Thursday, February 20, 2014

5 Minutes Momo Forex Strategy

The name of the system is 5 Minute Momo Forex Strategy. This forex system was introduced at "High Probability Trading Setups for the Currency Market" By Kathy Lien and Boris Schlossberg.  It is a simple Scalping Strategy using indicators of EMA and MACD.



Setup
EUR/USD 5 Minutes timeframe
EMA period 20
MACD  (12,26,9)


Open Buy Position When:

  1. Look for currency pair to be trading below the 20-period EMA and MACD to be negative
  2. Wait for price to cross above the 20-period EMA, make sure that MACD is either in the process of crossing from negative to positive or have crossed into positive territory no longer than 5 bars ago
  3. Go long 10 pips above the 20-period EMA
  4. For aggressive trade, place stop at swing low on 5 minute chart. For conservative trade, place stop 20 pips below 20-period EMA
  5. Sell half of position at entry plus amount risked, move stop on second half to breakeven
  6. Trail stop by higher of breakeven or 20-period EMA minus 15 pips


Open Sell Position When

  1. Look for currency pair to be trading above the 20-period EMA and MACD to be positive
  2. Wait for price to cross below the 20-period EMA, make sure that MACD is either in the process of crossing from positive to negative or have crossed into negative territory no longer than 5 bars ago
  3. Go short 10 pips below the 20-period EMA
  4. For aggressive trade, place stop at swing high on 5 minute chart. For conservative trade, place stop 20 pips above 20-period EMA
  5. Buy back half of position at entry minus amount risked, move stop on second half to breakeven
  6. Trail stop by lower of breakeven or 20-period EMA plus 15 pips

Tuesday, February 11, 2014

Tom's Simple 7 Strategy

Tom's Simple 7 forex strategy using EMA indicator setting 7 (close) as a determinant in taking open position. This scalping forex strategy work good on any time frame. It's a simple strategy but good enough to read the direction of price movement. Premises should be combined with higher timeframe. And you can add your indicators if you like.


How to setup the chart:

  • Set a 7 close price EMA.
  • Set a 50 close price EMA
How to Trade

If the 7 EMA is lower than the 50 EMA trade only the short opportunities for maximum risk/reward. So if the closed candles are below the 7 EMA trade short.

If the 7EMA is higher than the 50 EMA trade only the long opportunities for maximum risk/reward. So if the closed candles are above the 7 EMA trade long.


This is a trend-based strategy. The 50 EMA is there to indicate an increasing, decreasing or consolidation trend. I would not be interested in trading this strategy in a period of consolidation.

Warning:
These instructions expect that you have basic trading experience and is not meant to teach or train you in trading derivatives or forex. With that said, you can use this method on any timframe, but since we are differentiating the positions above and below the 7 EMA that means you will have to monitor your trade constantly after you enter it.

Note:
This method was left simple to allow people to use it as I basically set it forth, but also to allow you to adjust it to meet your needs and allow room for your new ideas based on it.