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Tips to create your own forex trading strategy PART II

Post on: 13 Апрель, 2015 No Comment

Forex is about gradual success

As we said, there is no elevator to success and there can not be, its all about the long term and gradually achieving the intended goals of yourself.

Step Three choice of currency pair and finding its active trading hours. Currencies have their heroes or behavior. Some of them are extremely active as GBP / USD and GBP / CHF, various indicators set-ups, different values can be used to achieve the best results for each currency pair and of course the biggest profits. It is also a good idea to find necessarily the most active hours for a selected currency pair. These times of currency with the highest activity are easy to find in the table and must be fully exploited in order to get maximum profit during the trading session.

Fourth step select additional marketing tools to confirm the signals received earlier. Once found timeframe indicators and currency pair (s) that react in the best time, we come now to the most important step finding additional tools and indicators to confirm early signals received and will give the green light or action or protect Trader of fake out.

As Trader indicator confirmation can reuse each indicator or trading tool with which he / she is familiar. It is recommended that they be more sophisticated in choosing an additional tool to confirm the preliminary signal. It can be in this ranking, but with different settings.

For example, the original 5 EMA and 10 EMA crossover method you could use another 20 EMA line and have to wait 5 EMA cross 10 EMA (which is the first signal) and continue through 20 EMA (which would be a confirmation of the action). Or instead, you could opt for the indicator MACD this is a very good indicator for Forex, it can reveal a lot of useful information. Finding the best working values structure MACD has its original settings (12, 26, 9), which will perfectly suit your time frame and in a certain behavior of currency you can use it as a great indicator for confirmation to divide most promising positions false losing ones.

Other good indicators and instruments to confirm the signals are RSI, Stochastic, Fibonacci, etc. improvisation and learning. And, of course, the Trader can find the one that produces the best results.