Forex Gap Strategy

Forex Gap Strategy — is an interesting trading system that utilizes one of the most disturbing phenomena of the Forex market — a weekly gap between the last Friday's close price and the current Monday's open price. The gap itself takes its origin in the fact that the interbank currency market continues to react on the fundamental news during the weekend, opening on Monday at the level with the most liquidity. The offered strategy is based on the assumption that the gap is a result of speculations and the excess volatility, thus a position in the opposite direction should probably become profitable after a few days.

Features

• Regular trading with clear rules.
• No stop-loss hunting or premature hits.
• Statistically proven profit.
• You have to open position at the week's beginning and close it right before the end.

How to Trade?

1. Select a currency pair with a relatively high level of volatility. I recommend GBP/JPY as it showed the best results during my tests. But other JPY-based pairs should work too. By the way, it's a good strategy to use on all major currency pairs at the same time.
2. When a new week starts look if there is a gap. A gap should be at least 5 times the average spread for the pair. Otherwise it can't be considered a real signal.
3. If Monday's (or late Sunday's if you trade from North or South America) open is below the Friday's (or early Saturday if you trade from Oceania or Eastern Asia) close the gap is negative and you should open a Long position.
4. If Monday's open is above the Friday's close the gap is positive and you should open a Short position.
5. Don't set a stop-loss or a take-profit level (it's a rare occasion but stop-loss isn't recommended in this strategy).
6. Right before the end of the weekly trading session (eg, 5 minutes before the end) you need to close the position.

Example

You can see GBP/JPY pair's last 7 weeks (as of May 24, 2010) and all of them have gaps. 6 out of 7 gaps give correct signals that result in a lot of profit. The last gap gives a wrong signal and yields a medium loss. The average spread for GBP/JPY was 3 pips during the example period and all gaps were much wider than 15 pips, making them all qualifying signals. The net total profit was 1,612 pips in 7 weeks — not that bad.

Warning!

Use this strategy at your own risk. EarnForex.com can't be responsible for any losses associated with using any strategy presented on the site. It's not recommended to use this strategy on the real account without testing it on demo first.

EMA 75 SWING STRATEGY

EMA 75 SWING STRATEGY
Time frame :1H Pair :major
Indicators: EMA 75 , YELLOW COLOR
ENVELOPES PERIOD EMA 75 DEVIATION 0.05 BLUE , RED, COLOR ENVELOPES PERIOD EMA 75 DEVIATION 0.10 BLUE , RED, COLOR ENVELOPES PERIOD EMA 75 DEVIATION 0.20 BLUE , RED, COLOR ENVELOPES PERIOD EMA 75 DEVIATION 0.30 BLUE, RED, COLOR ENVELOPES PERIOD EMA 75 DEVIATION 0.40 BLUE , RED, COLOR ENVELOPES PERIOD EMA 75 DEVIATION 0.50 BLUE, RED, COLOR
ZIGZAG , WHITE
SHORT OR LONG POSITION : WHEN PRICE HIT NEAR 75 SMA YELLOW ENTRY AND EXIT PRICE HIT BELOW LAST ENVELOPE LINE AND RE ENTRY THE A SAME RULE.
STOP LOSS ABOVE LAST ENVELOPE LINE .

Simple Price Based Trading System

Back to Forex Strategy List

Simple Price Based Forex trading system — an interesting system that was developed by one of the Forex traders recently. It works for any pair (though, EUR/USD is recommended) and in all market conditions. No indicators are required to trade using this system. All you need is the ability to set up the pending orders.

Features

• Position-based trading for any state of the market.
• Trailing stop protects profit.
• Lack of statistical proof.

How to Trade?

1. Higher timeframe chart is recommended as each trading setup requires some calculations based on the latest bar.
2. Key number should be calculated first. It's based on the current price. For the quotes with 4 digits after a dot the key value is the current price multiplied by 10 and then rounded. For the quotes with 2 digits after a dot the key value is the current price divided by 10 and the rounded.
3. Place pending Buy order at Current Price + (2 * Key value).
4. Place pending Sell order at Current Price - (2 * Key value).
5. Place stop-loss for pending Buy order at Open Price - (2 * Key value).
6. Place stop-loss for pending Sell order at Open Price + (2 * Key value).
7. Take-profit for both orders is calculated similarly to the key value but the current price should be multiplied by 100 for the quotes with 4 digits after a dot and shouldn't be divided for the quotes with 2 digits after a dot. In both cases the values should be rounded.
8. Trailing stop is also applied to the orders and is set to 2.5 * Key value.
9. Don't forget to cancel the untriggered orders after the timeframe period ends.
10. If this sounds too complicated, see the example below.

Example

Let's calculate the entry conditions and parameters for an example presented on the chart:

1. It's a EUR/USD H4 chart.
2. The current price is 1.4810, the current bar's open price is 1.4832.
3. There are 4 digits after a dot in the quotes for EUR/USD. That means that the Key value is calculated as 1.4810 * 10 = 14.8. Rounding it results in 15 pips.
4. Pending Buy order level is calculated as 1.4810 + (2 * 15) = 1.4840 .
5. Pending Sell order level is calculated as 1.4810 - (2 * 15) = 1.4780 .
6. Stop-loss for pending Buy order is calculated as 1.4832 - (2 * 15) = 1.4802.
7. Stop-loss for pending Sell order is calculated as 1.4832 + (2 * 15) = 1.4862.
8. Take-profit for all pending orders is calculated as 1.4810 * 100 = 148.1 or, after rounding, 148 pips.
9. Take-profit for pending Buy order is set to 1.4840 + 148 = 1.4988 .
10. Take-profit for pending Sell order is set to 1.4780 - 148 = 1.4632 .
11. Trailing stop for both orders is set to 2.5 * 15 = 37.5 or, after rounding, 38 pips.

Credits

This trading system was originally developed by The Forexkid . The version presented here has some minor modifications.

Warning!

Use this strategy at your own risk. EarnForex.com can't be responsible for any losses associated with using any strategy presented on the site. It's not recommended to use this strategy on the real account without testing it on demo first.

Profitable strategy for us

a freind & i have been investing in forex for about 10months thru (fx solutions),this is our strategy & we started with $250. & have turned into $5k..we have been using ( CAD/USD), we open 2 accounts and have the same amount of $ in each account.then we ( buy ) with 1 account & the (sell) with the 2nd account both simultaniously.always investing only 40% $ of whats in each account.. 1 account goes positive making $ & we let it ride to see how high it will go,then we close it..the 2nd account goes negative,then we let it (ride out),wait for it to go back to were we bought both at, at this point the negative account is even & now we buy again with the account we closed 1st, and we repeat the same proccess over & over..so 1 account goes positive & 1 goes negative.u cant loose if u have enough $ in ur account to ride out the negative trend...we have never lost $ on forex using this system,u just have to be pacient..i was woundering does anybody else use this system & what do u think about it?

News strategy- As simple as Perfect

FOREX Market traps-Profit from the news traps There are some important thing what a trader has to consider before enter on the biggest and the most dangerous financial market. I am a professional trader of the Forex market so i would like to help for the people who has no knowledge and experience to trade the market and make consistent monthly profit. Every institutional participants has softwares to monitor where are the stop loss-they get this information from the liquidity providers or from central banks where are the prices, where they can buy „cheaper” that is not a secret. But they have stophunter method as well, but the real market traps happening when the fundamental news released when a trader watching the market during the the highest impacted economical news they trade the direction of it cause they think the price will rise or fall all of the day. They set up the stoploss around the place where they entered. And if it is once lot s of stoploss level activating...............the price suddenly will go to the opposite direction most of the situations..... News strategy- As simple as Perfect Most of the people complicate the trading as much as they can. The trading it s easy, if you have strategy, money management and some rules-let s say a trading system. Now i am telling my trading system. I have worked with it and i made from this strategy 5-15 % monthly profit consistently. When a news coming up. For example at 10.30 any highest impact news of the GBP. I check the M15 chart on GBP-CAD or GBPAUD. When the M15 candle has closed at 10.45 i start to trade to the opposite direction. My entry level will be BULLISH if the „news candle” Bearish. I place a BUYSTOP above the news candle 7-8 pips. My stop loss will be under the daily low -5 pips. The Target always 1:1( initial risk) My entry will be BEARISH if the news candle Bullish if it's i place a SELLSTOP under the news candle -5 pips I dont trade if the stop loss bigger than 60 pips. I trade a day once. My risk is 2% of the equity/trade. If the first 3 trade has been lost i reduce the risk from 2% to 1.5 % Try it on DEMO first . It s working on USDJPY, USDCHF, GBPUSD, AUDCAD etc

Very good Hedge Strategy

Hello
i have a good hedge strategy i found it before in the forum but i made some modification on it. The original strategy is a hedging strategy depend on TP=30 and SL=60 and lots sizes starting from 0.1, 0.3,0.6,1.2,2.4 and so on and the TP is fixed
and taking position distance between B/S =20 pips
but my method is
TP=30
SL=40

taking position distance between B/S =10
lot sizes starting up from 0.01,0.02,0.03,0.06,0.12,0.24
as in the following picture
if the first target did not reach and we achieved the second target we will earn
-40+2*30=20 pips
if the second target did not reach to and we got the third target, then we will earn
30-80+90=40 pips
if the third target did not reach and we achieved the forth target, then we will earn
-40+60-120+180=60 pips
if the forth target did not reach and we achieved the fifth target, then we will earn
80 pips
and sixth will be 160 and so on 

200SMA - Simple trading strategy

200SMA is really an awesome indicator just itself. I tell you, use 4H chart and currency pairs as many as 10 or above. You may also use 1H chart but not below that.
Now the trading strategy is:
Keep watching all the pairs by applying 200SMA. Anytime when a candle closes crossing the 200SMA, just open a position following the trend. I would suggest opening 2 positions. One with take profit from 10-15 and when that is been hit, move the stop loss of other position to breakeven. This will save your profit and even if this position hit the stop loss, you are already in profit. What my observation is that when this movement happens, generally price goes as long as 500 pips but I dont want to take the risk in order to earn great money. Other position you can monitor and take profit wherever you want if it is favoring you.

Weakness of Strategies

The strategy did not work well, due to the weakness factor strategies, and (possibly) traders skill weaknesses.
Let us share the experience of the weakness of forex trading strategies.
1. The downside of Hedge Strategy:
Not a profit because of the number of lots that opened balanced.
2. The downside of Trend Strategy:
Failed because of dealing with the large investment that makes a sudden turn.
3. Weaknesses Reversal Strategy:
Failed because the trend is moving towards the opposite.

Candlesticks and its strategy

The candle stick chart is closely related to the bar chart. it also consist of four major prices: high, low, open, and close. the opening and closing prices form the body of the( jittai) candlestick
to indicate that the opening was lower than the closing, the body of the bar is left blank. in its original form, the body was colored red. the current standard electronic displays allow you to keep it blank or select a color of your choice.
why i decided to provide these information is to help beginners understand few things: that may start them off as demo traders. don't feel ever, that these few details are enough for forex trading. i mean, the real.

 Many Trader Use Candlestick Pattern to Entry The Market
Don't Trade If You Don't know this
And Dance with the market after You know this Candle
Bullish Candlestick Patterns
Bearish Candlestick Patterns