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Renko Ashi Trading System 2

Jan 10, 2016

Renko Ashi Trading System was posted firstly in forex-TSD forum by a trader named Mr Nim. He said that he has made a lot of success since he discovered the renko forex system and started using it. But we must know that just like any other system or strategy, there is no holly grail system in forex trading so it si not a 100% winning system, there will be losers here and there and moreover. So good money management will be very necessary in this strategy.

Renko Ashi Trading System 2


It is recommended to use the renko ashi 2 system on the following pairs EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/CHF, USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY, CHF/JPY, CAD/JPY, GBP/CHF, EUR/GBP or any forex pair that has a spread of less than 10 pips.

This trading system use Non Time-frame analysis called the Renko Chart. In the Renko Chart time is not of concern or time is not what causes separation of one bar/candle to another, the emphasis is on the price and the movements in pips.

For example a 10 pip renko chart will display candles that are 10 pips big and what separates one candle from another is 10 pips of movement. Hence using a renko chart the noise of time-frame based chart are removed and it shows you the chart based on the movement of the market in pips. Time-frame is one easy way of losing money in Forex because if you are using a GMT Broker the candles look different, if you are using a GMT+2 broker candles look different and if you use a GMT+3 broker it looks different. So basically it’s the best way of losing money because indicator reading looks different from broker to broker, candles look different from broker to broker. As forex traders we only need to be concerned of one thing that is the PRICE, because that’s what we are dealing with, Price is what makes people want to buy or want to sell. Change of price is what is the deciding factor between Earning and losing. When
the price of a currency is low it gets into supply/demand, when the price of a currency is high it gets into selling from buyers for a profit. So we just need to be concerned with Price and with Pips in Forex.


Renko Ashi Trading System 2 Rules

Buy Rules
1. Make sure the candles are green in color
2. Make sure the MA_in_applied price is blue
3. Make sure the candles are broken out of the 2 Moving Averages channel
4. Make sure the MACD is flipped Up and Signal is Green
5. Enter a Buy and place the stoploss on the other side of the 2 moving averages channel.




Sell Rules
1. Make sure the candles are red in color
2. Make sure the MA_in_applied price is red
3. Make sure the candles are broken out of the 2 Moving Averages channel
4. Make sure the MACD is flipped Down and Signal is Red
5. Enter a Sell and place the stoploss on the other side of the 2 moving averages channel.




Download Indikator and complete rule Renko Ashi 2 Trading System Download

Learn more about this strategy in Forex Factory Forum

Candelstick Patterns

Dec 21, 2015

The Japanese began using technical analysis to trade rice in the 17th century. While this early version of technical analysis was different from the US version initiated by Charles Dow around 1900, many of the guiding principles were very similar.

The Three Ducks Forex System

Dec 10, 2015

The Three Ducks Forex System was posted firstly in BabyPips Forum by the Guy who use username Captain Currency. It’s a simple strategy and easy to use but quite effective and quick to predict the direction of price movement. Such as another forex strategies, there is no perfect forex system in this business. Any trading system would have had profit and loss, as well as The three ducks forex system sometimes will be loss as well, but with discipline and good money management, the accumulated of tradings will continue to provide profits for forex business.

It's called the three duck strategy because this strategy using three charts with timeframe of 4H, 1H and 5M with period 60 SMA indicator installed on it.

To use this strategy you need to pay attention for three ducks.........., Errr ... I mean, you have to pay attention to the three charts which already installed by 60 periode SMA indicator.

The first duck 4H Chart
Note the 4H Chart whether the price at that time was above or below the SMA (60). In the picture current price is above the SMA (60) line, indicating the price is in uptrend.




The Second duck 1H Chart
Note the 1H Chart whether the price is above or below the SMA (60), This will confirm the trend in the 4H chart. In the image below the price is above the SMA (60) or market is in uptrend movement. Which means it is the same trend in the 4H chart


Important to remember: If the trend in chart 1H was different with trend in H4 chart then close your MT4 application because there is NO TRADE for that moment. And We can not continue to the third duck.


The Third Duck 5M Chart
After seeing the two ducks in the same direction (uptrend) then we need one more confirmation from third duck (chart 5M) for entry and open position. At the moment we are waiting for the price in the 5M chart to cross the lines of SMA (60). It’s better to wait for an extra confirmation until the price breaks the previous higher peak in Chart 5M.



Stop Loss
Stop loss depends on the type of trader You are. If you’re a scalper or short term trader. Then you can place a stop loss a few pips below the previous lowest price in Chart 5M or 1H. But if you are a long term trader then you can put the stop loss below the previous lowest prices of the 4H chart. Or you can also put a fixed stop loss with a ratio of 1: 1.5 or TP 25 and SL 30. Please decide by your self.

Target Point
The target point can be determined fix as mentioned above with a ratio of 1: 1.5 or TP 25 and SL30. Or it could also put a target around the Support/Resistance or Supply/demand line.


Summary 
The three ducks system is waiting for the price to move in the same direction in the three charts 4H, 1H and 5M. If the price moves in the same direction then entries can be done in the direction of price movement. But if Chart 4H and 1H charts or three are different then it’s mean entry can not be done. This strategy is suitable for the pair EUR / USD and GBP / USD but it can also be applied to other currency pairs. Please remember to study well in advance and use the demo account before applying this system in live trading.

Bill Williams Chaos Forex System

Oct 29, 2015

Indeed sound a little dubious, but this chaos forex systems will not make your forex account into a mess and make your mind chaotic. This forex system is very simple, and you can use standart indicator on metatrader. If you're interested to try this forex system, please try it first in your demo account until you're familiar and very sure that this forex strategy is suitable with your style.

This forex strategy can apply in any time frame, it's recommended for 4H Chart or bigger. Work on major pairs laike GBP/USD, EUR/USD etc

Setup for Chaos Indicators


  • Alligator - Three SMAs (13/8/5) with a future offset of 8/5/3 respactively.
  • Fractals - 5 bars sequence where middle one has highest High / lowest Low and its preceded and followed two bars have lower highs / higher lows. Preceded by two lower highs and is followed by two lower highs
  • Awesome Oscillator (AO) - difference between the 34-period and 5-period simple moving averages of the bar's midpoints (H+L)/2
  • Acceleration Oscillator (AC) - difference between 5/34 momentum histogram (AO) and a 5-bar simple moving average on the AO
How to trade using Chaos Forex System:


Entry: When (Alligator) lines are opening we put a buy stop one point above the most recent fractal outside of the lines in trend direction

Exit: When (Alligator) lines are closing we are closing too.we stay out of the market when and while lines are intertwining.

Adding: 
After the first fractal is taken, we take any and every signal in that direction.


AO:

We go long when AO cross zero line from negative to positive values and short on the opposite scenario.
We go long we have 3 consecutive AO bars above zero line last two having higher highs (i.e. AO pulls back for a while)

- opposite for sell

AC:

Go long after two consecutive bars above zero line
Go long after three consecutive bars below zero line -

for short - reverse scenario.




Source: Bill William Chaos Theory and www.forexfactory.com

Trade Protector EA

Sep 17, 2015

If you have an open position, but you could not keep up and had to go somewhere. Stop loss has also been installed at a certain point.

But when I went, the price has reached a certain point say profit of 40 pips. But it turns out after it turned out the price reverses and instead touch the stop loss that has been dear pairs.



The creation of this EA came after the following situation: I have opened a position, but suddenly had to leave. I have set reasonable SL, but what happened:

During my absence, my position reached 40 pips profit, then market reversed and instead of any gain, the initial SL has been hit - causing small - but unnecessary lose.

I don't like trailing stops, because when the trend is nice, let's say we have after few hours 120 pips profit. My trailing stop set to 35 pips, which was reasonable at the beginning, now can kill this nice winning trade if there would be 38% retracement.

That's why I prefer proportional trailing stop, given by the formula:

Proportional SL = | CurrentPrice - OrderOpenPrice | x Ratio - Spread

Let's say I will set the Ratio to 55%. In the example above I would get about 15 pips profit, which is better than nothing, but if the trend would continue, 40% retracement (0.38 Fib) - no matter what would be reversal point - would not stop my trade.

There is also a part which I am not certain of, but by default it is switched off. I call it Escape - when your trade reached an impressive lose, you usually would be happy to close it with even very small profit or even some - less impressive lose. So you can set a 'disturbing' level of lose after which you would like to activate this function, then profit or lose you would be happy to close that trade with. In most cases - if the stop loses are properly set, this will not be necessary, but I decide to leave it in the code, just in case.

So here we go, put this EA on M1 or M5 chart.  And setup input for this EA

  • logging=1 - if you want logs in Experts\Files directory 
  • nTrailingStop [pips] - initial trailing stop. It will be used until your trade will reach profit = nPropSLThreshold nPropSLThreshold [pips] - after reaching this profit proportional trailing stop will be used 
  • dPropSLRatio [decimal] - multiplying factor ( PropSL = Profit * dPropSLRatio - Spred ) 
  • nUseEscape [ 1 or 0 ] - escape misplaced trades as soon as they reach some minimal profit 
  • nEscapeLevel [pips] - lose size after which we want our trade to terminate as soon as it will reach next high nEscapeTP [pips] - take profit level in pips (you can set to negative value - then it will be a lose that you would be happy to get, in the case your trade reached some impressive negative pips value).

Download: Trade Protector EA


3 Step EMA Forex Strategy

Aug 21, 2014

The EMA lines are a very useful simple indicator to determine the direction of price movements, whether the trend is taking place or being ranging. When it comes to trending markets, traders have many options in regards to strategy. In this article we will see how to use EMA’s and how they can be used to create a complete strategy for Forex trends.

Talking Points:
  • EMA’s are weighted averages used in trending markets.
  • Find the trend with a 200 period EMA.
  • Time entries using a series of EMA’s utilizing smaller periods.
The EMA

Today’s strategy will revolve around the use of a series of EMA’s (Exponential Moving Average). These averages work the same as a traditional SMA (Simple Moving Average) by directly displaying an average of price for a selected period on the graph. However, the EMAs calculation incorporates a weight to put a greater emphasis on most recent price. This weight is placed to remove some of the lag found with a traditional SMA. This makes the EMA a perfect candidate for trend trading.

Now that you are familiarized with EMA’s let’s look at their uses in a trend trading plan.

Find the Trend

Before we enter into a trend based position, we need to know exactly which way that trend is heading. Below we have the GBPCAD on a 4Hour Chart. We can see the pair is making new highs while establishing higher lows, which makes the GBPCAD a strong candidate for an uptrend. This analysis can be confirmed by the use of a 200 EMA. Traditionally traders are bullish when price is above the 200 EMA and bearish if price resides under the average.

Given the information above, traders should look to buy the GBPCAD.

Learn Forex – GBPCAD 4Hour Trend & 200EMA


Timing Market Entries

Once market direction is identified, we can then use a series of EMA’s to enter the market. Below we can see that a 12 and 26 period EMA have been added to the graph. Since we are only looking to buy in an uptrend, it is important to identify areas where momentum is turning back in the direction of the trend. EMA’s can help us decipher this by identifying an area where our shorter period moving average crosses above the longer period EMA. At this point traders can look to buy the market.

Below you will find several sample buy entries using EMA’s on the GBPCAD. Remember, this process can be replicated for a downtrend by selling in the event that the 12 period EMA crosses below the 26.

Learn Forex – GBPCAD 4Hour Entries



Exiting Positions

Now that a trade has been opened, traders need to identify when it is time to exit the market. This is the third and final step in developing a successful strategy! Traders may choose a variety of stop/limit and risk reward combinations here to suit their trading needs. However, if you are already using a series of EMA’s they can be incorporated into your market exit. If we are buying on a return to bullish momentum, traders should close positions when momentum subsides. This can be found in an uptrend when price moves back and touches the 12 period EMA.

Stops should also be placed when trading with the trend. One simple methodology is to place stops under a swing high or low on the graph. This way in the event that the trend turns, any positions can be exited for a loss as quickly as possible. The graphic below will show an example of both scenarios.



Source: Walker England, Trading Instructor

The Bladerunner Forex Strategy

Aug 20, 2014

The Bladerunner forex strategy is a price action trading so it using tools like candlesticks, pivot points, round numbers and support and resistance levels when trading this strategy. But you can add more indicators if you think that they're useful or you feel more comfortable having some extra confirmation.

In this article we use the 20 EMA for confirmation indicator. Another alternative is to use the midline of the standard 20 Bollinger bands. Either works well, in fact you can use both to trade it as a Bollinger band EMA strategy.

The Bladerunner forex strategyp can be traded on any pair. It can also be traded on any time frame, but the examples below are from 5 min charts.

It can be traded at almost any time of the day, but obviously some times are more reliable than others. For example, the early part of the Asian session may provide a decent break out and retest giving an entry, whereas the Asian afternoon session can be very slow. Then, when London opens the price may be too erratic and volatile to give any reasonable entries for any strategy.

Later again, after the initial flurry of news announcements has passed and price has settled, you may once more get a reliable entry or two. You will therefore have to adjust this strategy to the times when you are able to trade it.

The strategy is named Bladerunner because the 20 EMA acts like a knife edge dividing price. If price is above the EMA, and respecting it, and retests the EMA, it will likely reject to the long side. And if price is below the EMA, and respecting it, and retests the EMA, it will likely reject to the short side. A few examples might help to clarify:







If price is below the 20 EMA, our bias is short and we would be looking for price to move up and hit the 20 EMA, reject and then move down.

However, if price pierces the 20 EMA and closes convincingly above it, we deem price to have switched polarity and now our bias changes to long. (This can be seen occurring at the right of the above picture). From now on we would be looking for price to move down and hit the 20 EMA, reject and then move up.

An example of one definite and one possible losing trade:




Essential entry parameters for this setup are:

  • Price must break out of consolidation or a range prior to entry, i.e. it must be trending
  • Price must then retest the 20 EMA successfully


What constitutes a successful retest?

If price is above the EMA it must bounce from and stay above the EMA; and vice versa for when price is below the EMA. More specifically: The first candle that touches the EMA should close on the same side of the EMA as it approached it from.

This then becomes the signal candle. Price has now rejected from the EMA and we are looking to see if the next candle confirms the move. If the next candle continues the move away from the EMA then this candle becomes the confirmatory candle. This is a simple way to trade the strategy; if you want to play it safer you could insist on a recognisable forex candlestick pattern occurring to confirm the trade.

n.b. if the Bladerunner seems simplistic, it is because forex price action and current fundamentals are factored into trading decisions. No entry is ever taken based purely on price having rejected from the 20 EMA.

Impotant Notes:

  • Always look for a confluence of reasons to enter the trade. For example, it’s safer to have more than just a rejection from the 20 EMA. Ideally, you would like to see this happening at the same place as an old support/resistance level, pivot level or other significant price impact point.
  • Always be on the lookout for impending news announcements when trading this setup, especially on the lower time frame charts. I generally will not enter any trade within 30 to 45 mins before a scheduled news event, and will always wait at least 15 mins after the event before considering a trade.
  • Always trade with the direction of the current trend, as determined by which side of the EMA or polarity indicator price is currently on.


Order Placement:

(Note: the following parameters call for spreading your entry across two orders, but nowadays I have found that it is simpler for me to just enter one position/order per trade. However, many traders prefer to have their trade split across two positions, as this enables them more flexibility in their exits.)

A suggested approach is to open 2 orders when trading this strategy. The orders are as follows:

For a long entry:

  • 2 buy stop orders are placed with entry 2 pips above the confirmatory candle.
  • Orders expire at the start of a new candle. For example, if entering limit orders on the five-minute chart, those orders will expire at the start of the next five-minute candle, unless they have already been filled by price action on the current five-minute candle.
  • The stop loss is placed 2 pips below the signal candle that touched the 20 EMA. This particular rule is not set in stone, you may place the stop behind a recent swing point if you believe that would give a more realistic stop size.
  • The take profit for the first order is set at an amount equivalent to the risk in pips. For example, if the risk in the trade is 20 pips, the first order’s take profit target will be set at 20 pips.
  • The take profit for the second order is set at an amount equivalent to double the risk in pips. So, to use the above example, the take profit on the second order would be set at 40 pips.

For a short entry:


  • 2 sell stop orders are placed with entry 2 pips below the confirmatory candle.
  • Orders expire at the start of a new candle. For example, if entering limit orders on the five-minute chart, those orders will expire at the start of the next five-minute candle, unless they have already been filled by price action on the current five-minute candle.
  • The stop loss is placed 2 pips above the signal candle that touched the 20 EMA. This particular rule is not set in stone, I may place the stop behind a recent swing point if I believe that would give a more realistic stop size.
  • The take profit for the first order is set at an amount equivalent to the risk in pips. For example, if the risk in the trade is 20 pips, the first order’s take profit target will be set at 20 pips.
  • The take profit for the second order is set at an amount equivalent to double the risk in pips. So, to use the above example, the take profit on the second order would be set at 40 pips.


Trailing stop:

Once price has moved in favour of the trade by an amount equivalent to the initial risk, one of the orders is closed (due to its reaching take profit 1 level) and the stop loss on the remaining order is moved to breakeven. Using the above examples, once price moves 20 pips in favour of the trade, the first order is closed and the stop loss on the remaining order is set to breakeven.

This remaining order’s stop is then left at breakeven until the market closes the trade, either by reaching the profit target or by stopping out at breakeven. Again, this rule is not set in stone: there may be times when you may wish to continue trailing the stop beyond breakeven, for example, when a news announcement is imminent.


Morning 2 Trendlines Forex Strategy

Mar 3, 2014

This forex strategy is very simple but it proved give profitable trade. Only use 2 lines trendline tool during in the morning or starting of the day. We recommend you have to first understand how to use the trendline line tools in Metatrader 4. And try this forex strategy in virtual account first before applied for real trading

How to Make Morning 2 trendlines

1. Open MT4 Chart on 1H time frame, recommeded pair are EURUSD or EURJPY
2. Use the line separator period to see prices from day to day
3. Pull trendline from Highest yesterday to the Highest of the first candel on this day.



4. Pull trendline from Lowest yesterday to the lowest of the first candel on this day.




Open Position Rules

After you make 2 trendlines, now wait a second candel close on this day .

1. Open BUY if second candel close above the trendline.
2. Open SELL if second candel close below the trendline
3. If the second candel doesn't close above/below the trendline, then wait for the next candel.
4. Use your money management to take profit and stop loss. You can take profit near supply and demand or support resistance line






5 Minutes Momo Forex Strategy

Feb 20, 2014

The name of the system is 5 Minute Momo Forex Strategy. This forex system was introduced at "High Probability Trading Setups for the Currency Market" By Kathy Lien and Boris Schlossberg.  It is a simple Scalping Strategy using indicators of EMA and MACD.



Setup
EUR/USD 5 Minutes timeframe
EMA period 20
MACD  (12,26,9)


Open Buy Position When:

  1. Look for currency pair to be trading below the 20-period EMA and MACD to be negative
  2. Wait for price to cross above the 20-period EMA, make sure that MACD is either in the process of crossing from negative to positive or have crossed into positive territory no longer than 5 bars ago
  3. Go long 10 pips above the 20-period EMA
  4. For aggressive trade, place stop at swing low on 5 minute chart. For conservative trade, place stop 20 pips below 20-period EMA
  5. Sell half of position at entry plus amount risked, move stop on second half to breakeven
  6. Trail stop by higher of breakeven or 20-period EMA minus 15 pips


Open Sell Position When

  1. Look for currency pair to be trading above the 20-period EMA and MACD to be positive
  2. Wait for price to cross below the 20-period EMA, make sure that MACD is either in the process of crossing from positive to negative or have crossed into negative territory no longer than 5 bars ago
  3. Go short 10 pips below the 20-period EMA
  4. For aggressive trade, place stop at swing high on 5 minute chart. For conservative trade, place stop 20 pips above 20-period EMA
  5. Buy back half of position at entry minus amount risked, move stop on second half to breakeven
  6. Trail stop by lower of breakeven or 20-period EMA plus 15 pips

Tom's Simple 7 Strategy

Feb 11, 2014

Tom's Simple 7 forex strategy using EMA indicator setting 7 (close) as a determinant in taking open position. This scalping forex strategy work good on any time frame. It's a simple strategy but good enough to read the direction of price movement. Premises should be combined with higher timeframe. And you can add your indicators if you like.


How to setup the chart:

  • Set a 7 close price EMA.
  • Set a 50 close price EMA
How to Trade

If the 7 EMA is lower than the 50 EMA trade only the short opportunities for maximum risk/reward. So if the closed candles are below the 7 EMA trade short.

If the 7EMA is higher than the 50 EMA trade only the long opportunities for maximum risk/reward. So if the closed candles are above the 7 EMA trade long.


This is a trend-based strategy. The 50 EMA is there to indicate an increasing, decreasing or consolidation trend. I would not be interested in trading this strategy in a period of consolidation.

Warning:
These instructions expect that you have basic trading experience and is not meant to teach or train you in trading derivatives or forex. With that said, you can use this method on any timframe, but since we are differentiating the positions above and below the 7 EMA that means you will have to monitor your trade constantly after you enter it.

Note:
This method was left simple to allow people to use it as I basically set it forth, but also to allow you to adjust it to meet your needs and allow room for your new ideas based on it.
 
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