Basic Trading Strategies For Novice Traders

Trading Systems Free Forex Trading Systems
1

In this thread KoolPay will be posting the most basic and common trading strategies that help novice traders make right decisions while taking first steps in forex trading. If your knowledge is not up to par and you don’t want to drain your funds down please, take a few minutes and look over the basic strategies that might generate steady pips in your account

We’re starting with the classical example on the 4H time interval graph (GBPUSD).

Time Frame: H4 EMA8 EMA55
Momentum (12) ADX(14) MACD(12,26,9)

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Trading Tips

SHORT POSITION – SELL

If EMA8 crosses below EMA 55 and tends down, then ADX has to approve our signal at 1.63225 (approximate figure)
• ADX > 20 (for some traders 25)

• ADX to be heading up

• DI- > DI + (red dotted line over green dotted line)

• DI- >20 (to be heading up)

When momentum crosses 100 and descends, this supports our sell signal as well. MACD follows the same path (below 0).

LONG POSITION – BUY

If EMA8 crosses above EMA 55 and heads up, then ADX has to approve our signal at

• ADX > 20 (for some traders 25)

• ADX to be heading up

• DI+ > DI – (greed dotted line over red dotted line)

• DI+ >20 (to be heading up)

When momentum crosses 100 and advances, this supports our buy signal as well. MACD follows the same path (above 0)

2

thanks for sharing.
may i ask how to set stoploss and profit target?

3

How long been trading this what is your profits on this system?

4

Cheers mate. We prefer 1/4 risk to profit ratio to minimize losses and maximize profits.

5

We’ve been trading for quite some time but the above system is just to give you a hint on what you should analyze while trading currencies. We could come up with far better stuff for rookies.