Forex trading strategy #25 (Trend and Strength (intra-day))

TREND AND STRENGTH (INTRA-DAY)

NAME: AYETEMIMOWA JAMES FEMI
SITES: www.bondfx.biz
http://bondfx-market.blogspot.com
http://bondfx-tradealert.blogspot.com

EMAIL: [email protected]
[email protected]

I'm dedicating this strategy to AYETEMIMOWA SUNDAY, today your birth-day, not only that, your decision to start trading live forex is welcome brother!

Its good to also clear the way for intra-day traders. I will be explaining a better way to fight intra-day whipsaw, catching the trend and trading at the right market strength.

Today 25th November 2009 8:00pm i will be using GBP/USD as a good example

Before you read further please review this risk warning:

"Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts."

TRADING PLAN

CURRENCY PAIR: ANY

INDICATORS: SIMPLE MOVING AVERAGES (20,50 AND 100 PERIODS)
ADX 14 PERIOD

TIME FRAME: 15MIN (SPECIAL THANKS TO PETER BAIN FOR THIS INSIGHT)

SAMPLE PLATFORM: MT4 (FXDD.COM) with this you can check the broker time and adjust with your broker's time.

SETUP: YOUR CHART SHOULD LOOK LIKE THE CHART ON THIS PAGE

Every trader knows that the market is all about TREND DIP AND RALLY. The moving averagies will give us the picture of the general intraday trend and i introduce the ADX to help enter the market at a good strength posible to give high probability entries.

UPTREND: This begin when price moves from below the whole of the moving averagies and closes above

DOWNTREND: This begin when price moves from above the whole of the moving averagies and closes below

MARKET GOOD STRENGTH: You have a good strength when the ADX increasies from below the 20 level to above 20 level in an up or down trend. Please note that ADX must be progressively increasing from below 20 to above 20.

ENTRY:

In an uptrend, if ADX is rising and its above 20 at the time of spotting the uptrend, then ur entry is few pips above the closed 15min candle. If ADX was not rising, then wait for it to go below 20level and make increasing value to above 20, then few pips above the 15min candle is your entry for BUY.

In an downtrend, if ADX is rising and its above 20 at the time of spotting the downtrend, then ur entry is few pips below the closed 15min candle. If ADX was not rising, then wait for it to go below 20level and make increasing value to above 20, then few pips below the 15min candle is your entry for SELL.

EXIT:

Fibonacci is my good tp and sl tool, you can adopt any other support and resistant tool

You get more daily analysis based on this trading plan on my blog http://bondfx-market.blogspot.com

Thank you.

JAMES

Edward Revy,
http://forex-strategies-revealed.com/
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