World forex profitable strategy

The trader would now decide to be bullish and will take any only BUY positions. It can be easily noticed that the BUY trades would have been very successful for the trader. The BUY opportunity on 11th Dec and 14th Dec would have been profitable, with the signal on 14th Dec proving to be quite a successful one.

The chart also shows multiple trading opportunities to the BUY side. The trades also have a greater risk and reward ratio since they are placed in line with the higher time frame trend direction. Back to top Bollinger bands a simple profitable forex trading strategy: Bollinger Bands is an excellent indicator for trend following. Many trend traders use them to identify the trend direction and the market volatility using the bands. The widening of the bands implies volatility, while the ranging markets are associated with narrower bands.

The outer bands act as support and Resistance and also to identify targets for an exit. The trading results using Bollinger bands can yield higher results if combined with the Top-Down approach. Both these dates signaled a BUY in a daily chart. The trader can use this signal to place a trade using this same chart. But the trade can also use a lower timeframe chart to identify specific and best entry points further.

Keeping in mind the BUY signal from the D1 chart, the trader will decide to choose only those BUY signals from the H1 chart while ignoring other signals. Thereby the trader stays within the bigger trend direction while having accurate entry and exit points with lower drawdown.

The above chart also displays multiple trading opportunities with all of the trades resulting in positive outcomes. However, if the trader decides to day trade, the trader can use the above M30 charts to day trade with smaller stop loss and profits. But the directional bias will remain according to the higher timeframe chart. In this case, the trader decides to place only BUY orders and can day trade successfully.

Back to top Support and Resistance trading the best forex strategy ever: Support and Resistance are considered as the primary stepping stone of all technical tools and indicators. The Support and Resistance can be either horizontal lines or an angled line as a trend line and provide vital clues for any technical trader. Almost every trader uses Support and Resistance and measures nearly any price regarding the nearest Support or Resistance. The proximity of the price near Support or resistance lines invokes trading decisions.

There may not be a trader who discusses weak Support, strong Support, weak or strong Resistance in their day to day trading. Traders who already in a trading position refer to the next higher time frame chart to identify the next resistance or support level. Because Support and Resistance in the higher time frame charts are considered very strong, a breakout or rejection of the support or Resistance in higher timeframe charts would provide higher returns. The 1. Once the trader identifies the support and Resistance in the Daily timeframe.

The trader can use a lower time frame chart to analyse closely and find a best entry point using H1 chart or M30 charts. The Support and Resistance from the daily chart are marked as yellow. Its is very clear to see the price action at these levels in the H1 chart where prices respect the daily Support levels and react.

The H1 chart identifies additional Resistance at 1. The settings are in the screenshot below. The indicator is displayed in a separate window under the chart. This is an oscillator that identities trend pivot points.

It does it quicker than standard oscillators. It has two lines: the signal line is dotted, the additional line is solid. But the receiving line has two types of colours orange and green. Note that the indicators in the Bali trading strategy are selected so that they provide an early signal buy and sell. This gives a trader more time to confirm the market moves and check the fundamental factors. MA is a standard MT4 tool, the rest two indicators can be obtained for free in the archive via this link.

Past the indicators into the folder and restart the platform. Conditions to open a long position: The price breaks through the orange line of Trend Envelopes upside. At the same candlestick, the down orange line changed into the rising blue line. The candlestick is above LWMA. When the previous condition is met, expect the candlestick above the MA to appear. The candlestick must close above the red line of LWMA. There must be the blue line of Trend Envelopes at the signal candlestick.

The additional line of the DSS of momentum at the signal candlestick should be green. This line must be above the signal dotted line that is, it is breaking it through or has already broken. Enter a trade when the signal candlestick closes. I recommend setting a stop loss at a distance of points in four-digit quote.

A take profit is points. The arrow points to the signal candlestick where Trend Envelopes colours change. Note purple ovals that the blue line is below the orange and is moving otherwise the signal should be ignored. At the signal candlestick, the green line of the DSS of momentum is above the dotted line. Conditions to open a short position: The price breaks the blue line of Trend Envelopes downside. At the same candlestick, the rising blue line changes into the falling orange line.

The candlestick is below LWMA. When the previous condition is met, expect a candlestick to appear below the moving average. It must close under the red line of LWMA. There must orange line of Trend Envelopes at the signal candlestick. The DSS of momentum additional line should be orange at the signal candlestick.

It should be located below the signal dotted line that is, it is breaking through it or has already broken. The below screen displays a candlestick that closed at the level of MA the red line , almost fully below the line. The below screen shows that the DSS is below its signal line at the signal candlestick. Besides, the blue line is flat, not rising.

Signals are relatively rare, you can wait for one signal for a few days. Do not trade when the market is flat. Test this strategy directly in the browser and assess the performance. It is based on the springy action of the price — if the price rose quickly, it should fall sooner or later.

We can use a chart in any terminal and a timeframe W1 although you can also use a daily timeframe. You should analyze the size of the candlestick body of different currency pairs. Next, choose the pair with the longest distance between the opening and closing prices within the week. You will enter a trade on this pair at the beginning of the next week. Conditions to open a long trade: The bear candlestick, indicating the price action for the previous week, has a relatively big body.

You enter a long trade at the beginning of the next week. You should set a stop loss at a distance of points and a take profit - at points. In the middle of the week, exit the trade. It may be closed with a take profit or a stop loss.

Then, again expect the beginning of the week and place a new order. Do not place orders at the end of the week. It is clear from the chart that, following each bearish candlestick, there is always a bullish one although it smaller. The matter is that what period you should take to compare the relative length of candlesticks. It is individual for each currency pair. Note that some small bear candlesticks were followed by rising candlesticks.

The relatively small fall, occurred in the previous week, may continue. Conditions to open a short position: The bullish candlestick, indicating the action during the previous week, has a relatively big body. Open a short position at the beginning of the next week. Red arrows point to the candlesticks that had large bodies relative to the previous bullish candlesticks.

All signals were profitable except for the trade that is marked with a blue trade. The disadvantages of the strategy are rare signals, although the percentage of profit is quite high. And you can launch the strategy trading multiple currency pairs. This strategy has an interesting modification based on similar logic. Investors, day traders, working with a trading volume prefer intraday strategies.

They do not have enough money to make a strong influence on the market. So, if there is a strong market action in the weekly chart, this signal the pressure made by big traders. Differently put, if there are three weekly candlesticks in the same direction, the fourth candlestick should be in this direction too. The psychological factor is also important here. Those, who have been pushing the market in one direction, should start taking the profit in a month. It is good if the next following candlestick is bigger than the previous one.

Doji candlesticks candlesticks without bodies are not taken into account. A stop loss is set at the close level of the first candlestick in the sequence. An example of such trade setups is in the screenshot below. It can take 2 or 3 months. But if you launch the strategy on multiple currency pairs, this term of expectation is justified. Take swaps into account! This is a trend strategy. Most sources suggest using it in different timeframes, including minute ones, but market noise lowers its efficiency in very short timeframes.

Indicators used: EMA with periods 5, 25, and Apply to — close closing prices. Parabolic SAR. Leave the default parameters you can only adjust the colour if you want. Parabolic SAR is below the candlesticks. Parabolic SAR is above the candlesticks. You can enter the trade at the same candlestick when the moving averages have crossed. A stop loss is set close to the local low, take profit is points. But if you manage trades manually, you can make a bigger profit.

It indicates a change in the slope from a rise to a flat. It is clear from this screenshot that all the three signals two longs and one short yielded profit. One could have entered the trade at the next candlestick.

It is after the signal one to be sure in the trend direction. However, a good entry point would have been missed. It is up to you whether to risk or not. These parameters will hardly work for hourly timeframes.

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Next, measure the size of that bullish engulfing candle in PIPs and place your stop-loss twice that distance. Study the chart below. 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. With that, we use 4 step process to cut losses after executing a trade. If the Price Breaks below or above the Engulfing candle entry candle , we should close our trade manually.

When the price move 1. 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. As you already knew, our trade entry is bullish and bearish engulfing a candlestick pattern. Next… 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. Have a look at the chart example below, 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.

Assume that we went short here. 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. This is the first step. 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. Now, How much time period are we going to give? Have a look at the chart below, 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. Now, what happened there? Price moves against us and hits the stop loss for 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. Have a look at the chart example below, 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. At this point, there is little to no risk on our trade. Step 4- When the price move 1.

This is where we turn our risky trade into risk-free trade by moving the stop loss to breakeven after the price reached 1. Just like the previous example, in here price first reaches to 1R level. But in here price did not stop after reaching 1R profit level, it moves down and hit our 1. Right after that, we can move the stop-loss to breakeven and take all the risk out of the table.

Now we have no risk attached to the trade, next, all we have to do is to let the trade play out and manage the trade as the price move in our favour. Managing trade is easy. You just have to trail your stop loss while the price move in your favour. Trade Management and Take Profit As previously stated, after a trade has hit 1.

The next question is how we will manage our trade and profit after the price has reached 1. So, managing a trade is not that difficult, especially because we apply a set of rules that are simple to follow and execute. What are these rules? To understand that have a look at the sketch below. I think you got the idea. For example, when the price is 3. That way we can leave 1. First of all, have a look at the trade entry. This is an initial breakout entry. Because we got a bullish engulfing candle on the initial breakout and with that, we placed a long trade.

Risk and loss are integral parts of trading Forex. Both are impossible to avoid, but they can be controlled. Therefore, the secret of how to practice Forex trading for beginners and professionals is not about eliminating all risks. Still, traders must minimize the risk of trading Forex as much as possible. For this reason, we have compiled the following guide for you. Here are nine ways to engage in trading Forex safely and increase your potential profit. Choose the Right Broker for Trading Forex Choosing the right broker is a fundamental step in the world of trading Forex.

This is vital, as only trusted brokers will provide all the features and services you need for trading Forex in a safe and lucrative way. 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.

Price Action 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. Support and Resistance Levels Support and Resistance 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 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.