Starting Forex Strategy

There are a few basic things that you should aim to achieve in creating a strategy for Forex trading:

1 Find the entry points as early as possible.

2 Find exit points providing maximum benefit.

3 Avoid false input and output signals.

If you realize these goals, you will get a very reasonable trade system. So where to start?

Select Time Frame. This is the first step where you will first need to ask yourself: how many hours you want to devote your trade? Would you prefer to sit in front of the monitor continuously for several hours? Or maybe you want this to happen for a short period of 5, 15 or 30 minutes time frame, which will require close monitoring of the market and react quickly to price?

Will you be more comfortable with the setting of the charts once or twice a day and never turn off the monitor during the rest of the time?

It is a good idea to arrange a comfortable leisure you have available to you can spend in the world of Forex. But in testing new strategies, you can find out more about their performance in different time frames and then choose the most accurate and profitable option.

The second step is the choice of instruments for trading. There are plenty of commercial tools and indicators available for forex traders, but not all of them can provide the fastest signal upcoming trading opportunities. And the aim of traders, of course, is to get the maximum profit at the earliest and take full advantage of the price move.

Among the indicators that can provide traders with fast signal upcoming changes and possible trading opportunities, such as EMA (exponential moving average), SMA (Simple Moving Average), Parabolic SAR, Fast, Slow and Full Stochastic, MACD and other. The key point here is to fully understand the principles of their work, they can make the most of the signals that produce these indicators.

One of the most common ways to find a place on the upper end, as quickly as possible, to use sliding averages. With such a simple strategy using 5 EMA and 10 EMA crossover will appear reversal of the trend and new trade opportunities even at the earliest stage.

Another example is the Stochastic lines crossover and MACD lines crossover. The idea behind this is simple: when two lines intersect trend, it moves in the opposite, and arises as a new opportunity for entry. In Stochastic and MACD indicators use moving averages.

By combining the performance of the graphics one by one and experimenting with performance-values​​, good traders can create optimal and fastest way to find the beginning of trade opportunities.

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