Forex Strategy "Positional medium-term" is based on the simple moving average SMA and at important levels, as well as the trend lines for trade recommended pair - EURUSD.
Because This "positional forex strategy" - that the main condition for trade -the presence of a trend, and the opening position is the movement of the trend. And since it is "medium-term", the only suitable for trade daily charts, and analysis will be conducted on the weekly charts.
Because trade is conducted in large intervals, then it is possible it will not all fit because of the small size of the deposit, but in any case if you want to trade - use micro or Cent accounts (company Forex4you good fit), as well as it should be remembered that the risk of each transaction must not be more than 3-4% of the deposit.
And so on the chart you must set the following indicators forex:
1) Simple Moving Average - SMA:
- In the interval W1 of (weekly): SMA (4) - color red, SMA (8) - color blue, the SMA (40) - the color green dotted (optional);
- In the range of D1 (daily): SMA (5) - the color red, the SMA (20) - the color blue, the SMA (50) - the color green dotted (optional);
2) Important price levels are determined by visual observation by area cluster of price bars.
3) trend line support and resistance should be built precisely on minimumalnym or maximum prices of candles.
Opening a trading position is made if:
- SMA (4) and SMA (8) and the interval W1 moving average SMA (20) on the interval D1 in the same direction the same direction and indicate the trend in the market;
- If the trend is up, then the price should be higher than the data simple moving averages, and on the other hand, if the trend is falling, then the market price should be lower than the data simple moving averages.
Trading signals for the transaction (checking the availability of trading signals and the opening of trade position is just 1 per day - better in the evening):
- SMA (5) on the daily range has been directed against the main trend or horizontally and turned in the direction of the trend;
- SMA (20) in the range of D1 was directed against the main trend or horizontally, and its price has crossed and closed above (to buy) or below (for sale) in the direction of the main trend in the market.
Closing the trading position of forex strategy "Positional medium-term":
- Safety stop-loss at the opening of trading positions must be set equal to the previous value of the local maximum or minimum on the daily chart + reserve 10 pips.
- Subject to the achievement of an open position profit of 30 pips - it is necessary to move the stop-loss order on the value of + 5 pips. You can also use a standard trailing stop (30) for this purpose.
- After the formation of a local minimum or maximum (fractal) in the direction of the trend you need to rearrange stop-loss under it or over it, depending on the direction of trade.
