Forex Strategy Trend following
In forex strategy Trend following used the following indicators forex:
1) 3 exponential moving averages EMA 21, EMA 55, EMA 200 - on the closing prices (Close) - with their help, we identify a trend and its direction in the market;
2) Forex Indicator RSI (13) - indicates that there are divergences in the market, as well as to determine oversold and overbought, as well as areas for trading on the sale or purchase price and the breakdown channel.
3) Forex Indicator ISDA (MACD) - indicates that there are divergences in the market, as well as to determine areas for sale or for purchase.
4) Fibonacci - allow us to determine the profit target.
All these tools and indicators forex presentedin standard set of POS Metatrader 4 .
General conditions for forex strategy "Follow the trend»:
1. Analyze schedule H4.
If the moving average EMA 200 is directed downward, we have now considered the core Down-trend (falling), if the moving average EMA 200 points up, we have now considered the core Up-trend (rising). Once the market price rises above the exponential moving average EMA 55 and EMA 21 - we will consider the opportunity to sign a deal to buy , while the 1st desired profit target - it average EMA 200. As soon as the market price falls below exponential average and EMA55 EMA21 - we will consider vozvozhnost to conclude a deal to sell , while the 1st desired profit target is also moving average EMA 200.
2. H1 pass schedule.
For transactions on the purchase price must be above the moving average EMA 55 and EMA 21. For transactions on sale , the price must be below a moving average EMA 55 and EMA 21.
Additional conditions for the opening of trading transactions:
Transactions on Sell, during H1 - Log into the bargain on the breakdown of a moving average EMA 21 and EMA 55. If there was a divergence or the price is in oversold territory - that these conditions further reinforce the trading signal for the deal to sell and you can enter the market even after the breakdown of a moving average EMA.
Transactions on Buy, period H1 - The entrance to the trade transaction is carried out on the breakdown of a moving average EMA 21 and EMA 55. If there is any divergence of the price is overbought, then this condition significantly enhances the trading signal for the deal to buy and therefore the opportunity to enter the market after the breakdown of a moving average EMA.
Harnesses Stop Loss and profit target - Take Profit.
Stop Loss set order to the closest at the moment a local maximum or local minimum, or equal to 2% of the value of your trade deposit.
As soon as the market price is 70 - 100 pips - portable Stop Loss order in the area bezubytka.
Take Profit order set to expand and Fibonacci levels.
Once the trend begins to develop - constantly reposition the Stop Loss order level of the nearest local maximum or local minimum. Also, you can move the Stop Loss order a safety point of intersection moving average EMA (200, 55, 21) and at 00:00 of the trading terminal.
Examples trade forex strategy "Follow the trend»:
is a simple commercial transaction. Bearish divergence is present, therefore, conclude a deal after the breakdown of a moving average:
example the length of the transaction: