TODAY'S TRADE ON 18-08-2008

TODAY'S TRADE ON 18-08-2008

 

GBP/USD

BUY  @1.8002 SL30 PIPS TP 30 PIPS

SELL @1.8552 SL30 PIPS TP 30 PIPS

 

GBP/JPY

BUY  @206.32 SL40 PIPS TP 40 PIPS

SELL @203.06 SL40 PIPS TP 40 PIPS

 

USD/JPY

BUY  @110.96 SL30 PIPS TP 30 PIPS

SELL @110.14 SL30 PIPS TP 30 PIPS

 

 

200 EMA Indicator for Intra-day trading

Are you a relatively new trader looking for a solid forex strategy?
A challenge facing many new traders when developing their forex strategy is the ability to identify the overall trend for intra-day trading.
The 200 EMA (Exponential Moving Average) can solve the problem.
The 200 EMA is one of the most popular indicators of all time with Forex traders the world over, and for that reason alone is worth noting due to the psychological effect on the market place price can have when hovering around the 200 EMA.
To use this very powerful Forex strategy, create charts on 3 time frames:
• 4 hour
• 1 hour
• 15 minute
Now plot a 200 EMA indicator on each chart and, as a suggestion, color it red, for easy visual impact.
Preferably tile the 3 windows containing your 3 charts into a vertical fashion so you can see the 3 time frames next to each other. It will squeeze up the information on the charts somewhat but for the purpose of this strategy that doesn't matter.
Now scroll through the various currency pairs you like to trade. If you prefer to trade only pairs with a smaller pip spread, they amount to about 9. They are:
• EUR/USD
• GBP/USD
• USD/CHF
• USD/JPY
• EUR/JPY
• USD/CAD
• AUD/USD
• NZD/USD
• EUR/CHF
Watch For This Setup
What you are looking for is any currency pair that bucks the 200 EMA on the 15 minute chart.
So for example, look at the EUR/USD pair and note the position of price relative to the 200 EMA on the 3 time frames.
If price is well above the 200 EMA on the 4 hour chart, well above the 200 EMA on the 1 hour chart, but BELOW the 200 EMA on the 15 minute chart, price is bucking the trend.
The overall trend is up, price has temporarily gone against the trend and is currently in a retracement.
Using the fundamental trading principle of buy the dips in an uptrend, sell the rallies in a downtrend, look for a suitable entry point.
In the example given above you would look for an opportunity to buy the EUR/USD, perhaps watching for a candle signal that price has exhausted it's downward momentum, bucking the 15 minute chart 200 EMA and will soon resume it's upward momentum.
An Easy Daily Exercise
This is an easy exercise and it can be done once or twice a day, taking just a few minutes.
Once you see price bucking the 200 EMA on the 15 minute chart, whereas it is on the opposite side on the 4 hour and 1 hour charts, sit up and take note. Watch carefully and grab the opportunity to get in and make some pips.
After a little practice you will see how extremely powerful this simple Forex strategy is - certainly deserving a place in your trading tool kit.

BB-Width Indicator and Breakouts

The following 1-Hour chart shows the CADJPY in the midst of a long term trend to the upside. Below this chart the BB-Width indicator is plotted, which reflects the market's current state of volatility. As the Bollinger Bands expand, the BB-Width indicator line begins to trend to the upside, as quiet (non-volatile) markets that force the Bollinger Bands to contract, would also send this indicator line back to the downside.

As we know that market breakouts typically occur when market volatility increases, as we can see in the past, during periods of market volatility, the CADJPY continued to trend to the upside. However recently as the volatility once again increased, the market this time broke down below its up trending support line, and continued to the downside.

When the market provides us with two independent trading signals, our chances of success increase in our favor; which recently can be see as the CADJPY appears to have begun a new trend to the downside.
Best of luck in all your trades!!!

moving average tunnels

- 1H (of 30MIN, but you will get more whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine
the start of a rend and the end of a trend.
Long term

The 5 WMA & 12 WMA will show you when to enter a trend, they will also
help you to see the strength of the trends. Short term

Entry Signals
You should only open a position, when the red tunnel is extremely narrow or crossed !

LONG: 5 WMA & 12 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 12 WMA upwards, then the signal is extra strong.
RSI >50

SHORT: 5 WMA & 12 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 12 WMA downwards, then the signal is extra strong.
RSI<50

Exit Signals

Signals that show the end of the chosen trend
- Long: The price has reached a top and 5 WMA dives under 12 WMA
Close position

- Short: The price has reached a bottom and 5 WMA jumps above 12 WMA
Close position

Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one! This is a clear sign of a trend reversal.
After you see this, close your position and open a new position in the other way
(If you were long, close, open a short position)

When in a trade and the 5 WMA & 12 WMA cross the red tunnel ->
Pay attention! As long as the red tunnel boundaries doesn't cross
eachother there is no problem, but often this is a sign that they will!"

5 x 5 Simple system

Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method. Trading strategies like this can only be discovered through a long and determined observation of the price behavior.

To start:
Currency: ANY
Time frame: 1 day
Indicators: 5 SMA, RSI 5

Entry rules: Buy when the price crosses over 5 SMA and makes + 10 pips up, the RSI must be over 50. Sell when the price crosses below the 5 SMA and makes +10 pips down, the RSI must be less than 50.
Exit rules: not set.

It is a very very simple system, yet with quite impressive results.
Always remember to take actions/enter the trade only after the signaling candle is closed.

This Strategy or trading idea can be used to create more advanced trading version.

Simple Breakouts system

The idea behind this simple Forex trading system is to capture an early move of the price when it starts to establish its new direction/trend for the day.

As we know the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European session is the first major session for each coming day.

So, what do we do?
We start with 1 hour time frame, preferred pair - GBP/USD and no indicators.
The price range we are going to focus on is from 1:00 am EST to 2:00 am EST.
We look for the highest high and the lowest low of the price in that range and simply draw parallel horizontal lines through those extremes that will create a tunnel.

Now we are ready to move to a smaller time frame - 5 minute chart - and watch for the whole 5 min candle to close outside the tunnel which will provide a signal for us to enter with the open of the next candle.

We use a 20 pip stop OR the other side of the tunnel - whichever is less.

We are aiming at at least 20 pips profit. After that we have several options: lock the profit in, start "chasing" the price with a trailing stop by placing the stop just below the lowest low of the previous 5 min candle, or simply exit within the three consecutive hourly candles from the moment the trading order was filled.

TrendTriggerMod

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) < 50
and TrendTriggerMod downward

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"