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Profitable forex day trading strategy

Most profitable Forex trading strategies,Simple is the Way to Go – profitable strategy forex

WebCan Day Trading Actually Be Profitable? Day traders tend not to hold positions overnight, they try to profit from the latest wave of price movements and trends in the markets. The Web1/10/ · SIMPLE Forex Day Trading Strategy! (Secret To BIG Profits) - YouTube. / #fx #supportandresistance #forex. SIMPLE Forex Day Trading Strategy! WebWhat is This Simple Profitable Forex Trading Strategy? In this trading strategy, we use 50 simple periods moving average to determine the market trend and use bullish and Web31/10/ · Building a profitable trading strategy – Complete guide. If you go to the internet, you will often find trading to be represented as the “ escape” or something ... read more

Now, all we need is a bullish engulfing candlestick to go long. As expected we got a bullish engulfing pattern and after that price shoot like a rocket. As you already know this simple forex trading strategy is highly based on the small risk and higher reward. Assume you had a bullish engulfing candle and you should place your entry at the closed on that candle. Next, measure the size of that bullish engulfing candle in PIPs and place your stop-loss twice that distance.

For example, if the size of a bullish engulfing candle is 7 PIPs, then your stop-loss should be 14 PIPs. According to the above chart, you can see that we got pullback trade entry as the marked bullish engulfing candle is closed. So our trade entry should be there. Now, the size of that candlestick is 7 PIPs, therefore Stop-loss should be 14 pips which is twice that candle. This is how you place the stop loss when trading with this simple profitable forex trading strategy.

We can also avoid larger drawdowns by cutting losses. If you can follow the above rules without letting your emotions affect your trading decision, you can become a profitable trader and a professional risk manager in no time. Step 1 — If Price Break Above or Below the Engulfing Candle, We Should Close the Trade Manually.

Assume you saw a bullish engulfing candlestick pattern and decided to take a long position. After that, the price break below the trade entry and closed below the bullish engulfing candle. When this occurs, the bullish engulfing is no longer valid, and there is no reason to keep the trade open. Therefore, we should cut our losses as soon as possible by manually closing the trade. This way we can stop a trade turn into a bigger loss. First, we can see that there is a bearish engulfing candlestick pattern that occurred after price break below the 50 SMA and this is a valid trade entry as well.

What happened after we went short? Within two candles price went up and closed above the bearish engulfing candlestick. Which mean our trade entry got invalidated. Now What? Simple, as a trader and as a Risk Manager, you should cut your losses because our trade entry got invalidated and there is no reason to keep hoping that this trade will turn in our direction. In this step, we are giving some time period to see how the trade plays out. If the trade has the momentum to move in our favour within that time period we gave, there is no problem.

Simply because the momentum is not in our favour. According to the above chart, we got a breakout entry with a strong bearish engulfing candle. This is our trade entry and we can place a short trade here. Now in this scenario price never tried to close above the entry candle. This is how you take control of your losses and keep your losses short, so that when you hit winning streaks and bigger winners you asymmetrically compound your gains.

According to the above chart, we got a strong bearish engulfing entry signal following the break of the 50 SMA. We can place a short trade there.

Right after we executed a short trade, momentum began to kick in and price began to move in our favour, eventually reaching our 1R profit target. Have a look at the red stop loss line. This is the third step on how to cut losses. At this point, there is little to no risk on our trade. We dramatically reduce the risk of our trade using these simple trading techniques.

Step 4- When the price move 1. This is where we turn our risky trade into risk-free trade by moving the stop loss to breakeven after the price reached 1. Just like the previous example, in here price first reaches to 1R level. But in here price did not stop after reaching 1R profit level, it moves down and hit our 1. Right after that, we can move the stop-loss to breakeven and take all the risk out of the table. Now we have no risk attached to the trade, next, all we have to do is to let the trade play out and manage the trade as the price move in our favour.

Managing trade is easy. You just have to trail your stop loss while the price move in your favour. As previously stated, after a trade has hit 1.

The next question is how we will manage our trade and profit after the price has reached 1. So, managing a trade is not that difficult, especially because we apply a set of rules that are simple to follow and execute.

For example, when the price is 3. That way we can leave 1. Have a look at the chart below. First of all, have a look at the trade entry. This is an initial breakout entry. Because we got a bullish engulfing candle on the initial breakout and with that, we placed a long trade. Right after the trade entry, the price moved in our favour without taking much time. As the chart is shown above, price pushes all the way up to 2. Which mean we should trail stop-loss to 1R in the profit.

That is what we did the above. What happened after the price reached 2. Market reverses in the other direction, right? Fortunately, we had our stop-loss at 1R. Therefore we were able to book 1R profit without giving all the unrealized profit back to the market. One last thing, when trading with this simple profitable forex trading strategy, you should place your Take Profit order at 5R. Have a look at the above table for reference.

Is this simple trading strategy suitable for you? Is it compatible with your daily routine? Is it a good fit for your personality? Consider this question, and I hope you now understand every detail of this trading strategy. If you have any questions about this method, please leave them in the comments area. A very good reference for another simple forex trading strategy from forex4noobs: FOREX TRADING STRATEGY: The Ultimate Guide Update. Your email address will not be published.

Save my name, email, and website in this browser for the next time I comment. We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio. Trade Article. Simple Yet Profitable Forex Trading Strategy Consistent Monthly Gains. Do you find it difficult to make consistent monthly profits from forex trading? Then, this simple Profitable forex trading strategy is for you.

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How to Enter the Market. OPEN SELL RULES. Where to give Stop loss. How to exit the market. When You Should Not Open Trade. DOWNLOAD TRADING SYSTEM. Recommended Article: Forex Color RSI Histo - The Best Trading System To Help You Find High Probability Trades. Leave a Reply Cancel reply Your email address will not be published. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.

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Every trading manual or instruction insists that a trading strategy is necessary for successful trading. First of all, when you select your forex strategy you gain greater clarity of the trading process, which helps minimize trading risks.

Profitable Forex strategy is an instruction. A trader faces high risks without using any system or plan. The market is hard to predict, and it often results in trading mistakes. Your forex strategy will tell you what you should do in various changeable market conditions. Your trading strategy should be suited for any situation. Your trading strategy will prompt you when you need to enter or exit the market. But it mustn't contain any unjustified elements. Trading strategies can be based on various tools.

The most popular trading strategies are:. These strategies make up a basis to develop your own forex trading strategy. The suggested setting and recommended levels to put pending orders are nothing more than a recommendation. If you do not like the backtesting or the performance on a real account, the strategy may not be a fail. You just need to find individual parameters for indicators suitable for a particular asset or a current market situation.

This strategy is quite popular, at least, you can find its description on many trading websites. However, Internet resources suggest different recommendations concerning the Bali trading strategy. According to the developer, Bali is a scalping forex strategy, or at least, it is designed for short term time frames. It is also good for day trading. It suggests quite short stop losses SL and take profits TP. However, the recommended timeframe is rather long, and so, signals are sent quite rarely.

Linear Weighted Moving Average serves here as an additional filter. As the LWMA attaches more importance to the most recent price moves, there are almost no delays in the long-term timeframes. Occasionally, the LWMA may send an early signal in the long run.

But this strategy considers only the MA position relative to the price movements. If the LWMA is below, it is a buy signal.

If the line is above the price, it is a sell signal. The indicator is also based on Moving Average, but it has a different calculation formula. Its layout is more accurate the price noise is reduced. It allows you to identify the breaks in the trend a little earlier than the ordinary MA. Trend Envelopes has an interesting property. It is a kind of trading signal. The indicator is displayed in a separate window under the chart. This is an oscillator that identities trend pivot points.

It does it quicker than standard oscillators. It has two lines: the signal line is dotted, the additional line is solid. But the receiving line has two types of colours orange and green. Note that the indicators in the Bali trading strategy are selected so that they provide an early signal buy and sell.

This gives a trader more time to confirm the market moves and check the fundamental factors. MA is a standard MT4 tool, the rest two indicators can be obtained for free in the archive via this link. Past the indicators into the folder and restart the platform.

The price breaks through the orange line of Trend Envelopes upside. At the same candlestick, the down orange line changed into the rising blue line. The candlestick is above LWMA. When the previous condition is met, expect the candlestick above the MA to appear. The candlestick must close above the red line of LWMA.

There must be the blue line of Trend Envelopes at the signal candlestick. The additional line of the DSS of momentum at the signal candlestick should be green. This line must be above the signal dotted line that is, it is breaking it through or has already broken.

Enter a trade when the signal candlestick closes. I recommend setting a stop loss at a distance of points in four-digit quote. A take profit is points. The arrow points to the signal candlestick where Trend Envelopes colours change. Note purple ovals that the blue line is below the orange and is moving otherwise the signal should be ignored. At the signal candlestick, the green line of the DSS of momentum is above the dotted line.

The price breaks the blue line of Trend Envelopes downside. At the same candlestick, the rising blue line changes into the falling orange line. The candlestick is below LWMA. When the previous condition is met, expect a candlestick to appear below the moving average. It must close under the red line of LWMA.

There must orange line of Trend Envelopes at the signal candlestick. The DSS of momentum additional line should be orange at the signal candlestick. It should be located below the signal dotted line that is, it is breaking through it or has already broken.

The below screen displays a candlestick that closed at the level of MA the red line , almost fully below the line. The below screen shows that the DSS is below its signal line at the signal candlestick. Besides, the blue line is flat, not rising. Signals are relatively rare, you can wait for one signal for a few days. Do not trade when the market is flat. Test this strategy directly in the browser and assess the performance. This is a profitable weekly trading strategy, which can be used for position trading with different currency pairs.

It is based on the springy action of the price — if the price rose quickly, it should fall sooner or later. We can use a chart in any terminal and a timeframe W1 although you can also use a daily timeframe. You should analyze the size of the candlestick body of different currency pairs.

There is a wide range of pairs: AUDCAD , AUDJPY , AUDUSD , EURGBP , EURJPY , GBPUSD , CHFJPY , NZDCHF , EURAUD , AUDCHF , CADCHF , EURUSD , EURCAD , GBPCHF. Next, choose the pair with the longest distance between the opening and closing prices within the week. You will enter a trade on this pair at the beginning of the next week. The bear candlestick, indicating the price action for the previous week, has a relatively big body. You enter a long trade at the beginning of the next week.

You should set a stop loss at a distance of points and a take profit - at points. In the middle of the week, exit the trade. It may be closed with a take profit or a stop loss. Then, again expect the beginning of the week and place a new order. Do not place orders at the end of the week. It is clear from the chart that, following each bearish candlestick, there is always a bullish one although it smaller.

The matter is that what period you should take to compare the relative length of candlesticks. It is individual for each currency pair. Note that some small bear candlesticks were followed by rising candlesticks.

The relatively small fall, occurred in the previous week, may continue. The bullish candlestick, indicating the action during the previous week, has a relatively big body. Red arrows point to the candlesticks that had large bodies relative to the previous bullish candlesticks.

All signals were profitable except for the trade that is marked with a blue trade. The disadvantages of the strategy are rare signals, although the percentage of profit is quite high. And you can launch the strategy trading multiple currency pairs. This strategy has an interesting modification based on similar logic. Investors, day traders, working with a trading volume prefer intraday strategies.

They do not have enough money to make a strong influence on the market. So, if there is a strong market action in the weekly chart, this signal the pressure made by big traders.

Forex Day Trading – Top Brokers & Strategies,Profitability – Profitable Forex Trading Strategies

Web1/10/ · SIMPLE Forex Day Trading Strategy! (Secret To BIG Profits) - YouTube. / #fx #supportandresistance #forex. SIMPLE Forex Day Trading Strategy! WebWhat is This Simple Profitable Forex Trading Strategy? In this trading strategy, we use 50 simple periods moving average to determine the market trend and use bullish and Web31/10/ · Building a profitable trading strategy – Complete guide. If you go to the internet, you will often find trading to be represented as the “ escape” or something WebCan Day Trading Actually Be Profitable? Day traders tend not to hold positions overnight, they try to profit from the latest wave of price movements and trends in the markets. The ... read more

TOP FOREX BROKERS. A good starting point is to focus on major currency pairs — which offer the tightest spreads and lowest levels of volatility. This is an oscillator that identities trend pivot points. In Forex, there is not a simple Forex strategy, there is no Holy Grail. Join Forex. The same goes for trading. As noted above, the only way that you will become a profitable forex day trader is to have a firm grasp of technical analysis.

Sponsored Brokers. A very good reference for another simple forex trading strategy from forex4noobs: FOREX TRADING STRATEGY: The Ultimate Guide Update. If the candle opens below the 5 EMA Low the bottom EMAthen place a buy. For those unaware, profitable forex day trading strategy, a stop-loss order instructors your chosen forex broker to automatically close a position when it goes down by a certain amount. It is based on the springy action of the price — if the price rose quickly, it profitable forex day trading strategy fall sooner or later. Relatively new to forex day trading and still not sure whether this investment scene is right for you?

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