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Trading-strategy

Volatility BreakoutBollinger Bands indicator is very interesting technical tool and perfectly shows volatility changes of financial instruments. Usually, when we have range market conditions, low volatility and price movement in a narrow channel give us a good trading opportunity. Periods of low volatility are followed by periods of high volatility. Bollinger Bands form the border of this range and provide possible levels for opening trades. When price breaks the boundaries of the range, we could see good movement and often the beginning of a new trend. We have to wait for volatility breakout everytime, when Bollinger Bands become narrow. Once a candle closes outside Bollinger Bands and the lines start to diverge, we get a signal for opening trades. But note, we must have confirmation from ADX and MACD indicators for this breakout. Only after that we place a pending order above the high of the signal candle for long trades and below the low for short trades. The signal candle is the candle where we meet the following conditions: the candle closes outside the range formed by Bollinger Bands, the lines of indicator diverges, ADX rises and MACD confirms the direction of the trade. We have an upcoming stop loss and profit target, which could be 2 or 3 times more then the size of stop loss. That allows us to pass easily a series of losing trades. Also note that the closer the bands - the higher price can go after the break. The growth of the ADX is necessary to enter the market. It indicates that the impulse grows and filters out false breakouts.
FX:JPN225
by DLavrov
Range Market ConditionsTrend-following strategies produce good profit, when markets fall or rise. But when we face with range market conditions, such trading strategies give a lot of false signals for opening deals. What should we do? The answer is simple - we must have rules for range markets. Sometimes it's not easy, and trading in range need more knowledge, experience and deep analysis than trading in the direction of the main trend. But we should use such market conditions and make profit. First of all we have to identify, when we have range market conditions. We have range market conditions, when: - 3 Moving Averages with periods 20, 50 and 100 don't move in one direction. They are close to each other and intertwine - ADX is below level 20 or 25. When we meet such conditions, we have range market. We must not trade based on reversal signals from Moving Averages. For range markets we look for reversal signals only from Bollinger Bands. RSI and MACD must confirm price reversal. We focus on price action near Bollinger Bands and it's better to have strong support or resistance levels which could stop price. We should look at higher time frame and get confirmation that market is in range also or just bulls or bears have no power for moving price against our potential trade. If we open trade based on range rules, but on higher time frame we have trend market conditions, we have good chances to close such trade with loss. Also note, if we trade in trend market conditions, we can have good Risk/Reward ration, in range our profit targets are close and for making profit we’ll need more profit trades. That’s why we need more confirmation for opening trades. So, let's look at the rules of trading strategy for range market conditions.
by DLavrov
7
Trend Market ConditionsThe most simple and profitable signals are usually come from trend markets. My trading strategy gives signals for such market conditions and they are based on the classic principles of the trend-following trading. We open trades in the same direction as the main price movement, immediately after completion of correction. For opening trades we must have a bounce from trend lines and confirmation from other indicators that price reversed. Usually in such trades, we can have a good Risk/Reward ration like 1:2 or 1:3, and even get a lot of false signals, we could be in good profit. As you know, any market at any given time can be in one of two conditions - trend or range. And we need to have criteria that give a clear answer, what kind of trading conditions we have and what type of signals can be used for opening trades. And the main indicator that can identify trend market conditions is Moving Averages (MA). We consider that the trend is up, when the MA with period 20 is above MA with period 50, and they both are above MA with period 100. MAs should rise in the same direction and have distance from each other. It’s standart rule of using MAs to determine the trend. We also consider that we have down trend, when MAs are arranged in such order MA100, MA50 and MA20. When the MAs are intertwined and have different direction, we have range market conditions. In this case, we must not use reversal signals from MAs. There are also cases, when it is possible to open trades based on trend signals, having only 2 MAs which move in the same direction. These cases can be in the beggining of new trend and deep corrections.
by DLavrov
6
EURUSD to test the levels below 1.1140 this week"World-Signals.com trading strategy for the week is to open short positions using good tops for bigger profits." This was the trading strategy by the last business week. Few weeks early we predicted that the upward trend of EURUSD will finish. The dollar will recovery in the next few weeks as may test the levels below 1.10 soon. This week focus over the coming events: On Monday New Home Sales at 14:00 GMT, on Tuesday Durable Orders at 13:30 and Consumer Confidence at 15:00 GMT. These reports may support the dollar with positive data for United States. The most important event is on Wednesday FOMC Rate Decision at 18:00 GMT as is expecting to leave the interest rates unchanged at 0.50% but the time for new interest rates hike is short. The next most important event is GDP-Adv. on Thursday at 13:30 GMT. In Europe the first important event is on Monday Germany IFO reports at 8:00 GMT and Gfk Consumer Confidence Survey on Wednesday at 6:00 GMT. The most important events are on Thursday at 7:55 GMT Germany Unemployment Rate and Euro Zone Consumer Confidence, Services Sentiment, Industrial Confidence, Business Climate, Economic Sentiment Indicator at 9:00 GMT. Also focus over Thursday Germany CPI at 12:00 GMT and Friday Euro Zone Unemployment Rate and CPI at 9:00 GMT. The technical analysis shows the first support at 1.1143 and resistance at 1.1280. World-Signals.com trading strategy is to keep short positions with target 1.1143 and next target at 1.1070.
Short
by World-Signals
1
EURUSD changes the upward movement with downward correctionIn the coming business week according to World-Signals.com there are not important U.S. events except in the housing sector on Tuesday and Wednesday. In the Euro Zone the first important event is on Tuesday 9:00 GMT for Germany - ZEW Survey. On 6:00 GMT on Wednesday focus over Germany PPI. The most important events for the week are on Thursday at 11:45 GMT ECB Interest Rate Decision and ECB Monetary policy statement and press conference at 12:30 GMT. In the last day of the business week the key events are from Germany, Markit PMI Composite, Markit Services PMI, Markit Manufacturing PMI at 7:30 GMT and IFO data at 8:00 GMT. Last week EURUSD breaks below a key support at 1.1320 and cut the strong upward trend that continue since the beginning of March. The key support is at 1.1143 while the resistance is at 1.1460. World-Signals.com trading strategy for the week is to open short positions using good tops for bigger profits. The investors will focus over ECB Interest rates politic and the pressconference on Thursday.
Short
by World-Signals
EURUSD - trading strategy at the levels above 1.1320The economic and interest rates politic as a major factor for the markets this week is expecting by World-Signals.com. There are couples of events that will send signals for the situation in USA and Euro Zone. The first key event for the week is on Tuesday Germany CPI at 6:00 GMT. On Wednesday is the very important Fed's Beige Book at 18:00 GMT also at the same day at 12:30 GMT expects PPI, Core PPI and Retail Sales. On Thursday focus in the morning Euro Zone CPI at 9:00 GMT and U.S. CPI and Core CPI at 12:30 GMT. In the last business day of the week pay attention over China's GDP for first quarter at 2:00 GMT. China's report is a signal for the total economic growth. Later expects Euro Zone Trade Balance at 9:00 GMT and Industrial Production for United States at 13:15 GMT. The technical analysis shows two important support levels at 1.1320 and 1.1345. If EURUSD breaks below 1.1320 World-Signals.com predict the end of the uptrend. Otherwise use the levels between 1.1320 and 1.1345 to open long positions with target 1.1495. The major resistance levels are 1.1453 and 1.1495.
Long
by World-Signals
A 90% Winning Strategy - Simple but effectiveGuys ! we all know about Renko Charts, you can use this strategy which is really basic, simple but very very effective. For making good profit it's not that you need loaded Indicators and systems, sometimes a very basic system turns to be effective. Here i am discussing a system which always works. Clear entry and exit rules, you can use this system for scalping on 5 minutes to 15 Minutes charts as well but i suggest go with 1Hr chart for maximum profit. Requirements 1) Renko Chart 2) 20 Period Moving average - Simple or Expo no matter. 3) MACD with standard settings. Now let's see when we have to take Long or Short entry: Long Entry Rule: Renko Chart create a Blue Candle Which is crossing above 20 period Moving Average then take Long on closing of candle. - EMA shape points upwards and MACD crossing up for Long entry. Exit rule is Simple, as Renko chart form first Red candle exit trade on closing of candle. Short Entry Rule: Renko Chart create a Red Candle Which is crossing Below 20 period Moving Average then take Short on closing of candle. - EMA shape points Downside and MACD crossing down for Short entry. Exit rule is Simple, as Renko chart form first Blue candle exit trade on closing of candle.
by DsForexPro
116
EURUSD changed the trend into upward-trading strategy this weekThe markets were surprises in the last week with European Central Bank (ECB) decision to cut the main Refi rate with 5 basis points to 0.00%. The deposit rate cut with 10 basis points to -0.40%. In a moment when United States raises the interest rates with 25 basis points to 0.50% ECB reaction was a shock for the investors. The Euro gains over 200 pips in spite the rising divergence between USA and Europe interest rates politic. Additional ECB raise the monthly asset purchase program to EUR 80 billion from 60 billion. The market accepts these steps as support for the Euro Zone growth and the investors prefer to buy Euro. There are few economic events that will send new signals for the situation in the Euro Zone like Monday's Industrial Production at 10:00 GMT, CPI and Trade Balance of Euro Zone on Thursday at 10:00 GMT and the most important event for the week is Non-monetary policy's ECB meeting on Wednesday at 8:00 GMT. On the other side of the Atlantic the key events that World-Signals.com recommends to focus your attention are Retail Sales and PPI on Tuesday at 12:30 GMT. On Wednesday there are several important events at 12:30 GMT like CPI, Housing Starts, Building Permits, Industrial Production at 13:15 GMT and Fed Interest Rate Decision at 18:00 GMT with the press conference at 18:30 GMT. The technical analysis shows that the key support is formed at 1.0820 followed by 1.1080 as the resistance is at 1.1220 and 1.1375. World-Signals.com trading strategy this week is to open long positions using the first support at 1.1080.
Long
by World-Signals
RIGHT WAY TO TRADE NEWS (1m chart)to see what I'm talking about please change a tf to a 1 minute chart. 1. NEVER TRADE A BREAKOUT WITH ECN. 2. WAIT FOR AN IMPULSE CANDLE 3.NO MATTER HOW FAR THE MARKET WILL GO - REMEMBER, WHILE WORRYING ABOUT HOW MUCH YOU DIDN'T MADE - YOU'RE NOT WORRYING ABOUT HOW MUCH YOU'VE LOST!!! 4. WAIT FOR A SHORT TERM CORRECTION, USUALLY 3-5 MINUTES - enter after the 3rd - 4th minute close. 5. ENTER ON A CANDLE WITH A SHORT BODY OR INSIDE/OUTSIDE BAR. 6. TARGET IS A NEWLY FORMED EXTREME 7. STOP LOSS IS ABOVE THE ENTRY EXTREME IF YOU LOSE SUCH A TRADE - YOU WILL ALWAYS LOSE LESS THEN A SLIPPAGE... study this phenomenon on the history and ask me anything. Sincerely
by Marenno
5