Does your forex trading system lose money? It is time for a huge change in your trading. You need very good forex trading strategies and systems in order to succeed in this business of forex trading. You now have the ability to learn how to trade from a full time forex trader and start to identify high profitability trading setups.
Trading price action to me is the best. Once you get a hold of it “price action” consistent money making is not far fetched. There is no 100% profitable forex trading system or forex trading strategy though, but if you have a 70-80 percent accurate forex trading system or forex trading strategy, then you are on the verge of success.
A forex trading system or forex trading strategy with a good winning percentage will be rewarding psychologically, keeps your morale and confidence high and is enjoyable to trade. A string of profits will build your confidence. In search of a forex trading system or forex trading strategy with no losing trades? Forget forex trading and find another business. My goal is to keep losses small and wins should be larger than losses.
A forex trading system is a combination of either two or more technical indicators or fundamental indicators or both (fundamental and technical indicators) to determine to a greater extent the movement of the market.
One thing for sure, you can count on these tested trading systems to select the right entries and exits. Continuous and careful usage brings about mastery. You will be able to see patterns and formations over time.
Let’s see this simple but powerful trading system that I have been using profitably over the years.
Setting up our platform
We will be using:
Bollinger bands set to Period 20 Deviations 2
Stochastic Oscillator set to %K 9 period %D 3 period Slowing 3
Any time frame and all currency pairs.
I discovered long time ago that the combination of Trend and Oscillator indicators makes a wonderful and more profitable forex trading system or forex trading strategy.
If I was selling this to you, I would have given you a 30 days money back guarantee, but fortunately for you I am giving it out for free, so thank your star for been here. Let’s move on.
Do you still remember how to insert indicators as taught in our introductory class?
Well, let’s just freshen things up.
Click on the insert menu from your platform menu bar
Highlight Indicators, highlight Trend click on Bollinger Bands
Set period to 20, shift to 0 and Deviation to 2, you may want to change the color of your bands by clicking on the down arrow of the styles and thickness as well. Finally click on OK
Once you are done with that, go to Insert again Highlight Indicators, highlight Oscillators click on Stochastic Oscillator set %K period to 9, period %D to 3 and Slowing to 3.
Your chart should look like the one below
Fig.forex trading system.
Candle patterns:
Bearish engulfing pattern. Occurs in an uptrend and is suggesting a possible downward (sell) change in direction. You can see the first candle been completely swallowed up by the second candle.
Now if you studied your pattern very well you should know that the red (white) candle is bearish candle and the green (black) is the bullish candle. You can always change the colors to suit you by right clicking on your forex trading platform and then clicking on properties and making the necessary changes, then OK.
Fig. bearish engulfing pattern.
Bullish engulfing pattern. Occurs in downtrend and is suggesting a possible upward (buy) change in direction. You can see the first candle been completely swallowed up by the second candle.
Fig. bullish engulfing pattern
Pin formation:
Fig. pin formation
If you are at a loss on these candle formations, I will advise that you visit
www.onlinetradingconcepts.com to learn more and dash back here again.
If still at a loss after your visit to the above site, leave your questions using the comment
The Setup
Looking to sell:
1) The first thing we are looking for is a very near touch of the upper Bollinger bands
If that is established
we then
2) Check the Stochastic to see if it is in over bought region i.e. over the 80 line.
Entry Confirmation: Be on the look out for a pin or bearish candle pattern formation.
Once it forms, pull the trigger with the stops at the previous
Fig. Sell setup click on it for a larger view
Looking to buy:
1) The first thing we are looking for is a very near touch of the lower Bollinger bands
If that is established
we then
2) Check the Stochastic to see if it is in over sold region i.e. below the 20 line.
Entry Confirmation: look out for the formation of a pin or a bullish engulfing pattern.
Once any of them forms, pull the trigger with stops at the previous low.
Fig. buy setup click on it for a larger view
Do more search on other candle patterns to learn more and be more armed.
Note: Always wait for the candle pattern to close before entering the market.
We shall study another system once you are okay with this.
Meanwhile go to the forex trading tips section to learn more successful trading tips, while you apply this trading system.
