Forex trading strategy #4 (Simple 1-2-3 swings)

Hi,

You may find ready numbers at Action Forex website.

If you'd like to learn more about pivots and/or make own calculations, this website will help: Forex pivot points

Regards,
Edward

Hi, Im a noob in forex and I only want to know how I could find the pivot point? or I need to calculate that with some formula? I really like to test your strategy but I don't know how to calculate pivot point please help. Thanks

Please may i add this post for clarification

Forex 1-2-3 method.doc

Hi Lynn,
1. We wait for a first candle to close above/below pivot line.
2. Go in immediately with a new candle open.

Regards,
Edward

Edward:

Great strategy! Once the price has broken the "pivot line" and closes above (long) or below (short), do you place a market order or should you what for the new price bar to move 5 or so pips? Thanks, Lynn

On MT4 platform go to the menu on top
Insert -> Indicators -> Oscillators -> MACD
Leave standard settings 12, 26, 9, on close
Press OK

PLIEASE I AM FROM NIGERIA AND A NEWBIE. I WOULD LIKE TO KNOW HOW TO PLOT THE MACD ON A METATRADER PLATFORM

Hi Florian,

I believe there is some misunderstanding regarding point 3 here...
If we place a stop "below point 3 at second OK" on the screen shot above, we won't be stopped...
Point 3 is the Lowest swing Low on the chart and is quite distant from our entry.

(A shadow that you've mentioned crosses only pivot line at point 2 (in pink)... Our stop order is below point 3 in pink.)

Regards,
Edward

Hi,
great system! My problem is that quite often I get stopped if setting my loss at the "3" point. In your chart, if I buy at the second "ok", the following candle has a shadow that is slightly below the "3" point. Even though the price increases, I would have gotten stopped by that shadow. Anything to overcome this issue (wait for candle to close before taking loss or similar strategy)? Thank you so much!

Regards,

Florian

Hi Hany,
Stop loss is always below (uptrend)/above(downtrend) point 3.

Regards,
Edward.

Yes, you can simply look at MACD histogram to filter out Buy/Sell suggestions: reading above zero line will suggest a Buying mode, below - Selling.

About MACD lines and settings, the comments on this page should help:
http://forex-strategies-revealed.com/trading-strategy-macd

Should any questions remain, please feel free to ask.

Regards,
Edward.

Dear Edward,
I just want to ask that do we need also to look on the direction of MACD histogram ?
Also, I try to use MACD indicator but always just show up one line, I don't
know how to show two lines like yours ?

Thank you for your help.

Thanks for the great website! Let me add some notes to this strategy.

First of all it has indeed no time frame limitations, e.g. can be traded on 1 minute charts with the same success as on weekly ones.

I'd like to add that in general the larger the number of price bars involved in 1-2-3 pattern the larger is the move after a breakout. This helps in trade planning and exits.

Keep good work!
Peter

Yes, it is the last lowest/highest point followed by a pullback. Once we saw a pullback, we can draw a horizontal line through the lowest(downtrend)/highest(uptrend) points and wait for the price to breach the line and close on the other side.

Please advise if the "latest price peak" is the last lowest point or the last highest point. Or is it the last low point after a small swing, even though not the lowest point.

Many Thanks,
Neelan Narasimulu