How To Trade (Part 5)
“How To Trade (Part 5)” is the fifth strategy series on how traders can trade Forex or Volatility Index on the mobile Meta Trader app.
However, this very strategy is indicator based and traders can load the settings on the Personal Computer as well as on the mobile device.
Basically, this strategy works on all time frames (especially from 1 minute to Daily time frame). You can use this strategy to trade XAUUSD, NASDAQ 100, Step Index, Boom and Crash index.
This strategy is good for scalping profits on smaller time frames (1 minute to 1 hour time frames).
It is also good for trend following on higher time frames.
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Load 200 Exponential Moving Average (Blue color) and 5 Exponential Moving Average (Red color)
on both chart windows.
How It Works:
Basically, this strategy is very simple.
The first step is to divide your Meta Trader 5 chart window into two windows.
For Upper window, select 15 minutes time frame, for Lower window, select 1 minute time frame.
Technically, you determine your trend bias on the Upper Chart Window (15 minutes time frame).
On the Lower window (1 minute time frame), you determine your trade entry trigger.
Whenever the Red line on the upper window cross down on the Blue line, you will have Bearish trend bias.
On the other hand, if the Red line on the upper window cross above the Blue line, you will have a Bullish trend bias.
As soon as you confirm the trend bias, wait for the same type of cross to happen on the Lower window (1 minute time frame).
In a Bearish trend, if the Red line on the lower window cross down on the Blue line, you will have a SELL signal.
On the other hand, in a Bullish trend, if the Red line on the lower window cross above the Blue line, you will have a Buy signal.
Time Frame Combination:
It is best to combine time frames in any of the following order;
1 minute time frame & 15 minutes time frame.
5 minutes time frame & 30 minutes time frame.
15 minutes time frame & 1 hour time frame.
30 minutes time frame & 4 hour time frame.
1 hour time frame & Daily time frame.
4 hour time frame & Weekly time frame.
Daily time frame & Monthly time frame.
The lower the time frame combo, the shorter the time it will take for signal generation.
(Try this on a demo account first!)
- Firstly, allow the crossing to occur o the Upper window first,
- Wait till the same type of crossing occurs on the lower window and execute your trade.
(Volatility Index Broker:…https://track.deriv.com/_WxWzztorkVi2vdm9PpHVCmNd7ZgqdRLk/1/)
(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)