Wednesday, November 15, 2006
Forex day Trading System - Do you need more strategies?
Forex day Trading System - Lets go through another strategy
Lets go through another system which is as expected simple and as expected very effective.. This system is based on parabolic SAR and exponential moving averages (EMA)..
It can be applied on a 15 min. chart or it can work on a 1 hr. chart...However, let me tell you if you are tading 15 min. chart, don't trade this during news or fundamental announcement time (such as Non Farm payroll or NFP announcements)..
Lets go through the system..Oh but before that do you know what is parabolic SAR? Its another technical indicator is popular..We'll go through it in tomorrow's session..
But 1st the system and its details -
Learn chart setup for this forex trade online -
1. Set up Exponential moving average (EMA) for 10 , 25 and 50 points..
2. Set parabolic sar with the reading 0.02 and 0.2 values..We'll go through details of this technical indicator in next session..
Thats all is required in the chart set up..Once done, next is to wait for a setup to enter the trade.
When to enter -
When the 10 EMA crosses 25 and 50 EMA from below and the parabolic SAR is below, that means its time to enter the trade..When you enter, your stop loss should be about 15-20 pips away from 50 EMA..
Reverse is applicable for short or a sell trade..Simple isn't it?? This is a very popular forex day trading system.
One caution..If you are trading 1 hr chart, your 15 min. parabolic SAR should be lined up with 1 hr SAR..it should not be against.
When to exit -
When the price crosses the 50 EMA or when you find a major resistance (for buy trade) on a daily chart or a major support level (for a short trade).
Try this out..I would suggest you to learn and try this forex trade online on major currency pairs such as EUR/USD, GBP/USD or USD/CHF.
Thats all in today's session..We;ll cover parabolic sar next time in forex day trading system..
Lets go through another system which is as expected simple and as expected very effective.. This system is based on parabolic SAR and exponential moving averages (EMA)..
It can be applied on a 15 min. chart or it can work on a 1 hr. chart...However, let me tell you if you are tading 15 min. chart, don't trade this during news or fundamental announcement time (such as Non Farm payroll or NFP announcements)..
Lets go through the system..Oh but before that do you know what is parabolic SAR? Its another technical indicator is popular..We'll go through it in tomorrow's session..
But 1st the system and its details -
Learn chart setup for this forex trade online -
1. Set up Exponential moving average (EMA) for 10 , 25 and 50 points..
2. Set parabolic sar with the reading 0.02 and 0.2 values..We'll go through details of this technical indicator in next session..
Thats all is required in the chart set up..Once done, next is to wait for a setup to enter the trade.
When to enter -
When the 10 EMA crosses 25 and 50 EMA from below and the parabolic SAR is below, that means its time to enter the trade..When you enter, your stop loss should be about 15-20 pips away from 50 EMA..
Reverse is applicable for short or a sell trade..Simple isn't it?? This is a very popular forex day trading system.
One caution..If you are trading 1 hr chart, your 15 min. parabolic SAR should be lined up with 1 hr SAR..it should not be against.
When to exit -
When the price crosses the 50 EMA or when you find a major resistance (for buy trade) on a daily chart or a major support level (for a short trade).
Try this out..I would suggest you to learn and try this forex trade online on major currency pairs such as EUR/USD, GBP/USD or USD/CHF.
Thats all in today's session..We;ll cover parabolic sar next time in forex day trading system..
Comments:
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Hello, great posts. Good for noobs like me. I like this strategy and i'd like to read up more on it. What is the name of this strategy.
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