WebNow, what is this trading strategy? This is a simple yet highly profitable forex trading strategy. The focus of this strategy is to cut our losses short and gain as much as Web5/7/ · K subscribers. In this video, I will walk you through a simple forex trend-following strategy that I've been trading in the markets profitably for some time! We'll Web8/11/ · Simple Profitable Forex Trading Strategy. it's a lot of getting familiar with the pair that you're trading another thing that i suggest is actually using multiple indicators Web31/10/ · Building a profitable trading strategy – Complete guide. If you go to the internet, you will often find trading to be represented as the “ escape” or something ... read more
The 4-hour chart is used for all of the 5 steps, besides the filter chart which uses the daily time frame. This strategy uses the Tenkan and the Kijun lines for trend definition purposes. The Tenkan and Kijun lines are part of the Ichimoku indicator, but the remaining 3 parts of the indicator were removed please read more here about the Ichimoku indicator. The strategy needs Tenkan and the Kijun to be aligned to one side: a. When the Tenkan is above the Kijun - bullish bias.
When the Tenkan is below the Kijun - bearish bias. When the Tenkan equals the Kijun -range. This is a sweet, simple and effective way of measuring the trend. Trading must not be complicated or high level mathematical to be profitable. The opportunity is valid when the Tenkan has an angle: a. An upward sloping angle means upward momentum. A downward sloping angle means downward momentum. The trend and opportunity have to be aligned to the same side before a trader can continue with the next step.
This could be either: A Bullish trend and bullish opportunity. B OR bearish trend and bearish opportunity.
In the screenshot below is an example of when a currency has momentum to the upside, downside or no side flat. Again the opportunity is very intuitive and has an internal logic to it. Nothing fancy yet effective. The filter uses the daily chart to check if any trend and momentum face major obstacles such as daily tops and bottoms.
The results can potentially be improved with filters. The filter steps keep our focus on valid setups and make sure our mind is not overtrading. Filters are very important for making your trading more profitable.
The trigger is the moment that the trader is waiting for: the price has confirmed its expected development and a trader is one step away from entering.
The trade is not just a potential trade setup but it close to becoming an actual trade. This strategy uses the following triggers:. Green dots mean parabolic with a value 2, whereas purple dots mean parabolic with a value of 5. The trigger means full alert for the trader as the moment of entry spirals closer… Click to learn more about momentum trading. The entry method is an immediate market order as soon as the candle closes. a An upside breakout should be accompanied with a close near the high; b A downside breakout should be accompanied with a close near the low.
False breakouts often tend to have big-sized wicks upon a breakout. By waiting for the candle to close, the trader can avoid these potential false breakouts and stay in control of their trading plan. The entry is the defining moment but it never hurts to be critical before opening the position. The stop loss uses the tops and bottoms from the 4-hour chart. The tops and bottoms are candles which are the highest or lowest candles within a group of a minimum of 5 candles.
The take profit uses a trail stop loss. The main trail is an exit upon a crossover of the Tenkan and Kijun to the opposite side plus a candlestick close on the opposite side of the Tenkan line for longs cross to the downside; for short cross to the upside. Another trail stop loss that could be used for discretionary purposes is the Parabolic value 2: as soon as the parabolic is placed on the opposite side of price then the trade is immediately closed.
We also have training on Japanese Candlesticks and How to use them. That concludes the rules and explanation of strategy We hoped you enjoyed the ride! We hope you find that this simple yet profitable strategy can be a very profitable forex strategy.
Let us know down below! Last but not least, make sure that the strategy rules match your own trading psychology to increase the chances that the rules are implemented effectively. Thank you for taking the time to read our posts, and also for sharing this article with your acquaintances.
Please leave a comment below if you have any questions about this simple strategy! We wish you Happy Trading! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.
Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Hi, Love the strategy. I love to be able to wait for the Tenken to tick up or tick down which ever way that you are trading. You could enter in when the candle goes through the kiyjin, but the ichimoku averages also act as dynamic support and resistance.
I might add a Williams fractal and as the fractal is formed below the kiyjin and Tenken, if trend is going down to wait for the first fractal to form and wait for the price to trade through the fractal. Excellent strategy overall!! so I'm going to change the color of this to white and make it a little bit fatter so you guys can see what's going on here i primarily like to use the moving average as a trend line because if the price is constantly dancing below the moving average that means we're in a short downtrend or if the price is above the moving average.
we are in an uptrend this will give you the direction of the trade that you want to go in a very simple rule of thumb is if the price is below the moving average comes up to touch the moving average and then continue in the same direction that is a good entry point and a continuation of that trend.
so as you guys can see here the price crossed through this 10 simple moving average formula came up to test it rejected and continued down it did that here as well as here now what's the number one rule in day trading the trend is your friend. So once it tested the moving average and then continued down that would be a nice signal for an entry point this works on crypto this works on Forex this works on indices this works on stocks as you can see right here when the price gets way too far from the average meaning the price is too far from what a reasonable price at that time is it rockets right back to the moving average but the momentum is still in that direction so it will continue its trend so what I've done here is actually added three more moving averages the 21 the 50 and the this will give you an even more clear indication of which direction the price is heading when the price starts rocketing up you can actually see the moving averages spread out like a fan like they do here this means that there's a lot of momentum in that direction and buying in that direction or selling in that direction is a good idea it will also show you when the trend is starting to die down by breaking through each subsequent moving average to the downside and then comfortably resting below the moving averages.
thus signifying a short-term downtrend so you guys are seeing this and you want to trade the moving averages you want to make a lot of money on all the moves continuing with the trend or seeing where the reversals are but how do you know for certain how do you know for certain with moving averages that this is going to be your best course of action honestly it's time.
so this would be your entry point and then you get out whenever your take profit is the same on the downside once the price moved down through the moving averages and we start seeing the big red cloud form you'll get white stars signifying a downtrend sell signal.
So you'd get in on this white star and then get out when your take profit is hit so if you guys want more information on this pip hunter so please check out our website below to get best Forex trading strategies, robot, tools etc.
we are not your financial advisors who guarantee of your profit at all. Forex Trading Strategy Simple Profitable Trading Strategy. Premium Store. Of course, there are multiple things to consider, both for beginners and professionals.
These include the types of available apps for trading Forex, the choice of currencies in trading Forex, the spreads offered, and the potential profit. In addition, it is better if the broker you pick for trading Forex can offer minutes of price movements in the market.
Together with a variety of other indicators, the availability of these features is key to obtaining low-risk trades. Understanding price action is one of the safest tips in the world of trading Forex. This step refers to the analysis and interpretation of the latest currency exchange rates. These figures can be displayed in a variety of forms, such as candlestick charts or lines. Price action is regarded as a representation of price movements in the market. By understanding price action in trading Forex , you can build the right strategy, including determining entry and exit points to get the best returns in trading.
The levels of support and resistance indicate the range of price movements of an asset in trading Forex. This strategy is quite common for both beginners and professionals who are looking for safe trading techniques. Support shows the approximate price point the value of a falling asset does not breakthrough. Meanwhile, resistance in trading indicates the estimated value a rising asset price does not exceed.
This idea is fairly simple. Yet, by plotting these areas, you can determine the approximate price of the asset when trading Forex. Breakout in trading Forex refers to the phenomenon when the price movement in the market exceeds the expected resistance point for the asset.
Basically, when this happens, there is a possibility that the value will continue moving in line with the trend observed while trading Forex. Therefore, you should always consider the possibility of a breakout when trading Forex. Fibonacci search is helpful in trading Forex, even for beginners. It prioritizes the analysis of asset price movements over a certain time period in the past.
The foundation of this technique for trading Forex is the Elliott wave theory, which states that large waves of price movement will always be followed by small waves. It is taught to newbies, and anyone can use this pattern to accurately predict the real value of an asset in the future. This approach is suitable even for beginners , especially when trading Forex in the long term.
To be able to apply this trading Forex strategy, you must rely on analysis of the value of your currency.
Before we get started, let me tell you something. If you follow the guidelines outlined in this article and implement the approach as instructed, I am assured that you will be able to make consistent profits month after month. This is a simple yet highly profitable forex trading strategy.
The focus of this strategy is to cut our losses short and gain as much as possible. The main driver of this strategy is the Higher Returns and Small Losses.
Also, when developing this trading strategy we followed the popular term KEEP IT SIMPLE STUPID. Hence, all the trading signals are generated by the trading system and all you have to do is to place your orders and manage them according to the rules of engagement.
In this trading strategy, we use 50 simple periods moving average to determine the market trend and use bullish and bearish engulfing candlestick patterns to get into trades. Basically, when trading this strategy, after determining the trend, we will ride that trend to gain as much as possible.
Also if the trade is not going in our favour, then we immediately cut the losses. For example, have a look at the charts below. It represents how a profitable trade and a losing trade looks like. With these kinds of returns, achieving consistent monthly gain is simple.
For extra clarification, have look at the excel screenshot of our trading journal. It represents how the profitable trades and losing trades are distributed. In the above chart, we got a total of 15 trades. Among them, we only had two massive 60 PIP winners with some small winners and all others were losing trades.
That is the beauty of this trading strategy. Now I hope you got a brief idea about how this simple profitable forex trading strategy is going to work.
Personally, I am a huge believer in keeping things simple. First, head over to tradingview. com and open a free account. Then follow the below video to set up your tradingview chart. Ok, Tradingview is now ready. But from which platform are you going to place the trades? Also, we are using a Minutes timeframe for this strategy. So make sure that you are on the right timeframe. If you want to make a consistent profit each and every month, you need to take control of your emotions.
Related: How to Control Emotions Ups and Down When Trading Forex — Trading Psychology. Since we have tremendous returns in this trading strategy, these small emotional problems will not be big deal. Consider this: even if you have a poor win rate, you can still be profitable due to the higher risk to reward ratio.
So you can be a calm trader since the win rate cannot bother you anymore. When it comes to this trading strategy, the main objective is to decrease the size of losing trades while simultaneously exponentially increasing the gains of winning trades.
When trading the forex market, Losing trades is one of the most common market events that can harm us, right? Due to the higher risk to reward ratio, losing trades cannot hurt you anymore because you have a gut in your exponential higher returns. This is a significant step in the direction of becoming a successful trader. As you know, our trade entry is bullish and bearish engulfing candlestick patterns, and the best thing is, you have nothing to do. Every trade signal is generated by itself in the chart, so just relax and execute.
We have three types of trade entries in this simple profitable forex trading strategy. This trade entry technique was developed to catch the trend early as possible or in another word, I can say that this is the first attempt to catch the trend. Basically, we are waiting for bullish or bearish candlestick to break the 50 Simple moving average. Have a look at the marked area in the above chart yellow circle.
On there we can see that a strong bearish candle closed below the 50 Simple Moving Average. This is what I call initial breakout entry and this is a bearish trade signal. In the next chapter, we are going to talk about how to manage risk Setting stop-loss and cutting losses. On the marked area in the above chart, you can see a bullish engulfing candlestick pattern break and closed above the 50 Simple moving average. This is our buy trade signal. Now, what happens if we do not get bullish or bearish engulfing candles when the price break the moving average?
What happens if it is just a regular candle? Which is…. I use this trade entry technique if I were unable to get into the trade on the initial break of the moving average. In here I wait for the market to slow things down after the initial break of the moving average, then like the previous example, I use bullish or bearish engulfing candlestick patterns to execute the trade.
But we did get a bearish engulfing candlestick after the break and pullback AKA after the breathing stage,. Now here we consider the marked pullback as the breathing stage. In the breathing stage, any bearish engulfing candlestick pattern is qualified to place a sell trade.
Have a look at the above chart. Just like the previous example, we did not get bearish engulfing candlestick at the initial breakout. But inside the breathing area, we got multiple bearish engulfing. All of these candlesticks inside the breathing area are qualified to go short. When using this trade entry technique, most of the time we get into the trade in the middle of the trend.
We wait for price action to pull back and touch the 50 MA and then wait for a bearish engulfing candlestick to place trade. According to the above, you can see that price pullback to the 50MA and touched it. This is a valid pullback. Now, all we need is a bullish engulfing candlestick to go long. As expected we got a bullish engulfing pattern and after that price shoot like a rocket. As you already know this simple forex trading strategy is highly based on the small risk and higher reward.
Assume you had a bullish engulfing candle and you should place your entry at the closed on that candle. Next, measure the size of that bullish engulfing candle in PIPs and place your stop-loss twice that distance. For example, if the size of a bullish engulfing candle is 7 PIPs, then your stop-loss should be 14 PIPs. According to the above chart, you can see that we got pullback trade entry as the marked bullish engulfing candle is closed. So our trade entry should be there.
Now, the size of that candlestick is 7 PIPs, therefore Stop-loss should be 14 pips which is twice that candle. This is how you place the stop loss when trading with this simple profitable forex trading strategy. We can also avoid larger drawdowns by cutting losses. If you can follow the above rules without letting your emotions affect your trading decision, you can become a profitable trader and a professional risk manager in no time.
Step 1 — If Price Break Above or Below the Engulfing Candle, We Should Close the Trade Manually. Assume you saw a bullish engulfing candlestick pattern and decided to take a long position. After that, the price break below the trade entry and closed below the bullish engulfing candle. When this occurs, the bullish engulfing is no longer valid, and there is no reason to keep the trade open. Therefore, we should cut our losses as soon as possible by manually closing the trade.
This way we can stop a trade turn into a bigger loss. First, we can see that there is a bearish engulfing candlestick pattern that occurred after price break below the 50 SMA and this is a valid trade entry as well. What happened after we went short? Within two candles price went up and closed above the bearish engulfing candlestick. Which mean our trade entry got invalidated.
Now What? Simple, as a trader and as a Risk Manager, you should cut your losses because our trade entry got invalidated and there is no reason to keep hoping that this trade will turn in our direction. In this step, we are giving some time period to see how the trade plays out. If the trade has the momentum to move in our favour within that time period we gave, there is no problem. Simply because the momentum is not in our favour. According to the above chart, we got a breakout entry with a strong bearish engulfing candle.
This is our trade entry and we can place a short trade here. Now in this scenario price never tried to close above the entry candle. This is how you take control of your losses and keep your losses short, so that when you hit winning streaks and bigger winners you asymmetrically compound your gains. According to the above chart, we got a strong bearish engulfing entry signal following the break of the 50 SMA. We can place a short trade there. Right after we executed a short trade, momentum began to kick in and price began to move in our favour, eventually reaching our 1R profit target.
Have a look at the red stop loss line. This is the third step on how to cut losses.
Web31/10/ · Building a profitable trading strategy – Complete guide. If you go to the internet, you will often find trading to be represented as the “ escape” or something Web8/11/ · Simple Profitable Forex Trading Strategy. it's a lot of getting familiar with the pair that you're trading another thing that i suggest is actually using multiple indicators WebNow, what is this trading strategy? This is a simple yet highly profitable forex trading strategy. The focus of this strategy is to cut our losses short and gain as much as Web5/7/ · K subscribers. In this video, I will walk you through a simple forex trend-following strategy that I've been trading in the markets profitably for some time! We'll ... read more
If the price is above the 20 SMA, then it is in an uptrend. Me , because I recognize that this is the real difficulty they have. When you will finish your application, let me know how you did it and score you will get for this work 🙂 Kind regards. The price reached my lowest order, but I missed to set the order to the highest entry. Trading Strategies. March 19, at am. They want a secure, fool proof way of gaining, happiness, success or even love, without having to dedicate themselves to working at these things consistently.However, simple profitable forex trading strategy, my account grows. Do it. so I'm going to change the color of this to white and make it a little bit fatter so you guys can see what's going on here i primarily like to use the moving simple profitable forex trading strategy as a trend line because if the price is constantly dancing below the moving average that means we're in a short downtrend or if the price is above the moving average. But be aware that the Price Action exists because the unbalancing between Supply and Demand willing. Yes I agree with you that once you have it setup, then it should look less complicated.