Forex Scalping Systems

Forex scalping has gained high popularity nowadays. We welcome you to explore our free and steady growing collection of Forex scalping strategies and ideas!

Yes, true scalping involves risks as well as any other type of trading.
But if done correctly Forex scalping provides an additional degree of risk management as a result of holding trading positions for a very short period of time as well as constant monitoring of the price and collecting quick profits as they appear.

Please, do not forget to read our disclaimer policy. In short, Forex scalping systems you find below if used will assume trader's own risk and full responsibility.
Scalping Forex is fun. Learn it and trade profitably!

Best of luck in scalping the Forex!
Scalping ideas (ADX and Bollinger bands)

Scalping with the help of ADX:

To scalp effectively with minimum time spent, Forex scalpers need to know when the market is trending well and when there is nothing to wait for.

To find out about the strength of the market trend use ADX (Average Directional Index) indicator.
ADX does not show the direction of a current trend, it only shows the strength of the trend. Reading below 20 indicates a weak trend, reading just above 20 – gaining new strength trend and reading above 40 – very strong trend.

It is that simple – scalping is weak when the market is weak, when ADX deeps below 20 – opt for other life activities, do not sit and waste your time in Forex.

Scalping with the help of Bollinger bands:

Bollinger bands can help determine trends and especially upcoming trend reversals.
When price moves outside the Bollinger bands it is suggests a continuation of the current trend, while bottoms and tops made outside the Bollinger bands change to bottoms and tops made later inside the Bollinger bands suggest upcoming trend reversal.

Scalping system #1 (Economic news releases)
Look for the important news to be released. Choose the most influential ones that are expected to shake the market well. Once got news (last can be found in any Forex economic calendar) find out which currency pair is going to be affected.

Now, 15 minutes before the data is released place buy/sell stop orders on both sides 15 pips away from the current price. Half an hour prior to the big news Forex market usually flats out – no significant trading is done, currency is often “stuck” in a small tight range.

When important news is released, the currency will move easily, producing large pip movements in either direction. Using this scalping strategy, traders will be able to get in and out of the trade in seconds at almost zero risk.
After studying for a while a particular currency pair and its reaction to the news, traders can predict direction of price spikes and the length of the move in pips to set entries and profit targets more accurately

Scalping system #2 (Morning breakouts)

The closer time gets to 8:00 EST in the morning the less movements can be seen on the chart. It is a well known fact that once the Forex market “hears morning bell” at 8:00 am it is going to really move – stretching well doing morning exercises :).

What is needed from traders? Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely.

This is a scalpers’ breakout method, for which waiting long is a losing of precious time. If you want to join big traders your buy/sell orders must be above and below the price range created from midnight to 8:00am EST.
Currency pairs: EUR/USD, GBP/USD.

http://forex-strategies-revealed.com/

Scalping system #3 (2 SARs to go)

Be prepared to watch the price constantly. Monitoring the price is not an easy job.

Trade the most active hours – London and New York.
EUR/USD 5 min
GBP/USD 5 min
(optionally may also trade AUD/USD)
SAR (0.01, 0.1) – on the chart
SMA 8 – on the chart
MACD (5, 8, 9) + SAR (0.01, 0.1) on this MACD

Forex scalping with SAR

SAR defines whether we go short or long. We will take only one type of trades according with SAR signals.
Whichever SAR gives earlier signal – we take it. (Sometimes it can be “chart-SAR”, sometime “macd-SAR”)...

Trading Rules:
When we talk about “trend change” we mean small tiny trends that are actual for us scalpers on 5 minute chart. We do not want to know what is going on 15 min, hourly or even more so daily chart.

With the first SAR dot appearing on the opposite side (the trend has changed) – open one “trial” position Stop loss -12 (spread not included), Take profit +5. Once profit target has been hit – look for the best that current price can offer and open three equal orders. Stop loss for all orders is -12 pips (without spread), profits will be taken next way:

1st order – close in 5 pips and later constant re-entry-scalping with rules described below.
2nd order – close on 14th (or 18th) SAR dot (whichever SAR got first 14 dots – just count them) – this gives us some relief that we have scored something. Also you may not wait till certain number of dots and just close second order where you fill it is a good gain to secure.
Another option: if you are familiar with waves and know what price retracement means, look to close 2nd order after the first, at most second clearly noticeble retracement and once the price has recovered and gave a strong move forward.
3rd – this order remains open and it is our constant relief that we are always earning something as long as both SARs are in agreement that the trend is alive. We close 3rd order only with the first SAR dot (any of 2 SARs) appearing on the opposite side signaling of a reversal.
Or if you feel it is enough for you – do not hesitate and close it earlier!

We trade both currency pairs at once. In total we run 6 open orders maximum.
EUR/USD and GBP/USD have over +90 in correlation which means they move simultaneously almost always. It helps to anticipate good or bad signs watching two pairs at once.

If with the first “trial” entry we have loss, open next “trial” position only when both SARs have agreed on the trend. (You may always wait for 2 SARs to be in agreement before entering any trade, but then sometimes you will miss most of the price move).

Now let’s move to our order # 1 which is going to be reopened to scalp the market with 5 pips in profit.
Stop loss will remain -12 pips. Profit target +5 pips.

Once hit 5 pips and we are on the same candle (price bar) set limit order on the same candle half way from the current price (this is not to be calculated, just approximately, also you may check previous candle extremes and set order accordingly). In other words, “half way” means half of the candle’s current body while the candle continues moving up and down). So, set half way below (for uptrend)/above (for downtrend) the recent price – what we want here is for the price to pull back, fulfill our order and bring us another 5 pips on the same spot. If it does not retrace – we will not worry as we have our two other orders gaining profits for us.

If a new 5 min candle appears, then project (visually) possible future retracement/pullback close to 8SMA and set limit order there – in other words, make your limit order “sit” on the tip of 8EMA line). Reposition your limit order with each new candle.

Now let’s play around 8 SMA. The price really “knows” this SMA.
a) If most of the candle has closed above (uptrend)/below (downtrend) 8 SMA for the first time – buy/sell accordingly.

b) For uptrend when price touches 8 SMA for the first time from above and current candlestick closes above or on 8 SMA – buy, but only if MACD’s histogram is not sloping down and about to cross 0 line or already below 0 line. If conditions are not met – sit and wait...
...And wait for the same MACD’s histogram to go below 0 line with the new candle and create a sharp turn (usually) or a rounding turn (not often). Enter on the close of the current candle after the sharp or rounding turn is spotted.

c) Constantly watch the price approaching SAR dots as once they meet – SAR indicator will signal for the change of the trend with the new dot not matter what, therefore if spotted – prepare to exit – do not wait for the SAR as it will redraw signal only in 5 min interval – valuable time can be lost. Instead watch the price, find the best “offer” and exit early with minimum loss.

If one currency pair is showing change in trend – e.g. got signal on SAR indicator, but the other does not – exit on both anyway. Pairs move simultaneously. So the other reverse signal is on its way to appear. You may find at times that EUR/USD pair usually moves slightly ahead of GBP/USD.

d) If the price for the first time has breached 8 SMA and closed on the opposite side – start watching closely the next 3 candles: if it comes back, closes on your side and goes in your favor – OK, but if price comes back, closes on your side and soon after goes and “attacks” 8SMA again and closes on the opposite side – exit with all you orders at the first suitable moment, because it is a strong (about 80%) sign of the trend reversal.

Once again the safest mode is:
If two SARs are in disagreement – stay out. Once both are telling the same thing – get in.

Happy scalping!

Scalping system #4 (5 pips with GBP/USD)

This simplified trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. Thank you, Alex! His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.

Trading setup

Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)

Trading rules
Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.

Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.

FOREX SCALPING SYSTEM

Now about exits:
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.
Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.

Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.

Happy Forex scalping!

Scalping system #5 (Tops & Bottoms)

Probably the greatest dream of all scalpers is to be able to pick the right top or the right bottom of the price when trading Forex.

We are glad to bring to your attention the system that may become one of your favorite.
To save time we won't re-post it here, please follow next link to read the rules: "Tops and Bottoms" Forex trading System.

Simply follow the rules and aim for a short target/quick profits no matter what time frame you will end up with while searching for the required parameters.

For exits you may follow next suggestions, or create your own rules:
1. Exit on the close of the first long profitable candle when trading 1 hour or higher time frames.
2. Exit after 2 (or 3) consecutive profitable candles from the moment of entry when trading small time frames.
3. Exit with Bollinger Band as described in the strategy.

Happy scalping!

Edward Revy and my best Forex strategies Team
http://forex-strategies-revealed.com/

Scalping system #6 (EMA Bands)

This scalping system was sent by Frank Tenerife (Spain).

Thank you Frank! You contribution is greatly appreciated.

Here is the system:

"This is an efficient system of scalping that works in 1 minute up to 1 day all periods and all Currency

Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Color yellow

Ema 21
Ema 24
Ema 27
Ema 30
Ema 33
Ema 36
color Green

Ema 55 Color Red

Well
The system in The Oanda Forum.

And Way Works is

Buy Or Sell When the Group of Ema`s Yellow Breaks Ema 55
Take Benefit When Yellow Group Touches The Group Green.

If The Yellow group does Pull Back in Ema 55 or In Green Group Buy or sell again

Take Profit 10 Pip in Breaks Ema 55 And take Profit 5 pips In Pull Back

Stop loss 5 Pip 5 Minute Periods

The Good thing is Works with All periods and all the Currency

Forex scalping strategy

Grasias
Frank Tenerife Espa?a "

Happy scalping!

Scalping system #7 (Great GBP/JPY 1M scalping strategy)

So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.

Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:

1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)

(the template for this bollinger bands can be downloaded form this post)

Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.

Sell strategy:

When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.

Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.

Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.

Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.

Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...

Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...

What I would like to do is to study wether to add or not some extra indicators. I attach the results from my last week 102% profit, +80% of profitable trades.

Any help is welcome

Chelo

Template is attached as Zip file and goes in your templates folder in the MT4 directory...

Attachment	Size
scalping.gif	36.44 KB
DetailedStatement.html	38.79 KB
1minuto.rar	501 bytes

Scalping system #8 (1 minute Scalping with Pivot Points) more to come..

The idea behind scalping at Pivot levels is simple. Pivot points are excellent levels of support and resistance. The moment price comes and touches them it bounces off like a rubber ball. Why not benefit from it?

The rules for scalping with pivot points in Forex are simple:

Calculate Daily pivot points for your favorite currency pair. For calculation use data from 5 pm Eastern time to 5 pm next day Eastern time.

Sit and watch 1 minute chart. Be patient. Let price touch any of pivot point lines, or come at least on pip away from it. Believe me, your patience will pay off. The price do touch pivots 90% of the times. 90% is a lot. Enter with larger than you would regularly do order, but be reasonable.

Set stop loss 3 pips + spread on the other side of the pivot line.
Take profit once available - I would usually close my trade within the first completed 1 minute candle and as soon as I'm profitable.

That's it. Enjoy scalping pivots, it's fun which brings profits along.

Forex Brokers that Allow Scalping: Research and Results

the topic of Forex Brokers allowing scalping is very hot.

I was looking for answers in various forums, tried searching with keywords in search engines, tried reading policies and FAQs on the websites of different Forex brokers...
It seemed like I had only guesses, but nothing solid to rely on.

And then I came up with a simple solution - sending customer support inquiries to the different Forex brokers...

My question to all of them was the same:

“Do you allow scalping? By scalping I mean holding a position for less than 1 minute.”

That’s it.
Today, I’d like to share with you what my research has revealed.
So, brokers allowing or not allowing scalping...
I’ve got the answers the same day from the next Forex brokers:

#1 MG Financial Group
Thank you for contacting MG Financial Group. In regards to your
question, you may keep your position open for as long or short a duration of time as desired.

#2 InterbankFx
We do allow Scalping but it might become a problem with our liquidity providers and filling orders etc… We recommend that you stay in a trade for at least 93 seconds. If a customer engages in scalping and it somehow becomes a problem we will notify that person.

#3 MIG Investments
MIG Investments does not require a minimum number of trades per month as neither we require a minimum pip value or open time for positions before allowed to close.

We do accept scalpers but since it is difficult to cover such positions in the market, we would need to increase the spreads for clients with permanent scalping strategies.

We consider an scalpers somebody who systematically pip hunts below 5 pips as average.
All the cases are studied based on general performance and we do get in contact with our clients prior to take any related decisions.

#4 OANDA
The term scalping here primarily refers to latency trading, where clients unfairly exploit, to their advantage, delays that may occur due to the fact that FXTrade is Internet-based.
OANDA does not have any restriction on the length of time a trade is held.

#5 MB trading
Got two short replies:
Yes, scalping is allowed.
Yes you can scalp with us.

#6 Forex.com
Yes, you can do that. As long as you have enough margin to open a position, you can close it at any time during our normal trading hours which is between Sunday 5 pm ET and Friday 5 pm ET.

#7 Global Forex Trading
Yes we do not have any restrictions to the length of time on holding positions.

#8 West Capital Forex
In answer to your question, Scalping is not recommended by our dealers and they actively discourage it.

The next day I've targeted remaining on my list Forex brokers and got next replies:

#9 CMC Markets
You are able to hold a position for less than a minute, however, we do not encourage scalping.

#10 United Global Markets
Scalping is not an issue so long as you are not taking advantage of our price feed lag. We do allow scalping, news trading, grid traders and other in and out traders.

#11 CROWN FOREX SA
Thank you for your interests with CFSA, we are so glad to reply your query regarding allowing scalping.
kindly note scalpers can trade with CFSA under the following conditions:
a. 3 pips spread
b. Max leverage at 1:100 (fixed margin requirements of $1000 per standard lot)
C. Depending on how aggressive the scalper is; a commission per standard lot or an increase in the spread may apply.

#12 IFX Markets
Your question is very easy to answer. We allow scalping, we don't care if we hold your position for 1 second if you can make money that quickly.

#13 FX Solutions
Yes, we do.

#14 Interactive Brokers
Dear Trader,
IB does allow scalping.

#15 Saxo Bank
The answer to your question is yes. You can hold a position for less than 1 minute.
But we don´t allow that you take advantage of the system.

#16 NorthFinance Forex Broker
Please note that we do not allow scalping. We actively discourage the trading method. The minimum required time difference from opening to closing a position is about 10 minutes.

#17 Forex Club Financial Company
Yes we allow scalping. Only thing if you going to request a lot of quotes and not act on them the system will put you on the bottom of the list and you will receive lesser priority.

#18 CMS Forex
We have no age requirement for positions. Be they open for 1 year or 1 minute, you can mange your positions as you wish within our market.

#19 EFX Group
We allow any trading strategy, including the one you mentioned!

#20 Then from the FAQ of Global ForexNow
I've copied next: "Do you allow scalping?
We don’t condone any one particular type of trading style."

So far seems like almost nothing should bring clouds to your sunny sky... Is it really so..?
Opening accounts with each and every of mentioned here Forex brokers and scalping for at least about a month to get a result would be a very difficult task... So, hopefully, we are going to hear from other traders about their experience. Please drop us a line in a form of comment below. Thank you!

There were also two brokers that did not gave a straight forward answer on my question, but to complete my check list report I'm going to cite their replies anyway:

#21 ACM
I would like to take this opportunity to introduce myself as your Account Executive at ACM. In the next few days I will contact you in order to discuss how to use our services to your best advantage.

#22 ODL Securities
I would be happy to answer any questions you have regarding opening an account with ODL. What is the best telephone number to contact you?

Please note, that my research is based not on a real account with each broker and actual scalping with no problems. It is rather a journalist report on some sort of “interview” with brokers’ customer support. So, there is no way I can guarantee that you can go out and scalp freely with any of these brokers.

Tips and Facts about Scalping in Forex

Tips and Facts about Scalping in Forex

The only way to make small account big in a short period of time is through the use of really high leverage. But wait... do not jump of the cliff right away. Start with reasonable leverage for scalping, for example 20:1 or at most 50:1, then move on as you see scalping skills improve. But even before that do not be lazy to demo trade your scalping system – make sure it will not disappoint you later...


The only way to trade with high leverage without risking blowing up an entire account in only 10-15 trades is by trading with a tight stop loss. Trading without stop loss will “kill” your investment in no time.


It is wise to decide on the size of the trading lot and exposed risk in advance.
Do a simple math: calculate the worst possible situation, e.g. 10 consecutive losses in a row; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it...


Although Forex is active 24/7, not every hour is suitable for scalping.
No scalper wants to sit in front of the monitor for numerous hours bored and disappointed with the “sleeping” price as it literally moves nowhere.
Scalpers hunt for volatile, liquid market. There are 4 major market sessions: London, New York, Sydney and Tokyo session. To trade effectively scalper needs to learn behavior of a chosen currency pair and define most active sessions, even particular hours for this pair to be able to catch good price moves.


Another thing to keep in mind is spread which brokers charge for different currencies.
The higher the spread the harder it will be to collect desired pips(because once trading position is opened, trader must cover spread cost – earn pips for broker first – and only then collect own pips).
And, of course, the lower the spread the easier/faster it is to accumulate pips.


Another factor to consider is an average daily range of the price for chosen currency.
The wider it is the more realistic is an opportunity to profit from price moves.
One of the scalpers’ favorite currency pair is EUR/USD with its low spread and good daily price range.


While using high leverage combined with high frequency trading, scalpers should be very cautious about the cost of actual trading, as each pip here makes a dramatic difference after a large number of trades.
This means being very careful with entries and exits, stops and limit orders, and also be very realistic about profit targets.


Once in the trade, scalpers should manage trading risks by:
1) moving stops to break-even as soon as situation permits;
2) taking profits at a logical levels: at round market price numbers: 00, 10, 20, 50 etc., at previous support/resistance levels, at Fibonacci levels etc.
3) getting out of the trade if the price freezes for longer time than expected.


Scalp-trading is very demanding and requires a lot of concentration, constant monitoring of the price and very quick decision making. Also, short time frames used in scalping strategies, require a good grasp of trading complemented with sound technical analysis skills. It is not a place where beginners feel very comfortable as it demands from traders a good chunk of experience.

Scalping involves substantial risks

A lot of beginners have common problem when trading highly leveraged accounts – they tend to maximize profits by trading with full capital at once. Do not do that! Maximizing chances for higher profits goes hand in hand with maximizing risks! The size of positions opened must be calculated very accurately so that your entire account will not be wiped out with just one(!) very unfortunate trade.


Another factor that increases risks for scalpers is the spread traders pay when open a trade.
Each time a new trade is open, the spread cost is paid to the broker, thus opening 10 small trades instead of 1 long term trade increases the cost of trading in 10 times.
If to measure risk/reward ratio of such scalping activity it may show very risky and potentially losing trading.


Example:

With GBP/USD currency pair a scalper sets profit target of 10 pips and stop loss of 10 pips. So far it is 1:1 risk/reward ratio.
In the next step, when the spread is added, the picture changes. For example, the spread his broker charges for GBP/USD is 4 pips.
When scalper opens a position he is -4 pips (the spread has been charged). Now in order for him to reach the target of 10 pips profit, the price has to move +4 and +10 pips = 14 pips.
On the other hand, in order to trigger his stop loss the price should move... -4 is already in place... so, only -6 pips and he will be stopped at total of -10 pips... the risk-reward ratio has changed in over 2:1, not very promising situation indeed...


To understand the full challenge of scalping as a trading style, consider this: hard work and small gains accumulated over a decent period of time could easily be wiped out with one large loss. Finding a balance between profit levels and size of acceptable losses presents the most difficult challenge to scalper’s strategy.

Best of luck in achieving your goals!

Forex Scalping

Forex Scalping can also be called a quick trading. It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that.
(As a rule if a trader holds to a position for more than a minute or two it is considered no longer a scalping, but rather a regular trading.)

The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading mode.

There wouldn’t be any point in scalping for many traders if they weren’t offered to trade with highly leveraged accounts. Only ability to operate with large funds of, actually, still virtual money, empowers traders to profit from even a 2-3 pip move.

How do they do it? Suppose a scalper opens a trading position of 100 000 units with EUR/USD. For each pip he will now earn $10… Closing in with only a 3 pip profit brings it up to $30 — not bad for less than a minute of work…

Now, you would probably ask what Forex brokers think about it, because if a scalper constantly wins, the broker would obviously sustain some losses.
That is why the other popular discussion topic is always at scalpers’ attention: What Forex broker would allow you to scalp the market?

Obviously, dealing desk brokers would not agree with scalpers’ trading style and most likely will ask a trader to change his/her trading habits or to find another broker. But, even if a scalper stays in, there is another method to slow scalper's performance down and it is to set delays between an initiation of the order and its actual filling. The reason behind it is that dealing desk brokers need time to countertrade/process each order to prevent own losses in case a trader closes in profit.

The broker that will not object to scalping is the one that has the best trades processing automated platform. Using straight through processing there is no intervention between a trader and a market maker — the software is taking care of the whole business process. So, it’s more likely a broker with a “slow” business processing platform would object to scalper’s trading style.

You can read some more info about scalping and find useful tips for scalpers at
Now, we welcome you at our Scalping Strategies Collection to discover trading strategies that can be used for scalping in Forex.

Advanced strategies

Along with Forex complex trading strategies this page is expected to gradually reveal our so called Forex advanced trading strategies.

These strategies will have a strong background, sound theoretical base and will represent known to us trading techniques and rules used by experienced Forex traders. We also going to share trading strategies that we use in our Forex trading practice.

Don't forget to read our disclaimer policy.

Also remember that any trading involves risks and there is no trading system which is immune to losses. Your experience may easily start with a losing trade, so before giving up on a system, make sure you've tested it well.

Your discipline is and will always be the key to success. Follow the rules strictly, if modified, write these changes down and do not alter as you trade.

It is promised to be a good experience!

However, there will be no miracles. Those strategies will not be revolutionary Forex strategies of all times or some "Holy Grail" systems to bring you millions, at least we cannot promise that.
What we can promise is that there will be a lot of stuff to learn and ideas to try out.

To achieve this we will do our best

Advanced system #1 (Midnight setup)

Ready to dedicate your midnight hour to Forex trading? This strategy can be your winner.

Trading strategy setup:
Currency pair: GBP/USD or any other.
Time frame: 1 day. No indicators.

Trading Rules:

This system is based on the fact that most of the time you will not find same size candles for 2 consecutive days on a daily chart. What does this mean for us – only one thing: the price is moving steady either up or down with no price “noise” which is always present on smaller time frames.

At 00:00 (your local time) or rather: according to the time set on your trading platform, with newly formed daily candle find highest and lowest price of the day for the previous daily bar.

If the price bar (including shadows) is less than 90 pips long we will not open new trades on the next day. (This is our requirement for GBP/USD pair, it can be changed/adjusted for other currency pairs).

If trading can be done, set Buy stop order at the top of the highest price +5 pips and Sell stop order at the bottom -5 pips.

Put your stop loss order for a Long entry at the lowest price for the day -3 pips.
Put your stop for Short order at the top of the highest price for the day +3 pips.

These additional pips for entries and stops can also be adjusted once a behavior of chosen currency pair is learned over the time.

Now, when one of the orders is filled – stay in the trade for the whole day. At midnight with the new daily bar open, adjust your orders and stops according with the previous daily bar following the same routine; keep trading position open until get +100 pips, then you may close current position to reward yourself. Rewarding is a very powerful tool, use it.

Also close you current position (with either profit or loss) if a daily candle becomes a Doji candle or is almost a Doji. What we mean by “almost” is that for the true Doji you need open price = close price, while “almost Doji” can have some distance between open and close (but no more than 10 pips).

For example: on May 1st at 00:05 am, we opened a daily chart and it was a downtrend. We set our orders: both Buy and Sell according to the previous candle (April 30th). The same day our Sell order gets filled. The day has passed and the price made some further progress down. At 00:05 am May 2nd with a new daily candle appearing we change our stop loss for our current Short position according to the high of the previous bar (from May 1st) and we either continue to stay in the trade or lock in profits. Also we reset our Buy order which is now going to be just above the highest high of the May 2nd price bar.

This system also gives an opportunity to be constantly in trade and at the same time it requires very little observation and takes only 5 minutes to set all positions and forget about Forex till the next midnight. You will see losing trades with this system from time to time – it is a part of any trading, but the overall result will be very positive.

Let’s look at the same chart in more details.

Next is a detailed candle-by-candle explanation of the trading on the chart above.

We will number candles starting form 1 – so number 1 is a circled candle.

1 st candle (high – low = over 90 pips) - allows entries next day. We set orders.
2st candle – the price didn't get above or below the 1st candle, no orders filled. Midnight: 2nd candle is over 90 pips long, so we reset orders according to 2nd candle’s high and low.

3nd – buy order filled. Midnight: day ended negatively, but didn't trigger the stop loss, we keep our position open and adjust stop loss below the low of the 3rd candle and minus additional 3 pips. The 3rd candle is also less that 90 pips long and we wouldn’t trade the next day except that for now we have already one position running.

4rd – went in profit and we rewarded ourselves closing position at the end of the day with just over 100 pips (you can actually set your target lower than that, and use 100 pips as a suggestion).

Choosing a profit target for the day becomes easier when you know a daily range average for a particular currency pair.

For example,
GBP/USD daily range average is 180-200 pips
EUR/USD daily range average is 110-120 pips
USD/JPY daily range average is 80-90 pips
USD/CHF daily range average is 120-130 pips

Taking about a half of it can determine your profit targets.

5th – no trading as the price didn’t exceed previous candle boundaries. Midnight: candle #5 is less than 90 pips, thus we are not setting any orders for the next day.

6th – we didn’t trade it and for a good reason – price managed to get below and above the previous candle’s high and low, which could mean for us hitting our stops, in worst case - twice.

7th - we had our stop loss below the low of candle 6, this trade is a reward again – more than 150 pips, so we lock it... and for a good reason...

We will have systems that will be able to easily allow trades running their positions further relatively safe, but for this one it is important to lock your profits – the reason is that we move our stop order every day.

8th – no trading opportunities. Midnight: candle 8th is less than 90 pips means we are not going to trade next day.
9th - no trading and we were very right about it. Midnight: 9th candle is long enough for us to set targets for the next day.
10th – no orders triggered. Midnight: 10th candle is long enough again which allows us to reset our orders.
11th – we sold, the day ended in profit, but the profit was relatively small, so we are going to stay in trade.
12th – brought us 100 pips at the end of the day and we go out taking profits. Also we reset orders for tomorrow.
13th – Long order was triggered and price made some progress during the day, but closed almost at the same level. We stay in and adjust our stops.
14th - our stop loss is hit and moments later buy order is filled. The price closed below our order, we stay in trade.
15th – we are almost at breakeven, but nothing to earn, we stay in trade.
16th – brings us loss again as our stop loss is hit; a short position is filled soon after and so on...

Happy trading!

Advanced system #1-a (Midnight setup addition: Trading Breakouts of the Breakouts)

Current trading method was developed as an addition to original Midnight Setup strategy, but can also be traded alone or in combination with any other Forex strategy.

The idea is to filter out some big portion of false breakouts in our case above/below daily candles.

Setup: daily charts and 5 min charts, no indicators.

Entry rules:
Using rules from Midnight Setup strategy we get ready to enter on the break of the daily candle's high or low.
However, this time instead of placing Buy/Sell stop orders above/below daily candle, we aren't placing any, but rather waiting for actual breakout to occur. Would be a good idea to set an alert signal on a trading platform that will call us when the first breakout is in place.

Immediately after a breakout above/below daily candle on daily charts we go to 5 min charts, where we wait for the price to finish its first advance and start retracing back.

Here comes the idea of Trading Breakouts of the Breakouts:
On 5 min chart we mark the very first extreme level set by the price (highest high or lowest low depending on the breakout direction) and place Buy Stop or Sell Stop orders +10 pips above/below that extreme. This way our order will be triggered only if the price confirms its directional intentions... Otherwise, it was a false breakout.

Quite often after the breakout on Daily charts, 5 min charts first extreme point reveals the real nature of the breakout. Price may never reach that extreme again, or it can come and make double top/bottom pattern and back up. Not all but many losing trades can be avoided by Trading Breakouts of the Breakouts.

Along with advantages, there are some not very critical disadvantages of this method:
First of all, we are going to enter a bit later after the initial daily breakout and thus will definitely miss some pips from the starting breakout point.
Second, if the breakout is extremely powerful, our 5 min retracement may never come or come way too late. Chances for that are quite small, usually there is always something to spot on 5 min charts, but exceptions may occur.
Third, you can't set it once in the morning and forget about it for the rest of the day. You need to be there to spot the first 5 min retracement and set appropriate orders.

Happy trading!

Advanced system #2 (Fibonacci trading)

The fact that Fibonacci numbers have found their way to Forex trading is hard to deny.
Moreover, trading currencies with Fibonacci tool for many traders have become the bread and butter of their whole trading career.

So, shall we look at the one of such good Forex trading systems today?

Trading setup and tools we need:
Time frame: 3 hour (or 4 hour).
Currency pairs: any.
Indicators:
Fibonacci tool - our main tool
EMA 100 – green (visual guidance)
SMA 150 – red (visual guidance)
RSI (14) on a daily chart

We will be working with next Fibonacci retracement levels: 0.382, 0.618, 0.250 and 0.750.
Default stop loss – roughly 100 pips and then adjusted according to the most recent swing high/low.
Profit target – no target is set as we will let the profits run.

Trading Rules:
Find the closest to the current price wave with a distance from High to Low over 100 pips.
Apply Fibonacci on it no matter if the wave is going up or down, only size matters.

Some terms we are going to use here:
The corridor between 0.382 Fibonacci retracement level and 0.618 retracement on the chart – will be called a “must channel”.
Fibonacci retracement levels will be numbered always from bottom to top, no matter whether it is an up or a down wave. E.g. at the bottom we will always have 0.250, then next 0.382, 0.618 and finally on top – 0.750 Fibonacci retracement level.

Entry rules:
Always enter only according with both:
1. EMA and SMA trend suggestion (e.g. green on top – uptrend, red on top - downtrend)
2. RSI suggestion (e.g. reading below 50 – only sell orders, above – only buy orders).

Now, after applying Fibonacci on a wave bigger than 100 pips we wait for the price to go inside a “must channel” area (at least to make 1 pip into the channel). Only then next rules will be valid:
- If a full candle (including shadows) is closed below 0.250 Fibonacci retracement, we go short. If we are currently long – it is time to close long position – it is an exit rule as well.
- If a full candle (including shadows) is closed above 0.750 Fibonacci retracement, we go long. If till this time we had short positions open – we close them – and again it is an exit rule as well.

Important: once another wave greater than 100 pips occur, set a new Fibonacci on the new wave. Retracement levels will change and so we will now follow new retracements.
(Optional: for visual aid traders may mark old Fibonacci wave to see the general pattern of consecutive waves on the chart).

That’s it. Stay in trade, resetting Fibonacci with each new wave and moving a stop loss according to the last swings high or low (in simple words, a stop loss will be always just below the Fibonacci 0% line) until it is time to close the position according to our rules.

This strategy prevents a lot of “bad” entries, eliminates early exits and allows staying in trade for a long period of time helping to take everything a current move can offer.
Traders may close all good winning positions on Friday evening if they prefer not to hold them over a weekend.

To your trading success!

Advanced system #3 (Neat entry: RSI + Full Stochastic)

Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.

Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.

Trading rules:

Entry for uptrend: when the price is above 150 SMA look for RSI to plunge below 20. Then look at Stochastic - once the Stochastic lines crossover occur and it is (must be) below 30 - enter Long with a new price bar.

If at least one of the conditions is not met - stay out.
Opposite for downtrend: when the price is below 150 SMA wait for the RSI to go above 80. Then if shortly after you see a Stochastic lines crossover above 70 - enter Short.

Protective stop is placed at the moment of entry and is adjusted to the most recent swing high/low.

Profits are going to be taken next way:
Option 1 - using Stochastic - with the first Stochastic lines cross above 70 (for uptrend) / below 30 (for downtrend).

Option 2 - using a trailing stop - for an uptrend a trailing stop is activated for the first time when Stochastic reaches 70. A trailing stop is placed below the previous bar's lowest price and is moved with each new price bar.

This strategy allows to accurately pin-point good entries with sound money management - risks/protective stops are very tight and potential profits are high.

Current trading strategy can be improved when it comes to defining the best exits. For example, once in trade traders may also try applying Fibonacci studying to the most recent swings. This way they can predict short-term retracements and make sure they will not be pulled out of the trade early and will continue pursuing profit targets at Fibonacci extension levels.

Profitable Forex trading to everyone!

Advanced system #4 (Early bird Breakout System)

Another advanced morning strategy tightened to the timing factor and only two currency pairs.

Trading setup:

Time frame: 1 hour.
Currency pair: preferred but not limited to EUR/USD and GBP/USD.
This Forex breakout system uses no indicators.

Trading rules:

The system is called "early bird" because it requires a trader being ready to trade Forex as early as 5:00 am EST.

Find the Highest High and the Lowest Low for the candles from 00:00 EST to 4:59 am EST. (We should have 5 candles for each hour: 0, 1, 2, 3 and 4).
At 5:00 am EST set 2 entry orders: buy order - above the highest high +5 pips, sell order - below the lowest low and -5 pips.

Set initial profit target to +90 pips for EUR/USD and +140 pips for GBP/USD - both targets are way too high if to consider that daily range average for EUR/USD is only 110-120 pips and daily range average for GBP/USD is 180-200 pips.
If those targets get hit - very good! However, our profits will be determined mainly by the time factor instead of a fixed amount of pips.
So, we close all open positions at 12:59 EST (1:00 pm EST) and cancel all remaining orders. The next trading opportunity - only next day at 5:00 am EST.

Setting Stop Loss orders:

Stop loss for Buy order should be placed below the found earlier lowest low -3 pips, for Sell order - above the highest high +3 pips. If a stop loss is hit most likely traders will see an opposite position open. Stop loss should never be moved.

To your trading success!

Advanced system #5 (Trend Lines Breakout System)

Breakout systems like this are always in great demand. It is quick, easy and with a proper use has a true winning rate of over 90%.

Currency pair: GBP/USD, EUR/USD - tested. Other pairs may also be used.
Time frame: 1 hour.
Indicators: none.

Trading setup:

For this Forex system to work properly a trader needs to know the basics of identifying swings high and low, rules of drawing trend lines, plus be able to use Pivot Points.
These are very simple things we believe every trader should know.

Our working range includes 5 candles: from midnight to 4:00 am EST (including the 4:00 am candle).
Optional: draw a midnight vertical line for visual aid.

Within those 5 candles look for a valid swing high and a swing low of the price.
Draw an Downtrend trendline connecting a found swing High to the most recent swing High of the previous days. (Make sure the last one is valid High to draw an Downtrend trendline through it).
Do the same for the swing Low: connect it to the most recent swing low of the previous days, make sure you are pulling the right trend line using the rules of drawing Uptrend trendlines this time.

If a trader sees, for example, no Swings High in the 5-candle range, that means there will be no downtrend trendlines this morning.

The Entry is on the break of either one of the trendlines and is immediate without waiting for a current candle to close. A protective stop is placed just above/bellow the candle that broke through the trend line.

Profit target:

Usually the whole action is unfolded within the next three candles (count in the candle that had violated the trendline but only if it closed on the other side of the trendline).
So, after the actual breakout we have 3 hours or 3 candles to trade, after that we will exit with whatever profits are made.

Main rule: Using Pivot points + timing

Profit target is going to be the nearest level of support or resistance according to Pivot point levels.
If, however, after only one candle this target is reached, it suggests a very strong market, thus we would stay in trade and set the goal for the next support/resistance level. We would also choose the second Pivot point level of support/resistance as our profit goal if the first Pivot level appears to be too close to our entry point.
We have three candles to trade after the breakout, that's why we can trade calm and allow our goal to shift to the next Pivot Point level.

It is an absolute traders' discretion of whether to set the target at the nearest Pivot point support/resistance level and leave the trade once the target is hit or using a timing factor exit after the two / maximum three consecutive candles.

Tip: running two orders can save lots of nerves. First target - the nearest Pivot point support/resistance level. Second - on the close of the third candle.

Another simplified option would be with fixed targets and timing

For example, EUR/USD target = 20 pips - spread, GBP/USD = 40 pips minus spread. These are only suggestions, and for other currency pairs = testing will tell...
Hold position open for the next three candles.
If the target is not reached within those three candle, close all trading positions anyway.

That's it. Simple and very effective.

Happy Forex trading!

Advanced system #6 (Picking Tops and Bottoms)

Were you told not to hunt for tops and bottoms when trading..?
Why not break the rules when you can tell with an astonishing precision where the next top or bottom will be?
Here is one very nice and accurate trading system that could make your Forex trading entirely about hitting the right spots.

Trading setup:
Time frames: 5, 15, 30 minutes, 1 hour, 3 hour and 1 day – just one chart at the time will be used.
In case you do not have the exact time frames, simply substitute them with the closest ones. For example, 15 min can be changed to 10 min, 3 hour can be changed to 4 hour etc.

20 EMA and 40 EMA on all time frames
ADX 14 for all time frames.
Currency pairs: any.

The idea behind this Forex method is that ADX helps to measure the strength of the trend while 20 EMA acts as a flexible support-resistance line.

Trading rules:

Our first goal is to find the chart with ADX being over 30 mark, which will indicate a strong trend. We start with a daily chart and continue the search moving downwards (3 hour, 1 hour, 30 min, 15 min, 5 min) until we find the chart with ADX being currently over 30.

Note: In case several time frames meet requirements for ADX, we opt for the highest time frame. That's why we start with the highest frame first.

Having chosen the time frame, we are ready to trade the first bounce off of the 20 EMA. We set a limit order close to 20 EMA accordingly: in a downtrend we expect the price to touch 20 EMA from below, then reverse and move down, in an uptrend – from above, reverse and move up.

Always make sure that at the moment of entry you are using the highest time frame with ADX currently over 30. Only then you can expect the price to obey 20 EMA.

That's it.

Initial Stop loss order is placed above (when short) / below (long) the 40 EMA.
Important note: once in the trade stay with the time frame used for entry.

Risks: looking at the charts traders will find that at times the price reverses exactly at 20 EMA, but sometimes it moves even further before making a u-turn. Always be ready to leave some room for the price to make this turn, that's why we suggest using 40 EMA for stops.

Exit rules:

Option 1: Use Bollinger Band with settings (18, 2) for all time frames. Set a profit target at the outside band. Move your profit target as the Band expands or narrows.

Option 2: For traders familiar with Fibonacci tool, profit target can be set to 1.618 expansion level. AB Swing for Fibonacci should be found from the earlier price moves and the actual point of entry should be considered as point C or a retracement.

Option 3: Once the price clearly moves in your favor move the stop below/above (Long/Short trading) the previous price bar. Adjust the stop with each new price bar. Trade until stopped.

Also exit always if ADX goes below 30 on the time frame which was used for entry.

That’s it. Test it and see that it works remarkably well.

P.S. Accuracy of this strategy is quite difficult to backtest/visualize using historical data. If you decide to do so, make sure you do it right and know what time frame should have been chosen for trading at any given time. The easiest way to analyze current strategy performance is by running it in real time.

Happy trading!

Advanced system #7 (EUR/USD breakout system)

We've created a new page for discussions of the new Forex System that was kindly posted by our Visitor. Thank you for taking time and efforts to share this Forex system with us!

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What is ur comment on this similar system
time frame 1 hour
ema(144) and ema(169) and sma(400)
System uses highest high and lowest low of candles from 1.00 GMT to 6.00 GMT
conditions needed to make trade:
1- Entry price must be away from Vegas tunnel and/or SMA(400) at least 35 points (rebound zones)
2- Orders are set after the close of candle 6.00 GMT

Put buy stop order at the highest high + 5 pips
Put sell stop order at the lowest low - 5 pips
Stop loss orders are put at lowest low - 3 pips and at highest high + 3 pips consecutively
Limit orders = stop loss count value + 15

http://img89.imageshack.us/img89/1611/ddzd5.gif

Pair Eur/USD
chance 1
no short orders because price is near vegas tunnel
Long order was not taken on 1.4267+5=1.4272 because it is not hit
Chance 2
No short orders again for same reason
Long order was taken on 1.4276+5=1.4281
stopp loss =1.4247-3=1.4244
limit=(1.4281-1.4244)+15=52 pips
limit is at 1.4281+52=1.4333
Chance 3
Short order was not taken as 1.4315-5=1.4310 was not hit
Long order is taken as 1.4338+5=1.4343 was hit
entry: 1.4343
stop loss at 1.4315-3=1.4312
limit= (1.4343-1.4312)+15=46
limit is at : 1.4343+46=1.4389

Advanced system #8 (4 CANDLES STRATEGY) more to come...

The following strategy was submitted by James Ayetemimowa.
Thank you, James, for your great contribution!

CURRENCY PAIR - GBP/JPY

4 CANDLES STRATEGY
- Draw horizontal lines on the highiest high and the lowest low of the first Four candles of the day.
- Trade the Valid Breakout of the eigther lines.
- Check Stochastic Slow on 4hours Time frame.
- Trade the direction of the 4hours stoch with higher quantity
- Trade direction against 4hours Stoch with lesser Quantity
- Target the first 50-100pips
- Your stop loss should be the other side of the tunnel
- If your stop loss is hit, set the pending order again.
- Close all pending orders by 5 hours to close of the day.

GOLD
- Plot the Pivot first
- Check the relationship between the pivot and the opening price
- Place Stop Buy 200pips above previous day close and Stop Sell 200pips below Previous day close
- Plot the -+200 above and target the next 200pips or next pivot, whichever is lesser
- A day where the opening price is at the middle of a pivot and a middle pivot, please don’t trade the -+200 consider NO TRADE or wait for price to hit middle of pivot or pivot then apply -+200 from that point.
- Note and Note, any of such potential trade after you must have made your 200pips, you must always lock profit to 100pips b4 you can let it run.

James Ayetemimowa (femjam78 at yahoo.com)

http://forex-strategies-revealed.com/

Complex strategies

Forex complex trading strategies are those that include more than three technical indicators for generating signals and have a number of important rules to use as a complex technique in trading.

Attention all users: trading strategies are posted for their educational purpose only. Trading rules may be subject to interpretation. Risk levels may be increased dramatically under extreme market conditions. Use and/or modify the ideas to create your trading style/system, but only at your own risk. We strongly recommend testing strategies on demo accounts before investing money.

Again those strategies will be free and will have illustrations, examples, analysis and recommended trading set-ups.

This should be a good strategic base for every trader to explore something new and improve own trading systems and techniques.

The fact is, complex strategies sometimes get unnecessary complex. But even then it will not stop most of the traders from testing and applying them in Forex trading. Here we have a new level of strategy making: you can either simplify the system you like, adopt its rules completely and trade happily or
just make some useful notes for yourself and move on.

Stay tuned!

Complex trading system #1 ("Multi-conditional")

Currency: ANY
Time frame: 1 hour + 30 min + 5 min.
Indicators: 14 EMA, 21 EMA, 50 EMA, Bollinger Band (20, 2).

Entry rules: Enter on 5 minutes chart.
On 5 minutes chart, for uptrend:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...

go and check 30 min chart:
if price bar is a up-close bar and sitting on 14 EMA or 21 EMA
and same again:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...

go Long...

OR go and check if 1 hour chart meet same conditions as for 30 min chart and then go Long.
If at least one condition is violated – stay away.

The reverse is for the downtrend:
Enter on 5 minutes chart.
On 5 minutes chart, for downtrend:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...

go and check 30 min chart:
if price bar is a down-close bar and touching 14 EMA or 21 EMA
and same again:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...

go Short... or go and check same rules for 1 hour chart and only then enter Short on 5 minutes chart.

Exit rules: exit when any of the conditions is violated or when the profit is high enough to close the trade.

Complex trading system #2 (“2-Cross”)

Currency: GBP/USD (preferred) or any other.
Time frame: 3 hours (preferred) or 4 hours.
Indicators:
SMA 200, SMA 100 – these are two influential SMAs; you will find price “obeying” their boundaries.
SMA 15
EMA 5
MACD (12, 26, 9)

Trading Rules:
Since we are dealing with “unpredictable until set” indicators (EMA, SMA, MACD) we will always be using signals AFTER the current signaling candle is closed.

1. Never open a trade if price is less than 25 pips away from 100 SMA or 200 SMA.

2. Do enter the market when price has crossed either 100 SMA (expect large move) or 200 SMA (expect very large move) and only after the current candle has closed on the opposite side of the SMA. SMAs this big do not get crossed very often.

3. Set stop loss initially at 50 pips. Look for nearest support/resistance level and adjust it accordingly – it could grow up to 70-90 pips but it should not be less than 40 pips. Anyway this measure is taken only to save us from sudden “exploding market”, in all other cases it will not be hit as our system will take you earlier from the trade.

4. Enter in the direction of 5 EMA once two conditions are met:
1) 5 EMA crosses 15 SMA “permanently” – which means the current candle is closed and lines are “locked” and will not move misleading us.
2) MACD lines are crossed, and the current candle is closed.
The 2 crosses do not have to happen simultaneously. MACD lines can cross earlier than EMA and SMA or shortly after, but there should be no more than 5 candles in between 2 crosses.
If “2-cross” condition is not met – no entry.

Exit rules: exit with the same rules as for entry: when two crosses are in place. If we have only one cross – we are still in trade.

Profit target:
a) can be set to a desired amount of pips and followed with trailing stop further once the target is reached.
b) or use 50 pips profit target – do start chasing the price with trailing stop after gaining 50 pips.
c) or you may not use trailing stop and set no profit targets, then exit according to Exit rules – on the next “2-cross”.

Let’s walk through the numbers:

#1 – EMA 5 crosses 15 SMA, MACD lines also crossed, price is not close to SMA 100 – we place Long order.

#2 – again we have 2 crosses: moving averages cross and MACD – we exit Long and immediately place Short order.

# 3 – 2 crosses are in place, by the time our current signaling candle is closed we are already far enough from 100 SMA, so we close Short and open Long position.
Yes, till this point we were trading in sideways moving market – so no profits here, may be some small negative results. Solution – trading only during active hours, for GBP/USD it is London and New York sessions.

#4 – As we were Long – this point is our exit (“2-cross” condition is met again)
and immediately place Sell order.

#5 – moving averages on the chart have crossed, however MACD – does not, we stay in trade.
We watch price passing 100 SMA and closing below it – it is a good sell signal, but we are already trading it.

#6 – first appears MACD crossover, followed by moving averages crossover – at this point we close our Short position. Do we open Long position immediately? No, because we are very close to 100 SMA. We need to wait until candle passes and closes above 100 SMA to open a Long trade. Once it happens we are in trading Long.

#7 – MACD lines has attempted to cross, but nothing to worry as there is no second cross from moving averages.

#8 – same as #7.

#9 – time to finally close Long position and go Short.

Best of luck in your Forex trading!

Complex trading system #3 (Divergence)

Currency: EUR/USD (preferred) or any other.
Time frame: 30 min.
Indicators: MACD (5, 26, 1) – draw 0 line,
Full Stochastic (14, 3, 3)
EMA 3
SMA 13

Trading rules: watch for divergence between the price on the chart and MACD or between price on the chart and Stochastic.

Once divergence spotted, wait for EMA 3 and SMA 13 to cross and enter the trade in the direction of EMA 3.
Set stop loss at 26 pips.
Take half of the profit at 20 pips; let the rest to run further with trailing stop in place.

Divergence on Stochastic can be found the same way as on MACD. The reason for using both MACD and Stochastic is that one of the indicators can show divergence while the other will not at given period of time.

http://forex-strategies-revealed.com/

Complex trading system #4 (Trend trading with EMAs)

Trading strategy setup:

Time frame: 1 day, 1 hour or 30 min.
Currency pair: any.
Indicators:
80 EMA
21 EMA
13 EMA
5 EMA
3 EMA
RSI (21)

Trading rules:

80 EMA suggests a major trend direction.
When the price is traded above 80 EMA – uptrend, opposite for downtrend.

21 EMA and 13 EMA give a current trend direction.
While 13 EMA stays above 21 EMA – uptrend, opposite for downtrend.

RSI (21) above 50 mark suggests an uptrend, below – downtrend.

Entries are made on a cross of 3 and 5 EMA in the direction of a trend:

Buy when 3 EMA crosses 5 EMA upward in an uptrend market AND both 3 and 5 EMA cross a channel of 13 and 21 EMA AND RSI is above 50.
Entry with Sell order when 3 EMA crosses 5 EMA downward in a downtrend market AND both 3 and 5 EMA cross the 13 and 21 EMA AND RSI is below 50.

Note that additional entries are possible when 3 and 5 EMA cross back and then shortly after make a signalling cross again.

Note, that when we get the signal to enter we always wait for the current price bar to close and only then (if conditions nave not changed) - open a position.

Exit rules: when 13 EMA crosses 21 EMA back.
Keep an eye on 80 EMA, also watch RSI 21 to cross 50 point mark again - both will suggest immediate exits.

P.S. For more conservative trading take positions that do not contradict with 80 EMA's trend suggestion.

Happy Forex trading!

Complex trading system #5 (Fibonacci trading)

We were asked to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.

When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries with high chances to win and what's more important it should be able to tell exactly where to exit without need to constantly monitor the price.
Note also, the more traders look at charts, the more they tend to have controversial feelings about the success of a current open trade...

With all this long introduction, it is only left to mention that this strategy will require from traders basic knowledge of use of Fibonacci tool.
What is Fibonacci tool and how to use it? Simply Google "forex fibonacci" phrase and you'll find a lot of information about it.

...This is probably the only reason we classified this trading system as Complex one, not every trader is comfortable with using Fibonacci studies in Forex.

Trading setup:
Time frame: any over 5 min and less than 3 hour.
Currency pairs: any.
Indicators: 5 WMA

Rules:

Look at the price waves. Find the most recent swing high and the most recent swing low = so called Fibonacci A swing and B swing.

Pull Fibonacci from A to B.
To know which direction to pull (up or down) simply look at the trend; if it is unclear, find appropriate AB swings and set Fibonacci in both directions.

Once set, wait and watch the retracement from AB swing to unfold.
During the retracement there are three conditions to be met in order to consider trading:
1. The price must touch 5 WMA.
2. The price must at least touch 0.382 Fibonacci retracement level.
3. The 0.618 Fibonacci retracement level must not fail. Here it means the price should not close below (uptrend) / above (downtrend) 0.618 retracement line. It can touch or poke it, but the level must withstand the "attack".

When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry, below - for Short.
Stop order is placed always 4-5 pips above (downtrend) / below (uptrend) the 0.618 Fibonacci retracement level.
Profit target is set to 1.618 Fibonacci expansion level derived from point A.

Master your Fibonacci trading!

Complex trading system #6 (Munzer Forex System)

Munzer - South Lebanon submitted own Forex system:

"Hello
I am using this strategy and it works well with me
I like to share it with others
This website is the best I have got use off

Mine is on 1 hour chart:
Two EMA of settings 5 and 15 - close
Two EMA of settings 144 and 169 - close- vegas 1 hour tunnel

asctrend2 for determining stop
MACD settings 12,26,9
RSI settings 21
Trend trigger mod

Entry long:
EMA 5 and 15 crossover upward
crossover of MACD lines upward
RSI(21) > 50
and TrendTriggerMod upward

Short entry:
EMA 5 and 15 crossover downward
crossover of MACD lines downward
RSI(21) <>

Hint1: do not make the trade if trendtriggermod do not agree the others
Hint2: beware of the 2 EMA's 144 and 169 They work well as Support and
Resistance

Exit: Use new crossover of MACD lines

Stop loss depends on asctrend2 or use ATR(14)*2"

Munzer, our greatest appreciations for contributing this Forex system!
Thank you! Well done!
(Forex Strategies Team http://forex-strategies-revealed.com/

Complex trading system #7 (Mohammed Munzer Forex system) more to come...

Current Forex system was submitted by Mohammed Munzer - our valued contributor.

hello all
timeframe: daily
EMA(34)
SMA(150)
Double CCI (CCI=50 and CCI=14)
Full stochastics (5,3,3)

- When price is between EMA(34) and SMA(150) Do not trade

- Trade long when EMA(34) is over SMA(150) and a daily candle crosses
EMA(34) and closes over it by putting an entry order 10 pips above the
candle's high taking into consideration that stochastics lines are up and
not in the overbought zone

- trade short when EMA(34) is below SMA(150) and a daily candle crosses
EMA(34) and closes below it by putting entry order 10 pips below the
candle's low taking into consideration that stochastics lines are down and
not in oversold zone

- Exit depends on stochastics lines crosses
Stop loss= 75% Daily ATR

- You can repeat entrys after retracements towards EMA(34) or towards "NO
TRADE ZONE" depending on double CCI patterns trend continuation and trend
line break only if stochastics and entry conditions returns valid -closing
above EMA(34) for long or below it for short and with entry orders 10 pips
above for long and below for short.

Thank you once again!
Forex Strategies Team http://forex-strategies-revealed.com/