Tuesday, November 14, 2006
Forex day Trading System - Continuing trading using 1 min chart
Forex day Trading System - Continuing trading using 1 min chart
Lets continue day trading using the 1 min chart..After the setup was made as mentioned in last post, lets go the entry and exit strategy
Entry -
You are going to enter the trade as soon as -
3 EMA (Exponential Moving Average) crosses through the 18 Bollinger Bands Middle line.
This will need to be confirmed by lining up of Relative Strength Index (RSI) and MACD Histogram - Above 0 (MACD) and above 50 (RSI) for BUY signal. Below 0 (MACD) and below 50 (RSI) for SELL signal.
Once you enter the trade, your stop will be 10 pips away from the entry point..
Exit -
For this forex day trading system, you Exit point is very simple - A profit in range of 7-10 pips. Once realized, close the trade..
Remember the risk to reward ratio here is 1.5 to 1..This means higher risk and lower reward..learn this in forex trading online.
However, this strategy has more winners..so, this risk and reward is still acceptable. Personally, I do not trade anything lower than 5 min. chart..However I have heard that quite a few traders have good profit with this system..
Thats all in this session to learn forex trading online...Visit again to understand more forex day trading system
Lets continue day trading using the 1 min chart..After the setup was made as mentioned in last post, lets go the entry and exit strategy
Entry -
You are going to enter the trade as soon as -
3 EMA (Exponential Moving Average) crosses through the 18 Bollinger Bands Middle line.
This will need to be confirmed by lining up of Relative Strength Index (RSI) and MACD Histogram - Above 0 (MACD) and above 50 (RSI) for BUY signal. Below 0 (MACD) and below 50 (RSI) for SELL signal.
Once you enter the trade, your stop will be 10 pips away from the entry point..
Exit -
For this forex day trading system, you Exit point is very simple - A profit in range of 7-10 pips. Once realized, close the trade..
Remember the risk to reward ratio here is 1.5 to 1..This means higher risk and lower reward..learn this in forex trading online.
However, this strategy has more winners..so, this risk and reward is still acceptable. Personally, I do not trade anything lower than 5 min. chart..However I have heard that quite a few traders have good profit with this system..
Thats all in this session to learn forex trading online...Visit again to understand more forex day trading system
