Cornflower Forex Strategy
Hourly Cornflower forex strategy based on the principle that trade deals must be open as soon as you see a trend in the same direction at different time scales .
At the time schedule for the chosen currency pair, you must put the following exponential moving averages. The trading terminal Metatrader 4 is an indicator of Moving Average, the method of Exponential:
8 EMA (color yellow, dotted)
12 EMA (purple color)
24 EMA (color blue)
72 EMA (color "khaki")
In trading on the forex strategy can be used only hour and 30 minutes. graphics, but it is more aggressive method of trade, as shorter time intervals give many false signals, and longer are very zapazdavshimi.
principle trade forex strategy Cornflower:
On the hourly chart, 24 EMA shows the trend of the day . Moving Average EMA 8 shows the rate of money turnover for the current day , its value lies in the fact that it is very often acts as a support for a strong trend in the market . The same can be said of the moving average of 24 EMA, but to a lesser degree.
Continuous trend in the market from time to time we will come back to this area, like "breath." At such times the market price accumulates a lot of money for the next breakthrough price, so there is a good opportunity to buy or sell at a lower price on the market with such a pullback. Finally, the exponential moving average 72 EMA, defines the trend, which is now present in the forex market .
If moving averages 8, 12 and 24 EMA are above the average 72 EMA - which means that we are in bull market and should not enter into transactions for sale !
All of these rules with exact opposite applies to the bearish trend .
Cornflower Forex Strategy can be used by any trader to his. As soon as the price pulls back to the area of ??moving averages of 12 and 24 EMA - a good chance for short-or medium-rollback. You can make a deal, setting Teyk-profit or at Fibonacci levels, or to support and resistance lines. Is still possible to catch a long trend in the market, using an open position a trailing stop, but as exit the market when the moving average crosses the 12 EMA 24 EMA high in the opposite direction to the steady trend . These transactions can be quite profitable and can yield hundreds of pips of profit a trader in a trading transaction, which may last even a few weeks. This trading system "Cornflower" allows the trader to catch all the big moves in the market, as is done by professional traders and traders of big banks.
basic trading rules hour forex strategy "Cornflower":
There are two ways to enter the market on the forex strategy:
1) Rollback (conservative entry into the market) - hour schedule:
- Moving averages 8, 12 and 24 EMA are above (buy) or below (sell) exponential moving average of 72 EMA .
- The price on the market rollback to an average of 12 or 24 EMA (remember - the stronger the trend, the smaller will be rolled back).
Open transaction with profit of at least 20 pips , or hold a trading position at the discretion of forex trader, depending on the strength of the observed trend.
2) original (progressive entry into the market) - schedule 30 minutes (M30).
- The price on the chart moving average has broken 72 EMA (candle to close above the purchase or sale of below average 72 EMA.
- Moving averages 8, 12, 24 EMA are rotated in the direction of the main trend and preferably lined up in order (8 over 12 over 24 - a deal for the purchase of 24 over 12 over 8 - to sell the deal).
- Open up a deal with profit of at least 20 pips , or hold a trading position at the discretion of forex trader, depending on the strength of the observed trend, if not a breakthrough was false, using the a trailing stop .
Stop-Loss better place for the important Fibonacci retracement levels (38.2%, 61.8%) or for the EMA 72. But it also should consider the feasibility of the transaction, ie desired TP must be at least 2 or more times to be more stop-loss.
20 pips - the minimum target to take profit, especially in the currency pair GBPUSD, GBPJPY and EURJPY, which can be easily reached by the market, but it is better to set a goal for at least 50-100 points .