Friday, September 6, 2019

best forex trading strategy for beginners

for each and every strategy i create by putting together 2 things Conditions and entry for that strategy first with conditions i create some specific rules i need to be met in order to consider entering the trade and then of course wait for the right entry .for the purpose of this blog i'm going to discuss one of my favorite strategies which is a reversal strategy meant to capture the shift in trend first hand .so first let's take a look at the conditions to enter a trade based on the reversal strategy 
Condition number one  i need a trending market so now let's define a trending market 

now in this chart we see the EURUSD hourly chart and we see that it's in a bearish trend and how i define that first price is below the 50 ema and also forming a lower low lower close , so now our first condition is met lets see what's next .

Condition number two is for price to break above the recent outside return and above the 50 EMA which indicate that this trend starting to reverse , now we need to make sure to have a specific rule for the pull back like we need to have at least two candles forming a higher high 
now the next step is to wait for price to break above that previous pull back and also above the 50 EMA 
AS we move forward we see here price did break above the 50 EMA and also the most recent outside return now it's time to move to our next condition .
Condition 3 : price must form a 2 candle pull back that doesn't close below the 50 EMA and also in the form of a lower low as we see below 
Alright so now all our conditions are met all we need to do is to enter the trade but how ..?
In this case we need to create an entry rule to make sure that we are consistent in our approach 
My favorite entry would be waiting for a higher high higher close candle which mean i need a candle that breaks and close above the previous one as we see below 
Now everything is set to enter the trade all we need is to place a stop loss below the low and target we can test for different places to take target at  
at last make sure to watch this video which explain all the steps we discussed https://www.youtube.com/watch?v=81KbYCpKIS8

No comments:

Post a Comment

FRANCE VS TURKEY preview and predictions

While they have scored five goals fewer than the world champions after seven group games, the Crescent stars remain neck and neck thanks to...