FOREX STRATEGY Fozzi
Strategy Forex Daily Fozzy Method
for trading on Forex Strategy Daily Fozzy Method , you should choose - day interval , install an in selected currency pair (which can be any) Forex Indicator RSI (period 8, close), and then set the same exponential moving average EMA with a period of 8 to forex indicator RSI . For this necessary in the Navigator to select the indicator forex «Moving Average» and move it to the window of an already established indicator of RSI, a drop-down box "Apply to" to choose «First Indicator's Data» .
Likewise, set the indicator forex ATR with 20 as the window indicator forex RSI. Note: Under "Color" to choose «none», because we need only the volume.
data forex indicators are present in standard trading platform MT4 , ATRshannel - at the end of forex strategy.
On the main schedule set moving average EMA with a period of 28 . As a result, your resulting graph should look something like this:
opening trade on forex strategy Fozzy Method:
The rules for the transaction very simple - We look forward to the moment when line of the RSI indicator crosses the MA.
Open positions for the purchase of , when the line forex indicator RSI crosses below MA up .
Open a deal to sell , when the line forex indicator RSI crosses MA from the top down .
pay attention only to signals that appeared only after the closing day candles . No need to open a bargain on the same day, as soon as the trading signal, because It could easily not be confirmed. Open the bargain after the publication of the next candle (ie, opened a new daily candle).
alignment of the stop-loss orders is very important to protect your capital.
There are several methods of installing a protective stop-loss orders:
I recommend using this forex indicator ATR , which we also ustanovlivaem on schedule. ATR indicator shows the volatility in the numbers of the currency pair (see Figure 2). A small number of indicator ATR (30-50 pips) shows that the daily volume was low, the currency pair is moving very little. Large LED indicator ATR (100-200 pips) shows that the market or there is a strong trend, or a large fletovoe swing. Clearly, for large values ??of ATR is necessary and large stop-loss. Most recommend the use of stop-loss 70% of the indicator ATR . Let's look at the picture, as it is done.
Another method of placing a stop loss order - a simple technical market analysis . To determine what levels of support or resistance steel. We can very easily use yesterday's high (high) or minimum (low) as the border of placing stop-loss, based on the fact that yesterday when the market price is not broke this level, you probably will not be able knock him today. But do not forget to add another 5-10 pips for the insurance, in case a sudden price still comes to yesterday's high or low and otskochet from him.
Closing of the transaction on the Forex Strategy Daily Fozzy Method:
Since Forex Strategy "Fozzy Method" is the day, more than the best option - taking a large profit, but it needs to stay in the market, hoping to continue the trend. In this case, we do not set a final take-profit.
Therefore our goal - move the stop-loss day by day (so as not to let the market take away all our profits in a trend reversal), thus fixing a guaranteed profit as the market moves and let the market itself decides when to get out of the deal. You should install stop loss of 70% of the indicator ATR . On the next trading day if the market is still going in our direction, we move our stop-loss orders based on price movements in the market, or fix a portion of the profits, or if it would be appropriate - reduce the size of the stop-loss. The result will be an ideal situation, when we are in the deal and we already have some profit and we can afford to follow the trend without much risk. This concept of trading is free swimming.
Take a look at Figure 3.
On the chart we see that forex indicator gave us a buy signal. We set up a safety stop-loss of 70% of the indicator ATR. This indicator shows forex trendline , which should be installed stop-loss: when buying it at the lower boundary, and the sale at its upper limit.
The next trading day, we move the forex indicator on the position of «b». As you can see, we recorded a small portion of the profits. On the next trading day, we move our stop-loss position «c». The transaction closed on stop-loss positions at «d».
There is another method of closing the deal - you can leave it on the same day, having received their profits as quickly as possible, but the ability supercritical greater profits as you are lost.
We should pay attention to support and resistance levels - they give you the logic level, indicating the need to exit a trade.
28 EMA - a very useful moving average, as soon as it comes to day intervals . It clearly shows the levels of resistance or support , I also can be used as an indicator of the trend.
Good target for TP as well yavlyayutsya Fibonacci extension.
Remember, do not need to trade every day. In fact, out of the transaction - it's also a good trading position , the same position as the purchase or sale, as than trade lizhby as it is better to just keep our own capital. It is better to choose the transaction as: if the price over the last few months has remained either above or below 28 EMA on the daily chart, we are seeing a good trend .
Therefore it is better to open deal with the trend . And that means ignoring the trading signals that go against the trend and wait for the trading signals only on the trend . If you do decide to trade against the trend, do not expect to get more profit.
Models candles also play a crucial role in concluding the deal , while defining the pivot point price in the market. If I suddenly saw these pricing models: a hammer, shooting star and they are confirmed by a signal from the indicators, I will certainly open up a bargain.
The main objective of trading, to conclude lucrative deals - learn how to integrate various aspects of technical analysis in a single trade deal.
Remember that loss - it's just part of the successful forex trader, but it is always necessary to reduce their number by analyzing your own private business. Once the signal is the signal, especially as only 8 EMA is flat, then this point it is best to wait it out or open the transaction with a fixed Teyk-profit.
And certainly do not need to take the trading signals that have emerged in consequence yield very important forex news . Very often, after the unexpected news in the market, the price drops like a stone and takes a lot of trading signals. Watch for Forex Economic Calendar . Personally, I do not recommend to consider such trading signals, the only exception may be - interest rates, how much were they good influence on the foreign exchange market within a few trading days and can start a great trend.
If the signal was very large candle, however you decide to take this trading signal, you do not open a bargain at the opening of the next trading candles. And wait until the price not roll back to 23.6 or 38.2 Fibonacci , which are installed by the high and low the previous day. This allows you to get the best price on the market and will greatly reduce the amount of stop-loss. Sometimes you can just skip the bargain if the price does not abort, but our goal, as is known - to minimize the number of stop-loss and thereby preserve our trading deposit for more lucrative deals.
I personally recommend risk no more than 3-4% of the capital on the strategy for each deal . You can trade in any currency pairs, but better to look at couples who are independent of each other: EURUSD, USDCAD or GBPJPY .
So I recommend to look at this forex strategy at history and determine how generally work out trade signals, to know how best to sell.