System Forex Strategy
This System forex strategy , was created to trade the 4-hour time-frames
Used forex indicators and tools:
1) MACD (8,17,9)
2) Stochastic (8,3,3), add the levels of 76.4 and 23,6
3) The trend line of Tom Demark (Tom Demark Trend Line indicator) - he comes to better identify the current trend in the market.
4) levels and Fibonacci extension, namely SK Fibonacci ( super-cluster of Fibonacci ). SK Fibonacci - this is a strong level of support or resistance for the market prices, which were formed on the basis of 2 levels of Fibonacci retracement of 38.2 and 61.8 (ie, when these levels coincide or are close). This area is a very strong area of ??support (if it is below the price - to buy) or resistance (if it is higher prices - for bargains on sale).
To determine the goals to close the deal ( take-profits ), this strategy uses the Fibonacci extension of 61.8%, 100% or 161.8%.
Transactions for the purchase, in an uptrend (all items are numbered transactions in Figures 1-3):
1. If there is an uptrend in the market to start looking at the Stochastic Oscillator in the 4-hour chart, and determine the situation on the oversold currency pairs, while considering all pairs for which you are allowing yourself trade.
2-3. Once we found a suitable situation to us - Stochastic Oscillator is located in the zone of its oversold, looking for confirmation on the MACD indicator on the D1 and H1 charts (in their own intervlah must show the same type of signals). If on the D1 chart we see the divergence on the MACD indicator signals, the sign trade deals will not. The angle of the indicator moving average of the MACD indicator 45 degrees or nearly parallel to the moving averages, yavlyayutsya a very good sign for transactions.
If the MACD indicator line on the D1 chart placed near or intersect, then we must have the super-cluster of Fibonacci (SK) 38.2% and 61.8%, and Trend Line about the price.
If on H4 chart Stochastic Oscillator only 50-60% is oversold, the trading position is not open, because the market can still much deeper pullback against our trading position.
4. So do we need to get confirmation of D1 (daily) Trend Line, if it supports the price on the chart in an uptrend. In the case of a breakdown of the day Trend Line, it must be kept super-cluster of Fibonacci (SK) or trade levels Fibo 38.2%, 61.8%.
5. Then hold on Fibo retracement level on H4 chart and determine the presence of the super-cluster of Fibonacci (SK).
If this SK on the chart there, the trading position is not open!
After confirming all the necessary conditions to construct a Fibonacci extension levels (Fibo) from the previous swing low to the current maximum on the chart, and then to the current minimum to get the level of a Fibonacci extension Fibo 61.8% for our target prices.
6. Before you open a trading position, place a stop-loss at the current minimum or maximum level close to Fibo 61.8%.
7. And then identify the target at the level of expansion Fibo 61.8%.
1. To open a transaction for the purchase, the price should not be below the Fibo 61.8%.
2. We should not risk more than 3-5% (maximum of 7-8% - in ideal cases and the presence of an existing backlog of profit on the deposit) for each open trade in your trading balance at the time of the transaction. < br /> 3. Ratio of risk to profit in this strategy should be much greater than 1:1, ie at least 1:2, and up to 1:10-20!
For transactions on sale - check condition!
more closing conditions (if it is not closed by TP or stop-loss):
1. If on H4 chart Stochastic Oscillator moved into the overbought zone (for a long trading position), the transaction closes at the market price.
2. And just in case the intersection averages MACD on H1 or D1 chart.
3. Position as well be closed in case of breakdown of the trend line of Tom Demark.
4. If, after 8-16 hours after the opening of the stop-loss or profit - as it should be closed.
5. Close a trading position, if the goal is almost reached, but the price does not go further, or if you are satisfied with the open transaction and believe that the position should be closed as well.
6. So if you see fit, you can close a trading position, on the eve of the approaching weekend or holiday one of the major countries of the currency pair you used to open the transaction.