New to Forex…Still grasping for that amazing trading system to make you loads of money…well, your are in the wrong place.
But if you are new, and are looking for a decient way to “get a grasp” on market flow, I have two things for you.
First is a simple idea that is very common;
K.I.S.S !!!
Keep It Simple Stupid.
One of the best things you can tell yourself when Trading.
You don’t NEED five computer screens.
you don’t NEED to plan on making $X.XX per month/week/day/trade
you don’t NEED to use 50 indicators.
you don’t NEED to trade 5 pairs to make any money.
Keep it simple at first, let yourself develop, dont push it.
The second thing, is a simpe trading style to allow you to develop a grip of market activity. THIS IS NOT A SURE-FIRE WAY TO MAKE PROFIT, IF IT WAS IT WOULD BE IN THE HOLY-GRAIL AREA this is a way to help you gain an understanding of how the market acts around variable average numbers.
To do this, simply apply 6 moving averages to any chart.
200 EMA High
200 EMA Low
100 EMA High
100 EMA Low
50 Ema High
50 Ema Low
Doing this will creates 3 channels…now, zoom out your chart a bit, look at different time frames watch how price reacts to these channels.
If you want to trade w/ this, its simple too;
Buy: price moves from the Low line, to the High line. Open your trade, s/l is the low line, t/p is the difference of the low line and the high line x2.
200 EMA Low = 1.5000
200 EMA High= 1.5050
enter at 1.5050, s/l = 1.5000 , t/p = 1.5150
Ratio 2:1
Sell: is opposite the buy rules.
This post is in response to a few questions on how to start getting a grip of the market with very basic indicators
Happy Hunting 