TRADE ENTRY POINT:
This article focuses on the possible points trade can be placed using indicators like Awesome Oscillator, Bollinger bands, and others.
It looks at the best way to trade with Fundamental analysis of Forex and commodity assets.
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FUNDAMENTAL ANALYSIS/TRADING THE NEWS:
Steps Required To Trade Negative Correlated Pairs Before News/Data Release for High Impact News;
- Wait till two or one minute before News/Data Release (Check Economic Calendar for time)- speed and accuracy is required when placing Buy or Sell orders (practicing on demo account before going live is advised).
- Enter Buy (Long Position) on the Negative Correlated Pairs – for instance USDCAD and CADJPY (that is, Enter Buy position on USDCAD, and also enter Buy position on CADJPY).
or enter Sell (Short Position) on both Pairs (Note: You can only enter Buy or Sell for both pairs, do not enter Buy and Sell at the same time).
- Set Stop-Loss, minimum of 5 Pips and maximum of 10 pips on the Buy positions for both currency pairs and wait till new is released.
- Immediately the Fundamental News/Data is released, the price for both pairs will go in opposite direction and stop loss of 5 pips will be tripped for just one of the pairs (except for conditions when price ranges after news release – this is rare).
- The other pair will be in good profit (this depend on how high the news impact is).
Note: This strategy does not work all the time (there are times when price will range/whipsaw upon news release).
RESULTS: 12TH MAY 2021 (U.S CPI DATA RELEASE)
RESULTS: 7TH MAY 2021 (U.S NON FARM PAYROLL DATA RELEASE)
AWESOME OSCILLATOR TRADE ENTRY POINT:
Consider entering a buy trade when the awesome oscillator indicator bar crosses above the zero line. Especially when the previous bearish awesome oscillator bars are bigger than the bullish awesome oscillator bars as shown in the image below.
You may enter a sell trade when the awesome oscillator indicator bar crosses below the zero line. Contrary to the buy trade, the previous bullish awesome oscillator bars are bigger than the bearish awesome oscillator bars as shown in the image below.
BOLLINGER BANDS TRADE ENTRY POINT:
Enter a sell trade when price crosses and close below the mid-Bollinger band. Especially when there is a bearish price spike on the upper Bollinger band as shown in the image below.
Consider entering a buy trade when price crosses and close above the mid-Bollinger band. Especially when there is a bullish price spike on the lower Bollinger band as shown in the image below.
Enter a buy or sell trade when there is a range breakout after a Bollinger band squeeze. Especially when there is an outer band expansion and price laps with the outer band as shown in the image below.
5-13 EMA AND PARABOLIC SAR TRADE ENTRY POINT:
Consider entering a buy trade when 5 EMA (red colour – Apply to Close) crosses above the 13 EMA (yellow colour – Apply to Close) and price also crosses and close above both EMAs. Especially when Parabolic Sar forms under the price and ticks up as shown in the image below.
On the contrary, enter a sell trade when 5 EMA (red colour) crosses below the 13 EMA (yellow colour) and price also crosses and close below both EMAs. Especially when Parabolic Sar forms above the price and ticks down as shown in the image below.
QUASIMODO (HEAD AND SHOULDER) STRATEGY:
Quasimodo traders like to trade trend reversals a lot. Quasimodo is similar to Head and Shoulder pattern.
This strategy involves spotting the exact point where a trend is like to reverse.
Whenever there is a formation of these three turns; Low, Higher High and Lower Low in and uptrend, this predicts that the uptrend may likely end.
On the other hand, if there is a formation of these three turns; High, Lower Low and Higher High in a downtrend, this predicts that the downtrend price movement is about to end.
HH-LL PRICE MOVEMENT (BEARISH QUASIMODO):
Consider entering a sell trade when you have a price movement pattern as shown below.
LL-HH PRICE MOVEMENT (BULLISH QUASIMODO):
Consider entering a buy trade when you have a price movement pattern as shown below.
(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)