Daily Profit Forex Trading Strategy

  October 05, 2019    sniper

Sometimes the simplest forex trading strategies can allow you to make daily profits in the forex market and once such forex trading strategy is the Daily Profit Forex Trading Strategy.
It is  a very simple forex trading system really suitable for beginners as well as even advanced forex traders can find it useful.

What You Need

To trade this daily profit forex trading strategy,
  • you need to have this indicator, hotpips. Here’s the download link: HotPips
  • the timeframes for trading: preferably the 1 minute, 5 minute and 15 minute charts
  • the trading sessions: only the London and US
  • Currency pairs: only low spread currency pairs like EURSUD, GBPUSD, USDJPY, AUDUSD, USDCHF

Buying Rules

  1. Hotpips indicator red/blue histogram must be above the 0.00 level. This means its an uptrend (completely ignore the green histogram)
  2. next thing is wait till you see a yellow arrow pointing up.
  3. open a buy trade.
  4. place your stop loss a few pips (2-3) pips below the most recent support level. This ensures that you do not get stopped out prematurely.
  5. For your take profits, exit the trade when the risk to reward is 1:2 so if you risked 10 pips, then your take profit should be 20 pips.

Selling Rules

  1. Hotpips indicator red/blue histogram must be below the 0.00 level. This means its a downtrend (completely ignore the green histogram)
  2. next thing is wait till you see a light blue arrow pointing down.
  3. open a sell trade.
  4. place your stop loss a few pips (2-3) pips above the most recent resistance level. This ensures that you do not get stopped out prematurely.
  5. For your take profits, exit the trade when the risk to reward is 1:2 so if you risked 20 pips, then your take profit should be 40 pips.

Daily Profit Forex Trading Strategy Trade Setup Example

Here’s a chart showing you the trade setups and should give you an idea of how to trade this forex trading system:


Disadvantages of the Daily Profit Forex Trading Strategy

  • this is a trend trading strategy so if you encounter a ranging market, you will get false signals so if you think you are in a trending market, don’t trade.
  • you can notice on the chart above that buy and sell signals come in late after price has moved a great deal.
  • your stop loss distance can be quite large therefore this can reduce the amount of contracts you trade as well as reduce your risk:reward ratio a fair bit

Advantages of This Daily Profit Forex Trading Strategy

I can see only one good advantage of this forex trading strategy:
  • in a solid trending market, you can make a lot of profitable pips very easy.

  

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30PIPS A DAY STRATEGY

  October 05, 2019    sniper

If you’d like to earn 30 pips a day then this 30 Pips A Day Forex Trading Strategy is a trading system you can try out.
In order to trade this system, you need the following:
  • Indicators: You need two exponential moving average indicators for this trading system and they are used for trend identification: 10 ema and 26 ema.
  • Timeframes: 5 minutes
  • Currency Pair: GBPJPY only


Background Of 30 Pips A Day Trading System

Basically, when 10 ema crosses 26 ema and goes up, that’s an uptrend. If 10 ema crosses 26 ema and goes down, that is considered a downtrend.
We know that GBPJPY is a volatile pair and price can travel on any given day from 100-200 pips. Therefore, the aim is not to capture all that price move during the day but just a little part of it, something like 30 pips and that’s where the 30 pips trading system comes in.
You also need to know something called the traders action zone.
Here’s the thing with trader’s action zone: it is  a reversal zone…that’s where price is most likely to reverse and therefore this is the  zone of buying or selling depending or what the market main trend is at the moment.


For example, if the market main trend is is down, there will be times when you will see price go up (even thought the main trend is down) and this is a minor rally in a downtrend market.
That price rally (upward price move) is most likely to end in a traders action zone when you will see price fall back down to follow the main trend.
A similar but opposite situation also happens if the market is in an uptrend. You will see price fall back down but this downward move is often temporary. As soon as price hits the traders action zone, it goes up to follow the main trend which is uptrend.

30 Pips A Day System Sell Setup

  1. you see 10 ema crossing 26 ema and goes down.
  2. you do not sell immediately when the ema have a cross over, you wait for a retrace.
  3. sell immediately at market when a candlestick crosses into the traders action zone halfway between the 10 ema and 26 ema.
  4. place stop loss at 15-20 pips
  5. take profit target is 30 pips

Buying Setup for 30 Pips A Day Strategy

  1. you see 10 ema crossing 26 ema and goes up.
  2. you do not buy immediately when the ema have a cross over, you wait for a retrace.
  3. buy immediately at market when a candlestick crosses into the traders action zone halfway between the 10 ema and 26 ema.
  4. place stop loss at 15-20 pips
  5. take profit target is 30-40 pips

Another Option To Trade The 30 Pips A Day Trading Strategy

  • Once a candlestick enters the traders action zone, watch for a bullish or bearish reversal candlestick as your buy or sell signal.
  • then place a buy stop or sell stop pending order above the high and low respectively.
  • place your stop loss order a few pips below the high/low of that reversal candlestick once your order is activated but if you see that it is too close, then see if there’s a nearest swing high/low nearby where you can place you stop loss there.

Disadvantages of this 30 Pips A Day Trading System

  • in an ranging or flat market, you will have many false signals.
  • if you trade during the Asian trading session, you need to reduce your take profit target to 20 pips  etc because generally, GBPJPY does not much much like it does on UK and New Your Trading Sessions.
  • stop loss can be easily hit if its too close as the spread on GBPJPY currency pair can be 3-4 pips so when you place your stop loss using this system, you should be thinking about placin it in a place where it wont get hit easily.

Advantages of this 30 Pips A Day Trading Strategy

  • volatile nature of GBPJPY forex pair means that profit target can be easily hit.
  • in a good strong trending market, this trading system will work really well.

  

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TREND-LINE STRATEGY

  October 05, 2019    sniper

Trendline Trading Strategy-Sell At Top Buy At Market Bottom


The Trendline Trading Strategy is a  forex price action trading system that is designed to trade the price bounce off the trendlines.
You will notice on your charts that price does two things when it comes to a trendline:
  1. it bounces off it which means it obeys the trendline or
  2. it breaks it…and when it breaks it, you can use the trendline break forex trading strategy to trade it.
This strategy is about how trade when prices bounce off the trendline.
In order for you to use the trendline trading system, you need to know how to draw a valid or proper trendline.


HOW TO DRAW TRENDLINE


You need a minimum of two lower swing high peaks to draw a downward trendline (to show market in a downtrend) and two higher swing lows to draw an upward trendine (to show market in an uptrend) like the chart show below.


When price come to the trendine and touch it on the 3rd, 4th, 5th peak or lows etc…that’s when you buy or sell.
For more information on how to draw a trendline, check this out:how to draw a trendlines the right way in 2 simple steps.
Timeframes: Any
Currency Pairs: Any
Indicators: No forex indicators are required but you should know your reversal candlesticks patterns, as they are very helpful in giving you signals to buy or sell when price touches the trendlines.

BUYING RULES

  1. Draw an upward trendline connecting a minimum of 2 higher lows (or higher swing lows)
  2. Wait for price to come come and touch the trendline at some stage down the future
  3. Place a buy stop order 2-5 pips above the high of the candlestick that touches the trendline
  4. Place your stop loss 2-5 pips below the low of that candlestick
  5. Place your profit targets  on previous significant lower swing highs (or peaks) that you see on the chart or aim for risk:reward of 1:3



SELLING RULES

  1. Draw a downward trendline connecting a minimum of 2 lower highs (or lower  swing highs)
  2. Wait for price to come come and touch the trendline at some stage down the future
  3. Place a sell stop order 2-5 pips below the low of the candlestick that touches the trendline
  4. Place your stop loss 2-5 pips above the high of that candlestick
  5. Place your profit targets  on previous significant higher swing lows (troughs) that you see on the chart


TRADE MANAGEMENT

Here are some trade management techniques which you can use:
  • lock profits by trail stopping it by moving your stop loss and placing it behind swing high or lows so there is less chance of you getting stopped out prematurely if you plan to ride out the trend.
  • move stop loss to break even if price moves by the amount risked.
  • consider closing half of your position if price moves by twice the amount risked and let the other to run or to hit your take profit target.

DISADVANTAGES OF THE TRENDLINE TRADING FOREX TRADING STRATEGY

All forex trading strategies have weaknesses and the trendline trading strategy is no exception:
  • price can break and not obey the trendline.
  • sometimes, price will just come within a few pips of the trendline and not really touch it and move away.
  • sometimes, price tricks by breaking the trendline only to reverse later and obey the trendline.
So you should be aware that such things can happen and expect them.

ADVANTAGES OF THE TRENDLINE TRADING STRATEGY

  • the risk to reward ratio of the trendline trading strategy is really great.
  • its based on price action.
  • if the setup is good, you can sell at the very top and buy at the very bottom of the price swing whilst keeping a very tight stop loss which really also has a very less chance of getting stopped out prematurely.



  

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Fibonacci Retracement Levels in Day Trading

  October 03, 2019    sniper

Moves in a trending direction are called impulses, and moves against a trend are called pullbacks. Fibonacci retracement levels highlight areas where a pullback can reverse and head back in the trending direction, making them helpful in confirming trend-trading entry points.

Origins of Fibonacci Levels

Fibonacci levels are derived from a number series that Italian mathematician Leonardo of Pisa—also known as Fibonacci—introduced to the west during the 13th century. The sequence starts like this:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89...
Each new number is the sum of the two numbers before it. As the sequence progresses, each number is approximately 61.8 percent of the next number, approximately 38.2 percent of the following number, and approximately 23.6 percent of the number after that. Subtract 23.6 from 100, and the result is 76.4.
These are Fibonacci retracement levels: 76.4, 61.8, 38.2, and 23.6.

The Relevance of Sequence

What Fibonacci and scholars before him discovered is that this sequence is prevalent in nature in spiral shapes such as seashells, flowers, and even constellations. As a spiral grows outward, it does so at roughly the same rate as the percentages derived from the Fibonacci ratios.
Some believe these ratios extend beyond just shapes in nature and actually predict human behavior. The thinking is that people start to become uncomfortable with trends that cause changes to happen too rapidly and adjust their behavior to slow or reverse the trend.
For example, if someone starts out with $100 in his wallet, he will begin to slow his spending—or stop altogether—once he has spent about $61.80 and has only about $38.20 remaining.

How to Use Fibonacci Retracement Levels

When a stock is trending very strongly in one direction, the belief is that the pullback will amount to one of the percentages included within the Fibonacci retracement levels: 23.6, 38.2, 61.8, or 76.4. Some models also include 50 percent.
For example, if a stock jumps from $10 to $11, the pullback should be expected to be approximately 23 cents, 38 cents, 50 cents, 62 cents, or 76 cents. Early or late in trends, when a price is still gaining or losing steam, it is more typical to see retracements at the higher percentages.
If your day trading strategy provides a short-sell signal in that price region, the Fibonacci level helps confirm the signal. The Fibonacci levels also point out price areas where you should be on high alert for trading opportunities.
Using a Fibonacci retracement tool is subjective. There are multiple price swings during a trading day, so not everyone will be connecting the same two points. The two points you connect may not be the two points others connect.
To compensate for this, draw retracement levels on all significant price waves, noting where there is a cluster of Fibonacci levels. This may indicate a price area of high importance.

Retracement Warnings

While useful, Fibonacci levels will not always pinpoint exact market turning points. They provide an estimated entry area but not an exact entry point.
There is no guarantee the price will stop and reverse at a particular Fibonacci level, or at any of them. If the price retraces 100 percent of the last price wave, the trend may be in question.
If you use the Fibonacci retracement tool on very small price moves, it may not provide much insight. The levels will be so close together that almost every price level appears important. 
Fibonacci retracements provide some areas of interest to watch on pullbacks. They can act as confirmation if you get a trade signal in the area of a Fibonacci level. Traders don't need to use them.
Play around with Fibonacci retracement levels and apply them to your charts. Incorporate them into your trading plan if you find they help your trading.

  

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How to make consistency profit in Forex trading

  September 05, 2019    sniper

   How to make consistency profit in Forex trading ?

"When it comes to trading this is headaches for may Traders you make money today and loose all next day"

SO HOW TO MAKE MONEY CONSISTENTLY?

STICK TO YOUR STRATEGY

First stick to your trading strategy and follow it with discipline don't take a  trade  without any reason toke it.There is several trading strategy choose and test your strategy before staring trades.
Don't start trading without testing your strategy 
WHEN YOU STICK AND TEST YOUR STRATEGY YOU WILL BE CONFIDENT TAKE YOUR TRADE AND CONTROL YOUR EMOTION


RISK PER TRADE

Calculate your your risk in every trade that you know how much you are willing to loose in single trade ,because trading is all about risking if you risk all your capital in single trade your account can be wiped out.Calculate your risk and set YOUR SL.

REWARD RATIO

Even if you calculate your risk and and Fail to use good reward ratio you can't make make money consistently.
What is reward ratio.
There is 1:2 reward ratio 1:3 etc...
Example:
If you take BUY TRADE IN EURUSD set you TP 30pips and 10 pips this 1:3 Reward ratio this means if you win one trade it will need to loose 3 trades to all money you get in on trade
SO IF YOU TAKE 5 TRADES PER DAY AND 3TRADES GO TO SL AND 2 TRADES GO TO TP  YOU WILL LOOSE ONLY 30PIPS AND GET 60PIPS .

USE GOOD BROKERS THIS ONE IS RECOMMENDED BROKER EXNESS

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How to use Simple moving(SMA) average in Forex trading

  September 05, 2019    sniper

A simple moving average (SMA) is the simplest type of moving average in forex analysis.
Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices and then dividing that number by X.
Confused???
Don’t worry, we’ll make it crystal clear.

Calculating the Simple Moving Average (SMA)

If you plotted a 5 period simple moving average on a 1-hour chart, you would add up the closing prices for the last 5 hours, and then divide that number by 5.
You have the average closing price over the last five hours! String those average prices together and you get a moving average!
If you were to plot a 5 period simple moving average on a 30-minute chart, you would add up the closing prices of the last 150 minutes and then divide that number by 5.
If you were to plot the 5 period simple moving average on the 4 hr. chart… Okay, okay, we know, we know. You get the picture!
Most charting packages will do all the calculations for you.
The reason we just bored you (yawn!) with a “how to” on calculating simple moving averages is because it’s important to understand so that you know how to edit and tweak the indicator.
Understanding how an indicator works means you can adjust and create different strategies as the market environment changes.
Now, as with almost any other forex indicator out there, moving averages operate with a delay.
Because you are taking the averages of past price history, you are really only seeing the general path of the recent past and the general direction of “future” short-term price action.
Disclaimer: Moving averages will not turn you into Ms. Cleo the psychic!
Here is an example of how moving averages smooth out the price action.

YOU MAY READ:How-to-trade-triangle-chart-patterns




On the chart above, we’ve plotted three different SMAs on the 1-hour chart of USD/CHF. As you can see, the longer the SMA period is, the more it lags behind the price.
Notice how the 62 SMA is farther away from the current price than the 30 and 5 SMAs.
This is because the 62 SMA adds up the closing prices of the last 62 periods and divides it by 62.
The longer period you use for the SMA, the slower it is to react to the price movement.
The SMAs in this chart show you the overall sentiment of the market at this point in time. Here, we can see that the pair is trending.
Instead of just looking at the current price of the market, the moving averages give us a broader view, and we can now gauge the general direction of its future price.
With the use of SMAs, we can tell whether a pair is trending up, trending down, or just ranging.
There is one problem with the simple moving average: they are susceptible to spikes.
When this happens, this can give us false signals. We might think that a new currency trend may be developing but in reality, nothing changed.
In the next lesson, we will show you what we mean, and also introduce you to another type of moving average to avoid this problem.

  

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