STEP 1 Open up a daily chart STEP 2 Add the following indicators on the chart. - Bollinger band (20,2) - Stochastic Oscillator (5,3,3) STEP 3 Look at price touching upper or lower band for the first time. If price touches upper band, wait for following candlestick to open. If bearish enter on next candlestick opening making sure stochastic has just started heading down. If the price touches the lower band, wait for following candlestick to open. If it looks bullish then enter on the next candlestick opening, making sure stochastic has just started its way up. Note: This strategy works with any timeframe, however I find it much more accurate with the higher timeframes such as 4hr or daily. Stop loss for this strategy is placed at the nearest swing high/low. Profit taking depends on the trader. I personally use the Fibonacci expansion as a profit taking. Some of my fellow traders usually take half of their profit as price touches the other end of the band and let the remaining lot run reducing their stop loss to the nearest swing high/low.
Maybe a chart with explaination would really help clear things up.
i will explain with chart next post.... thanks for your command..
Hi fxsusan, I am awaiting for your post with chart, as it will be prove of your statement said above.
Yeah! Proven statement could be the better idea to make use of such guide.... Prove it for good benefit result!
The information given above could help the traders to find out the best way of successful trading. I would like to say that I believe that forex trading strategy should not be complicated for the traders because to trade forex successfully, its essential that you strategy should be easy, reliable, comfortable and profitable for you.Once you have a system and strategy that works, you better darn well keep using it.
It is simple and could be effective but I would ad some good S&R indicator to it. I don't like Fibs because too many use them and not that effective indication. Adding Camarilla or Jerca Pivots would be better choice.
In the nature all valid things are simple. Only we humans try to make life complicated.
In my opinion the best trading strategy should be based on experince and skills. Because the Forex market is skilled-based. Using proper risk and money management rules are an obvious part of every good trading strategy. Healthy risk and money management practicing avoid overtrading and putting every trader’s money to unacceptable levels of risk. Analyzing economic situation helps to use necessary trading strategy