Hakeem's Intraday Method
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Here is a trading method which you can use to trade the forex markets with ease and stress-free, if I can allow myself to say so of course. The method I will be describing here is a a time specific method, we will only be looking for a trade opportunity after r 2300 Eastern Time. Whatever happens before this time, we do not take it into consideration at all. Firstly, we will need to determine the trend currently prevailing, then after that we will need to look for entry opportunities using two moving averages.
The trading method will work with any pair, however, we will stick to the major pairs as they are the pairs which give the best moves. We will only work on the M30 timeframe. Not any lower that this.
Determining the trend
As I have already said above, we need to determine the current trend and we will do that with the help of two popular indicators, the MACD and the RSI. Set up your charts as follows:
1. Place the MACD indicator with settings of 8,18,9
2. Place the RSI indicator with setting of 21 with a level of 50
After we are set, then we can interpret the reading from these 2 indicators to determine the trend and this will not be as hard as you might be thinking. If the MACD slow is above 0 and the RSI is above 50, then the trend is going up and if the MACD slow is below the 0 line and the RSI is below the 50 level, then the trend is going down. This is it and we are done on this part.
Finding the entries
After we have determine the trend direction, now we are going to take trades ONLY in the trend direction. But before taking these trades, we need to find the trade entries. We are going to use two moving averages to determine the trade entries. First, place these indicators on your chart:
1. Place an EMA 5 on Close, color Blue
2. Place an EMA 6 on Open, color Red
If the Blue EMA crosses the Red EMA and goes ABOVE it, then we have a LONG entry signal, and if the Blue EMA crosses the Red EMA and goes BELOW it, then we have a SHORT entry signal.
This is entries are infact very easy to find out... The only most IMPORTANT of all is, to only take trades in the deirection of the trend and negelct the opposite signals.
TakeProfit and Stoploss
We will keep a tight fixed stoploss 5-10 pips below the most recent low before the cross of the EMA. As for the takeprofit, we will use a trailing stop of 15 pips. However, you are free to experiment with other methods, for example, you can also use a fixed takeprofit on the 161% extension of the fibonacci level. Tweaking and playing around with the method is very good. Hope you had a good read and will enjoy the trades, Good Luck