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Trading Systems Free Forex Trading Systems
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I first visited this site many years ago and looking back now it was the smartest thing I ever did. A big thank you for the people who got me to where I am today with my trading, you know who you all are!!!

The world of forex trading as we all know has evolved so much in the last 10 years, and as traders we all undergo a process to learn how to trade so we can generate some great money consistently. We are all aware that what constitutes success in trading involves a process from a great trading system, risk management, psychology, structure, planning, execution and managing. There are many great trading systems/strategies out there, it’s really up to us to implement them in a way that we find this consistency.

I wanted to take the time to be as blunt as possible and run through what I have found to have helped me the most in my 10 years of experience trading FX. Firstly I would like to run through the trading set ups that I take. I am not here to say the way that I trade is better than anyone else’s way, I just feel obligated to share my system and thoughts because I have been fortunate enough to have come across some great profitable traders that taught me this way…If this has an impact on 1 person than I am more than happy.

This system is based on technical analysis. One of the most important things that I was taught was to train my eye and look at reocurring patterns in the charts. Pull up any currency pair on any timeframe and you will notice that price will act as a magnet to certain previous highs and lows in the market.

This system is based on pure price action and involves using price as a level of support and resistance. Lets focus on what I deem to be support and resistance. I do NOT consider double bottoms/tops as a form of support and resistance (for you conventional traders out there please don’t yell at me lol). What I do consider support and resistance is basically when price makes a new high then comes back and retraces to a previous high, I consider this as Support, when price makes a new low and retraces back to a previous low then this is considered resistence to me.

I have attached a chart of the live market on the EUR/USD, watch the green zones I have highlighted, once price has penetrated a high it retraces back to the green zone for a BUY entry. For a SELL, the red zone comes into play once a low has been broken forming a new low then the price retraces back to the red zone for a valid short.

The old saying comes into play what was once support now acts as resistance, and vice versa. This is the golden rule!!! For me I have found that this way of entering the market is the best form of entry with no or little heat against you in most cases.

Go through the charts and you will be pleasantly surprised how these types of set ups are everywhere, ocurring everyday in any market and on any timeframe.

The hardest part to any trading system is to define the trend, as this is the most important element to trading this system…As the days, weeks and months unfold I will be sharing how to clearly define the direction you want to trade along with specific entry and exits points…Here’s a hint let the market do what it wants to do, we do NOT have any control over this, let it decide then we execute…

Hope this helps

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3 Likes
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Great post, looking forward to more.

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Looks like a very logic and simple system. Hope you can share more with all the newbie out there.

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Note when price approach the red zone which was highlighting previous lows forming a resistance to warrant a short. Only ever take the first re-test of those lows…Applying a tight stop just above the red zone around 28 pips, with target at green zone at around 180 pips, 1 : 6 ratio, however happy with 1:3 ratio at 90 pips.

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OK You have caught my interest! What time frame are you using? What are the indicators. I’m am experienced trader and want to know more!

Thanks,
GJ

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He’s using 4hr time frame and is support and resistance trading. To improve on these setups wait for a clear high or low test ie reversal bar. This will help confirm moves.

Sam.

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Greg, in order to capture the larger moves look at Weekly, Daily and H4 hour significant highs and lows to find the support and resistance zones, at times the size of the zone is created by averaging the difference between the wicks and the bodied candles. It’s imperative to let the market define the direction by breaking out to either direction and creating a new high or a new low, after this occurs wait patiently for a retracement and on the very first re-test back to the previous high or low that was broken enter your position and aim for a new high or low.

I’ll attach the indicators and a full explanation of how to use them in my next few posts as I get into defining the direction to trade in as this is very important.

On a separate note, can I ask you Greg, can you see the charts I posted clearly? As from my end they look a bit blurry.

Hope this helps

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That’s correct TheSharptrader, I do use higher intervals to allocate my support and resistance zone, I actually do prefer to go right off the price level zone instead of wait for a candle pattern.

PS…I’m a she lol

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Sorry hehe,

Ok cool and how long have you used this for and what kind of monthly results have you had. Do you take into account any other factors like indicators?

I’m a pivot and consolidation trader personally, so interested in what others do,

Look forward to your reply.

Sam.

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I’ve been trading this way for the last 7 years in terms of finding an associated entry/exit point like this. I am a major fan of elliot wave analysis to help determine the trend. I have simplified it’s complex nature by applying the basic principles along with the SR levels. Consolidation is very important to the way that I trade as it generally states that it’s in a correction phase when this occurs, so I study these types of phases intensely.

Monthly returns averaging around the 30-40% mark since its inception.

I’ll touch base early next week in more detail, I’ve gone away for the Easter break so I shouldn’t be on the pc as we speak lol…

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Nice work I make 15-20% on 1% risk.

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Have a great Easter Break SR Player! Yes the charts are blurry to me. I look forward to learning more about your approach especially steps in identifying SR levels and then taking advantage of the SR levels for entry and exit.

Thanks,
GJ

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What settings are you using on MACD

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Hi SR player, great post :slight_smile: i hav been trading on a demo account for few months using support n resistance but i still dont make consistent profit on my account thats y im not moving on to a live account :frowning: do u use trend line as resistance as well? N is support n resistance alone enough to look for a setup or do u use other strategy as a confirmation?

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Hi SR. It looks like you have a simple and logical trading system. I’m interested in future posts. :slight_smile:

I’m wondering in how you setup an entry order. Do you use a limit order that is triggered once price enters a red or green zone?

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Interesting thread. Subscribing. :slight_smile:

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Subscribing and ready to learn :slight_smile:

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Here is my first trade with the method as I understand it. Feedback would be appreciated. Thanks GJ

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Looks nice, I prefer large pullbacks, it looks more like a consolidation break but still a nice setup.

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yea, acting like consolidation too. I’m still in trade, I think it will pop one way or the other soon.