FOREX TRADING EDGE
*If you want to trade Forex for a lifetime, you need a trading edge (like the banks or casino's, which in big picture win always). This chart shows what my trading edge is on a 15-minute chart. It is as follows:
1) Only trade from 10 p.m. to 10 a.m. EST/California time ( you would need to adjust this to your times)
2) On 15 minute chart, from open of new session, put horizontal lines every 4 hour period ( 6 segments in a one day period.)
3) I only trade Forex during 3rd, 4th and 5th periods daily ( can be for a couple of hours daily or few hours daily).
4) I only trade during this time related to higher volume, which is FUEL for forex to move and make profits. (Without volume you have no trends).
5) Look for periods of consolidation and breakouts of those areas.
6) Look for noted EMA'S, which are 10, 20, 50 and 200 to be under price action for bull/buys and over price action for bear/sell trading.
7) If you are either a scalper or day trader, do not be greedy. (you can get 30 to 50 pips per trade, without much risk).
8) I use a 15 pip stop loss on all trades and expect all of the trades to have a minimum of 1:3 (risk/reward) or higher. Only do two to three trades daily.
9) I follow the hourly and daily charts for major trends and support areas. (trade with trend most of the time, (note) Turn around Tuesday's can happen.
10) I use Fib. Ret levels (50.0% to 61.8%)on hourly and daily to set up entries and exits on 15-minute timeframes.
Note on chart two possible trades: 1st one was a bear 60 pip trade early and later a bull 70 pip trade. (if you get 50% or 80% profits, still a great day).
The 12 hours I do not trade are from 10 a.m. to 10 p.m. Good luck, remember leverage, margin and money management on all trades.
*If you want to trade Forex for a lifetime, you need a trading edge (like the banks or casino's, which in big picture win always). This chart shows what my trading edge is on a 15-minute chart. It is as follows:
1) Only trade from 10 p.m. to 10 a.m. EST/California time ( you would need to adjust this to your times)
2) On 15 minute chart, from open of new session, put horizontal lines every 4 hour period ( 6 segments in a one day period.)
3) I only trade Forex during 3rd, 4th and 5th periods daily ( can be for a couple of hours daily or few hours daily).
4) I only trade during this time related to higher volume, which is FUEL for forex to move and make profits. (Without volume you have no trends).
5) Look for periods of consolidation and breakouts of those areas.
6) Look for noted EMA'S, which are 10, 20, 50 and 200 to be under price action for bull/buys and over price action for bear/sell trading.
7) If you are either a scalper or day trader, do not be greedy. (you can get 30 to 50 pips per trade, without much risk).
8) I use a 15 pip stop loss on all trades and expect all of the trades to have a minimum of 1:3 (risk/reward) or higher. Only do two to three trades daily.
9) I follow the hourly and daily charts for major trends and support areas. (trade with trend most of the time, (note) Turn around Tuesday's can happen.
10) I use Fib. Ret levels (50.0% to 61.8%)on hourly and daily to set up entries and exits on 15-minute timeframes.
Note on chart two possible trades: 1st one was a bear 60 pip trade early and later a bull 70 pip trade. (if you get 50% or 80% profits, still a great day).
The 12 hours I do not trade are from 10 a.m. to 10 p.m. Good luck, remember leverage, margin and money management on all trades.