows some volatility as the market makes its initial reaction.
At the start of the next 15 minute bar (8:45 in this example), we simply go Long if the previous bar closed Up (i.e. was a blue candle) or Short if the previous bar closed Down (i.e. was a red candle).
The idea is that by the first 15 minutes, the market has had time to digest the information and make up its mind about a direction.
The final direction after this 15 minute period tends to carry through in at least the next bar.

In the example here, we would have taken a short at the start of the 8:45 bar, with a tight stop - we are looking for quick follow through so if that doesn't happen we want to be out with minimum loss.
Exiting point for a profit is discretionary; one possible method is to use a break of the previous bar, which in this example would have netted us a quick low-risk 25 pips.
If we traded other currency pairs at the same time, clearly we could have taken more pips out of the market.

There is one caveat to this trade: if the initial 15 minute bar at the time of the news release moves a long way in one direction very quickly (more than 100 pips, say),
we would walk away and leave the trade - it's already made the move and further follow through is unlikely.


This is a simple setup, but a remarkably effective one.
To get the best from it, a trader should ideally be watching several currency pairs - not all of them will follow through
- so watching more gives a better chance of picking up some big winners.


This system is created by Rachel Knight www.forexheaven.com

My forex trading system

FX10 [5 minute or 10 minute chart] Day Trading Method

Hi all,

Please read carefully to this post. I am about to reveal my forex trading system
which I have been using for years and successfully generate money to my pocket.

I found this strategy in 2005 and until today it has been generate good result.
This system is created by Erol Bortucene,President of Forex Research Corp.
this is a simple and effective trend following method for any major exchange rate. I
hope you can adapt this strategy to suit your trading style.

5 minute Chart Set-up
Description: An intra day trend following trading method, using the following indicators:
• 10 period WMA (Weighted Moving Average)
• 20 period SMA (Simple Moving Average)
• Slow Stochastic (10,6,6 (exponential))
• RSI (28)
• MACD (24/52/18 (exponential))

Rules: Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.

BUY the exchange rate when the 10 WMA crosses up past the 20 SMA and the Stochastic is
signaling up (fast line above the slow line), RSI > 50 and the MACD histogram >0 and MACD
averages crossed up.

SELL the exchange rate when the 10 WMA crosses down past the 20 SMA and the
Stochastic is signaling down (fast line below slow line), RSI<50 and the MACD histogram <0 and MACD averages crossed down. Try and take profits at or near key levels: Try and take profits at exchange rates ending with 00, 20, 50, 80 e.g. EUR/USD 1.1980 Stop-Loss Level: discretionary

Screen shots:
EUR/USD Buy signal[below]






GBP/USD Sell signal[below]





10 Minute Chart Set-up
To set this method up with 10 minute charts, simply use the same rules above, but change
the indicator values to the following:
• 5 period WMA (Weighted Moving Average)
• 10 period SMA (Simple Moving Average)
• Slow Stochastic (5,3,3 (exponential))
• RSI (14)
• MACD (12/26/9 (exponential))

Note:
Do 1-2 weeks testing in your demo account or until you get comfortable or good result before
applying in your real account.

You can visit erol's website at TradeCurrency.ca