How To Trade (Part 3)
“How To Trade (Part 3)” is an article that will assist many traders on a simple strategy that can be used to trade Forex or Volatility Index on the mobile device.
However, this very strategy is indicator based and it can be used on the Personal Computer as well as on the mobile device.
Basically, this strategy works on all time frames. You can use this strategy to trade XAUUSD, NASDAQ 100, GBP pairs, Boom and Crash index.
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The indicators on the main chart are: Fractals (to identify price rejection area), and moving averages (5 EMA, Red line and 21 EMA Orange line)
You will have a Buy signal when the Red cross above the Orange line.
On the other hand, you will have a Sell signal when the Red line cross below the Orange line.
Indicator Window 1:
MACD and moving averages are the indicators on Indicator Window 1.
MACD settings are Fast EMA 12, Slow EMA 26 and MACD SMA 9.
Moving averages settings for Indicator Window 1 are as follows; 250 LWMA, 200 LWMA and 1 LWMA. Where LWMA is Linear Weight Moving Average.
Uptrend starts when the Red line ( 1 LWMA) cross up above the Purple and Blue lines (200 and 250 LWMA).
Ont the other hand, Downtrend occurs when the Red cross down on the Purple and Blue lines.
Indicator Window 2:
Relative Strength Index, Bollinger Bands and Moving Averages are the indicators available on Indicator Window 2.
When the Red and the Green lines (3 and 5 EMAs) cross down on the Black line (200 EMA), you have a Sell trigger.
However, when the Red and Green lines cross up on the Black line, you have a Buy trigger.
(Try this on a demo account first!)
- Firstly, allow the Red line to cross the Orange line on the Main chart,
- Allow the trend to form on Indicator Window 1, by allowing the Red line to cross the Purple and Blue lines,
- Ensure you have Buy or Sell trigger on Indicator Window 2 (after conditions 1 and 2 above have been met) before you execute your trade(s).
(Broker: Alpari … https://alpari.com/en/?partner_id=1244646)
(Broker: Exness … https://www.exness.com/a/t0q1u0q1)
(Broker: FXTM… http://forextime.com/?partner_id=4806145)