Dec 25 2019 4
To make it in the forex market, besides working with the best forex brokers, traders must find a suitable forex trading strategy that can help them make the most. Since the start of this market, there have been hundreds of strategies created by forex traders. From the most elementary ideas, people upgraded simple strategies to complicated and unique ones. The possibilities are endless. You can easily find some forex trading strategies pdf if you're really looking. Today, we want to share with you one of the simplest forex strategies that can guarantee profits daily.
The simplest forex trading strategies pdf
This forex trading method is based entirely on the three EMAs as follows:
- EMA 15 (gold)
- EMA 30 (green)
- EMA 60 (brown)
Exponential Moving Average (EMA) is one of two types of Moving Average (MA) - the average price of the closing price of a certain digital currency pair in an optional X period.
The EMA is calculated by the exponential formula, which is especially important as the nearest price movements. As a result, the EMA is quite sensitive to short-term fluctuations. The signals will occur faster than the SMA, helping traders quickly identify the reversal signals from which to react more quickly to short-term price movements.
However, EMA can also be viewed as a double-edged sword when the price is flat. Traders get the wrong signal and get the new trend wrong, but actually it's just normal fluctuations.
Not to mention, since the EMA is too sensitive to the latest price movements, traders can easily fall into bull trap patterns.
Learn more about:
These three basic EMAs are the basis for determining whether the current market is in a particular trend and there are enough factors for traders to trade?
Identify market trends based on EMA
To determine if the current market has a trend or not? Traders need to use the EMA 30 and EMA 60, when the market is in an uptrend, the EMA 30 will be above the EMA 60 and the price must be above the EMA 30. On the other hand, when the market is in a downtrend, The 30 EMA will be below the 60 EMA and the price should be below the 30 EMA.
Find conditions to enter the order when the market agrees
Once the main trend of the market has been identified, the traders determine the appropriate entry point, using the EMA 15 to determine the appropriate entry time. Specifically, in an uptrend, when the price exceeds the EMA 15, this is the time to enter the order.
How to add indicator to MT4 platform
As for the pre-installed indicators on this software, there are 2 ways to add the indicator to MT4. That is:
- Click on the “Add Indicators” icon on the top toolbar to see a list of available indicators.
- Or select these indicators when clicking on “Insert” and selecting “Indicators”.
These indicators are classified into different categories, such as Trends, Oscillators and Volumes. Once an indicator is selected, the trader has the option to change the input variables, or use the default settings. The indicators will then appear on the price chart.
For the indicators that have not been installed on your MT4 platform yet. Follow these steps:
Step 1: Download the indicator to your computer
Note, for the most part, when you click to download a custom mt4 indicator, by default it will automatically download to the “Downloads” folder in your computer.
But if you click to download and a small pop-up screen pops up asking you where to save the file, save it to the Desktop.
Step 2: Go to your Mt4 Trading Platform and click “Open Data Folder” to open the MT4 data folder.
Step 3: Click open folder “MQL4” on Mt4
Step 4: Click Open “indicators” folder on Mt4
Step 5: Paste the Custom MT4 Indicator to be added to the “Indicators” Folder
Step 6: Close the MT4 trading platform and then restart it
After saving your custom mt4 Indicator to add in the appropriate “indicators” folder, you need to close your open MT4 trading platform and restart it.
With news trading strategies, you need to wait until the news is released, then watch the market's reaction and look for a reasonable entry point.
For example, the Reserve Bank of Australia announced an interest rate increase of 3 to 3.25%, which caused the Australian dollar to rise hundreds of pips in just a few minutes. And with this trading system, you need to wait for a few bullish candles to form before starting to enter.
- Access Forex News and keep track of when the news is released.
- A few seconds after the news is released, update the forexfactory to keep track of the numbers and data in the news.
- If the news is good for the base currency, the price will go up; If it's bad news, the price will drop
- Switch to the 1 minute time frame and watch the price move through bullish/bearish candles
- Set up your order:
- For the Buy setup, if the news is good and the currency goes up, you will see the following candles are higher than the previous one, reaching a certain level, the reversal is slightly down. When the next candle turns bullish again, breaking the high of the previous candle (the bottom), you place a buy order
- For the Sell setup, there is a high chance that the market will fall in price. And you wait for the second candle to complete.
- Place stop loss 15 pips away from your entry and take profit at 45 pips (risk/profit ratio is 1/3)
What is MA?
Moving averages (MA) are interpreted as a moving average of a series of prices over a given period of time.
The MA curve is a very popular vehicle in many technical securities analysis that any technical analyst should not overlook. Thanks to that, investors are aware of buy and sell signals.
The moving averages are commonly used:
- The SMA (or Simple Moving Average) is a simple moving average that is calculated as the average of the closing prices over a given trading period.
- The EMA (or Exponential Moving Average) is the exponential moving average that is calculated using an exponential formula, which weighs the nearest price movements. Therefore, EMA is quite sensitive to short-term fluctuations, recognizing abnormal signals faster than the SMA to help investors react more quickly to short-term price movements.
- The WMA (or Weighted Moving Average) line is a linear density moving average, which will focus on the parameters with the highest frequency of occurrence. This means that the WMA weighted moving average will weigh heavily on price movements with large volumes of transactions, taking into account the quality of money flow.
Note: It is necessary to combine with the indicators of the purchasing power and selling power of the market to be alert to the markets that are overbought or oversold. Because in this case, the market can reverse at any time.
Here is something to pay attention to:
One of the forex trading tips that I'd like to share is to avoid the psychology of hastiness when entering the order, leading to the case of panic when determining the trend of the market. Traders should focus on market research at least 30 minutes before trading. Study the number of transactions in a day that best suits your forex strategy to protect your capital and health.
The advantages of daily trading strategies
The daily forex strategy is quite simple and basic, traders often take advantage of news that impacts the market to trade, and there are a number of traders who use the indicator method to trade. Unlike scalping or swing trading, daily traders often spend less time and do not spend much time analysing the market.
Scalping and swing trading are time-consuming.
On the other hand, scalping and swing trading take traders a lot of time to analyse the market, adverse factors such as bad news, negative trading sentiment also negatively affect traders.
Daily trading will save time and reduce negative psychology for traders. It is one of the successful forex trading strategies PDF.
This is true, because when you use technical analysis to analyse market trends for the day or a few days, even a week to give signals to the order you will no longer be negative psychology, not be It takes a long time to place orders or monitor the market. The forex trading strategy for daily trading is also quite simple and not dependent on too many indicators.
The best trading strategy?
There is no strategy that can work forever. The effectiveness of a forex trading strategy depends on market conditions. The market is changing constantly. Therefore, how well a strategy works really depends on the flexibility and knowledge of the trader. That's why the best traders never stop learning from the most successful traders.
So where can you learn from the most profitable? Just follow them on the social trading platforms. Social trading platform is the place where traders exchange their experience with each other and you can copy the strategies of the best there. One of the best social trading platforms today is Exness social trading platform. The number of Exness active traders last month was more than 100,000 traders. Moreover, the total trading volume of Exness is $785 billion per month. This makes Exness a huge social trading platform in the market. You can learn a lot there.
Check out Exness social trading platform now.
How to choose the most suitable trading strategy for you?
With the above forex trading strategies, you must be feeling confused because you do not know which strategy is right for you. Don't worry. Determining whether a forex strategy is right for you is not really that difficult.
You just have to ask yourself the questions. After answering them, you will know the answer. Factors you need to know include:
- Determine your forex investment purpose
- Determine when the transaction is available to you.
- Consider a number of other factors including: how big or small your trading capital is, how much or less you have trading experience and your habits, preferences and risk tolerance.
Once you have identified the above, it will be easy for you to figure out which forex trading strategy is best for you. There is no single best forex strategy. The best forex trading strategy is the one that suits the trader best.