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HLHB Forex Trend-Catcher System

Apr 22, 2016

HLHB System simply aims to catch short-term forex trends. It is patterned after the Amazing Crossover System that Robopip once backtested. In fact, it was one of his highest-scoring mechanical systems in 2014! The system can be applied to any pair, but since I’m into major pairs, I’m applying it to the 1-hour charts of EUR/USD and GBP/USD.

http://www.proforexstrategy.com/2016/04/hlhb-forex-trend-catcher-system.html


Chart settings
  • EUR/USD 1-hour chart or
  • GBP/USD 1-hour chart
  • 5 EMA: blue line
  • 10 EMA: red line
  • RSI (10) applied to the median price (HL/2)

Entry Rules
BUY when the 5 EMA crosses above the 10 EMA from underneath and the RSI crosses above the 50.0 mark from the bottom.

SELL when the 5 EMA crosses below the 10 EMA from the top and the RSI crosses below the 50.0 mark from the top.

Make sure that the RSI did cross 50.0 from the top or bottom and not just ranging tightly around the level.

Exit Rules

Use a 50-pip trailing stop and a 200-pip profit target. This increases the chances of the system riding longer trends. Close the trade when a new signal materializes. Close all trades by the end of the week.



Source: by Huck in babypips.com

Bearish Engulfing Candelstick Pattern

Apr 20, 2016

Bearish Engulfing is reversal type of candlestick pattern. If we detect this pattern during bullish trend period it mean trend is going to change to bearish (Reliability Medium).

http://www.proforexstrategy.com/2016/04/bearish-engulfing-candelstick-pattern.html

Bearish Engulfing Pattern is a large red real body, which engulfs a small green real body in an uptrend (it need not engulf the shadows). The Bearish Engulfing Pattern is an important top reversal signal.

How to recognize Bearish Engulfing Pattern:

  1. Market is Bullish – uptrend.
  2. We see a green candlestick in the first day.
  3. Then we see a red candlestick that completely engulfs the real body of the first day.

Profitable S/R Forex System

Apr 19, 2016

Profitable S/R Forex System is very simple forex system, but it's proven very profitable. This system is built on a powerful indicator showing important S / R zones. It show only the resistance and support on the high quality price zones only. So the indicator doesn't draw a lot of the zones, but it draws only the important ones.



However, its main advantage is that it also shows us the quality of resistance and support zones. Or rather, how many times the market tested a given zone (S / R). Here, logically, the more times the market tested the zone, the zone will be stronger and more valid.

Settings of the indicator

The indicator has more settings, but the Factor and zone_extend are the most important for us:
  • Factor = how strong S / R zones should the indicator show (default 0.5)
  • Zone_extend = whether the indicator should connect near S / R zones together (default false)

How to trade using S/R Indicator
The whole trading system can be traded on any market and any timeframe (which is a big advantage). The lower the timeframe you choose, the more you will receive signals (more trades), but logically the trades will be shorter (faster opened and closed). It is up to every trader to choose the trading style that suits him.

The trading system is very simple and consists in the search for strong S / R levels (those which have been tested by the market at least once, but ideally 2 to 3 times).

Once the price hits the strong S / R zone (previously tested by the market), I open a trading position against the direction of the market (I use limit orders). Then I hold the trade until the price reaches the opposite S / R zone.

Buy trade:
Price reaches the strong support (must be tested at least once). Open the buy trade. Set TP below the closest resistance. The SL is the same amount of pips from the entry price as TP.

Sell trade:
Price reaches the strong resistance (must be tested at least once). At that moment, open the sell trade. Set TP above the nearest support. The SL is the same amount of pips from the entry price as TP.

Download : Support and Resistance S/R Forex Indicator



Source: Hcooper from Forexfactory.com

Support and Resistance Forex Indicator

Jan 22, 2016

Support and resistance forex indicator is very useful to create S/R zone lines. With this indicator it will automatically create zones of S / R with high potential in your Metatrader charts. This indicator is suitable for trading reversal.

http://www.proforexstrategy.com/2016/04/support-resistance-forex-indicator.html


This indicator will also tell you where the line S / R has been tested and where the lines are newly formed. The point is the more times the market tested the zone, the zone will be stronger and more valid. And it meand there is a great opportunity to generate profits in trading reversal.




How to use this forex indicator please visit Profitable S/R Forex System

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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
 
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