Forex trading strategy #3 (EUR/USD simple system)

hi edward, how many pips can one set as a minimum when trading this currency pair.from kay

hi Edward

I found this site last night and loved it, i live in New Zealand and wanted to know if there is any info regarding daily currency behaviours.. i mean daily interpretations of the currencies, which currency should suit my location the best

Thanks
Varun

Hi, I have to say that I am very amazed with this. I'm finding it very hard to believe that this is so simple. I've checked and checked and it seems to hold true.

True, MACD signals to Short with crossovers above zero are often stronger.

Regards,
Edward

Your observation is correct. Such signals are weaker as a rule. Ideally we want to trade Long with MACD lines crossing while below zero and go Short when the cross appears above zero.

I'm sorry - maybe I'm mistaken. I thought that for buy, the crossover will need to be above 0 for the signal to be stronger?

Thanks

I'm not sure about the last example with short trades... I'd appreciate a screenshot or any reference.

Regarding time frame, you can certainly try a higher one. The stop distance would depend on the currency pair you choose as well as the market volatility at any given time, it is difficult to suggest any certain number here.
In any case stick to Parabolic SAR indicator and trail the stop line alongside its recent dots.

Regards,
Edward

Dear Edward,
can i use the same setting for 4H timeframe? and what wil be the nigative pips tat should i expect on this time frame? and for example if i go short and the trade goes aignst me with 100 pip like what is appening this days can i go short again while holding the ld position to turn to zero loss then close all trades?

this one of the easiest strategy ever, yet effective! great ed!

1 minute trading might be a bit too fast for you, especially if you don't like your trades going into the negative pips territory. However, I should say that the large portion of trades starts with accumulation of negative pips. The reason is simple, you can't always capture the perfect move up or down, price likes to retrace, move back and forth, and it will do so any time it has a chance. So, your best bet is to get more patience and of course some confidence too, which can be achieved by placing a good logical stop.
Now for EURUSD pair, it is very common among traders to trade off 1 hour charts. May be you can try that too. Note that your risk level will increase - the market can move against you for 20-30 pips on average and you should be prepared to sit tight.
Try RSI settings of 6 versus 20.
Also Stochastic 5, 3, 3 versus 20, 3, 3.

And for the rest just keep on reading and testing the strategies on this website. I'm sure you'll find a lot of good trading ideas.

Actually, also see if you can master this strategy; with an accurate execution you might have better chances for trades going in your favor very soon after the entry.

Best regards,
Edward

hi Edward
nice website after wasting time on the net finally found and landed here forever my question is i will always lose money after getting into trade i will get panic if i will buy it will start sinking and i lose money and one more thing i will always work on 1min chart may be that is the reason, what time period you would like to suggest me to follow pls advise me so i can follow and recover my loss simple things give for the following.
For Eur/Usd
1. time period
2. rsi value
3. stochastic value
or any other andicator.

MACD indicator on MT4 has one line, which is enough to trade with.
If you prefer two line MACD, try this custom indicator: Good_Macd.mq4.
You'd need to add it to your platform. Use steps described here:
How to add indicators to MT4.

Thomas

I don't have 2 lines of MACD, only one :(
Is it because of my metatrader or I do something wrong?

This trading strategy has no fixed profit targets. Use exit rules to collect profits - it'll be a different value each time.

how mach pips profits with this strategie???

Man, i think you better give another filter for this strategy; Please put EMA 16 (for Timeframe m30 use), you can now where's the position you should have chosen.

Kind Regards;

Manus168