Forex Trend Trading Made Easy
I have just finished watching the LIVE broadcast of the Complete Solar Eclipse. What an awesome view and experience! I have written a forex strategy on how to conduct forex trend trading using this easy method.
If you have been trading currency for quite some time or have been reading books on forex trading, you will understand the importance of forex trend trading. There is nothing more profitable than being able to trade with the forex trend.
If you are a new trader, you should definitely avoid trading against the trend as it is very easy for the market to move against you in a moment and eat up all your profit.
Here is my forex trend trading system:
Step 1: Depending on your type of trading method, you can setup your chart accordingly
- Scalper: 5min, 15min
- Day Trader: 5min, 15min, 60min, Daily
- Position Trader: 60min, Daily, Weekly
Step 2: Setup your indicators as follow on every chart
- Parabolic SAR
- 50 & 200 EMA
Step 3: Do your top down forex chart analysis
- Starting from the higher timeframe, you can observe the trend from using EMA crossover techniques
- Do your trend observation for all your timeframes to establish an overall current trend direction
- Do note that higher timeframe will always have higher weightage over lower timeframe.
Step 4: Move to your second lowest timeframe to look for trading opportunity.
- If the trend is up, you should wait for stochastics to be oversold and started to curve upward
- (Do not enter a trade as yet)
Step 5: Move down to your lowest timeframe to look for best forex opportunity.
- At your lowest timeframe, wait for a MACD to cut through its trigger line which is accompanied with a trend line break
- Do not enter until you have a final confirmation which is the flip in parabolic SAR.
With the confluence of these events, you can then confidently enter a trade in accordance to the forex trend you have established in your first step.
Here is my forex trend trading system and hope you can benefit from it. Do not trade this forex trend trading system immediately on your live account. Always try out any new system on a demo account first until you are good at it before moving to your live account.
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