Forex Strategy Day-Hour
In forex strategy Day-Hour , based on an estimate of 2 time-frames that are trading with the trend and is mainly used promptness day (D1) and 4 time intervals (H4). Perhaps a combination of both time intervals, such as H4 - H1. But mostly it was designed to D1 - H4. currency pair can be any (as the major currency pairs and cross rates).
On day interval (D1) with a simple moving average SMA will identify the trend in the market , and on 4-hour interval - will receive trading signals for conclusion of the transaction and exit from the market .
And so, the following forex indicators, which are present in trading platform MT4 immediately after it is installed on your PC:
1) Simple Moving Average SMA (3) with a shift of 3 (it should be set on the day and 4-hour interval).
2) indicator MACD (12,120,5) (set the interval H4) - can be used as an indicator and MACD-combo .
2) forex indicator RSI (9) (set the interval H4)
analysis of the situation on the market with the help of forex strategy "Day-Hour":
The first step - On the interval D1 find daily closing price of candles, with respect to moving average SMA (3). If the closing price of yesterday's daily candle is above the moving average, we will be in the range H4 consider only trading signals for buying . If the price closing yesterday's daily candle is below the moving average SMA (3), we will be in the range H4 consider only the trading signals for sale . Well, if it is difficult to determine where the candle is closed, for example, the chart appears doji at the intersection of SMA, then the best option would be to miss a trading signal, and wait until you get a distinct signal.
Once we have defined what a deal we are ready to conclude, on a reduced time scale H4 consider the following :
1) signal from the indicator forex MACD - moving average.
2) the direction indicator RSI - up or down.
3) is present if a candle closes above or below a moving average.
yesterday afternoon at the Japanese candlestick chart closed below the MOP (moving average), this means that today, according to the rules of this trading system should be at the 4-hour chart to take into account the trading signals only for sale.
first trade signal is from the MACD indicator forex (main intersection and the signal line). However, the closing price of the last candle on the range H4 is still higher than the SS, so we waited until the price falls below the SS. The third confirmation for the transaction will be the direction indicator RSI. This forex strategy is enough, that he had been directed towards the conclusion of the transaction.
Stop-Loss set to local minimum (at closing on the purchase) or the maximum (in our case).
closing trading positions occurs when the reverse sitnalah forex indicators. However, this does not happen often inconvenient, unnecessarily when trading in the time frame of 4:00 to close the right moment trading position can occur only on the following trading day. Therefore easier to count profit target with a more family support and resistance levels, as well as on Fibonacci extension .
For example, the transaction was closed by order of take-profit with a profit of 73 points.