Forex Strategy
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For trends to come alive on 1m timeframe, observe 15m timeframe.
For trends to come alive on 1hr timeframe observe 15m timeframe
For trends to come alive on daily timeframe, observe hourly
• Do not trade during a news announcement on FXStreet, too volatile, wait after banks
jump in
• ALWAYS TREND TRADE. The Trend is your friend!
• PATIENCE - DO NOT TRADE THE MARKET, LET THE MARKET COME TO YOU
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⭐How to Trade and manage your risks:
Currency Heat map to find Trend > Forex Strategy (Trend Confirmation
Indicator) > Trading View Exit Indicator (Heiken-ashi)
• RISK ONLY 2% of your entire trade account (Trading Account *
0.02)
When do I place a Trailing Stop?
• Use it if Price has closed 2x the ATR of Entry
• (1.5 * ATR) is your stop loss / trailing stop needs to be (1.5 * ATR
from price)
• (Risk / 1.5 ATR) = Pip value <= How many dollars per pip you need
to put on each trade?
> DO NOT TRADE THE SAME CURRENCY MORE THAN ONCE AT 2% <
Trailing Stop Video
https://www.youtube.com/watch?v=Bsc_1GwKINM&t=1050s
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TREND CONFIRMATION INDICATIOR (USE 2 Or 3 Trend Indicators)
• Zero Line Cross
• Two Lines Crossover
• Chart Indicator
https://www.youtube.com/watch?v=JxUtee7krFc&t=117s
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OBV STRATEGY - price volume indicator
• Uptrend, Divergence going down (SELL)
• Downtrend, Divergence going up (BUY)
• Use the OBV line is to detect divergences between the price movement and volume
movement
https://www.youtube.com/watch?v=Jg42HNi1uWE
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AWESOME OSCILLATOR STRATEGY - momentum indicator
(Pay attention to the difference in bar size of the Awesome Oscillator with the OBV)
1. Zero Line Cross Over: ( Works better in Market Trend )
2. Twin Peaks : Two consecutive peaks must be formed above the zero line for a SELL
entry, or below the zero line, for a BUY entry
• The second peak must be lower than the first one and must followed by a red bar, for
a SELL entry
• The second peak must be higher than the first peak and followed by a green line, for
a BUY entry
3. Saucers (Tracks short term momentum) (Requires 3 consecutive bars) (Works best in
following the main direction of the trend)
• A RED bar, followed by s smaller RED bar, followed by a GREEN bar indicates a BULLISH
SAUCER
• A GREEN bar, followed by a smaller GREEN bar, followed by a RED bar indicates
a BEARISH SAUCER
https://www.youtube.com/watch?v=syOXhMyT-Rw
https://www.youtube.com/watch?v=H3x-7_TM-ak&t=29s
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ATR STRATEGY- pip value/volatility indicator (PRIORITY OVER ALL INDICATORS)
Tells you how many pips a currency pair has moved, on average, in the past X amount of
candles.
https://www.youtube.com/watch?v=086ozcHDZPw
How to use ATR
• The ATR indicator measures volatility (Note the ATR of entry and Use calculator to trail
stop)
• The ATR can scout S/R zones using volatility
• Low ATR values (on weekly timeframe) could lead to big breakouts, use candlestick
wicks for assistance
• You can use ATR indicator to set Stop Loss
• If the market has move 2x ATR value or more into S&R, it could snap back in the
opposite direction
https://www.youtube.com/watch?v=KTtDgOfFzmA
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SMOOTH MOVING AVERAGE STRATEGY
The “cross” refers to two simple moving averages “crossing” over each other. A golden
cross is considered a BULLISH sign; it occurs when the 50-day moving average rises above 100-
day/200 -day moving average. A death cross is considered a BEARISH sign; it occurs when
the 50-day moving average drops below 100-day/200-day moving average.
You can enter long trends safely from the bounce of a moving average. The higher the time
frame the greater the bounce.
Pending orders is the best option for trend continuation.
https://www.youtube.com/watch?v=swLj8ihNi2A
https://www.youtube.com/watch?v=086ozcHDZPw
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TRADING VIEW HEIKEN-ASHI
(Consult trade strategy first before heiken-ashi)
NEVER USE HEIKEN-ASHI FOR TRADE ENTRIES!!!!!
USE HEIKEN-ASHI FOR TREND CONTINUATION ONLY!!!!
White means long
Red means short
(small body heiken-ashi that fails to push new high or low means a possible reversal, (not
guaranteed) Use trailing stop loss.
https://www.youtube.com/watch?v=GzvxXS2OUvM
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TAKE PROFIT STRATEGY
• Set it before you enter a trade
• The Shorter the Timeframe, the Tighter your Take Profit would be
• The Longer the Timeframe, the Wider your Take Profit would be
• Take Profit Early when ( The is a change in News Sentiment that is totally unexpected ) &
( Encounter a MAJOR Reversal )
• Don’t be fooled by Temporary Market Correction ( Use Trailing Stop Loss ATR Strategy )
When do you Take Profit?
• Profit Target hit
• Trend line Breaks
• Unexpected external catalyst (Breaking news that goes against trade strategy)
• Key levels reached
• Price goes stagnant (loss momentum)
• Reversal pattern (check multiple timeframes to find
them) https://www.babypips.com/learn/forex/japanese-candlesticks-cheat-sheet
• Time Strategy (used in day trading)
3 Methods to trade CONSOLIDATION (The Box Method)
https://www.youtube.com/watch?v=qheOU05vQlE
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MINOR TIPS
• TRADE EXECUTION
BUY STOP - Order placed above price and price keeps going up
SELL STOP - Order placed below price and price keeps going down
BUY LIMIT - Order placed below price price then goes up
SELL LIMIT - Order placed above price and price then goes down
• TradingView general ideas for time trends (Not mandatory)
• Trend lines are drawn at Swing High and Swing Low
• Place Pending orders at previous swing high and low level
• The most volatile forex pairs
Only GBP/USD, USD/JPY and USD/CAD pass more than 100 points a day. And the EUR/USD is the least volatile,
as its liquidity is the highest among all other currency pairs.
Among the cross-rates, the most volatile are GBP/NZD, GBP/AUD, GBP/JPY and GBP/CAD currency pairs.
