Simple intraday System - forex trading hours christmas 2014

Simple intraday System ~ forex trading hours christmas 2014

Simple intraday trading is an intraday trading system trend momentum based on exponential moving aerages. MACD and Awesome.

An Overview

So I?ll first give a quick run-down of the system and a few details before we get going.

Pairs

Make trading easier for yourself and stick to the most liquid andpopular pairs – they move more and have a lower spread – so your chances of profit are even higher.

Basically, trade anything that is made up of two of the following currency list: USD, EUR, GBP, JPY, CHF, NZD, AUD.

Timeframes

The system is mainly traded on the 5-minute, 15-minute and 30- minute timeframes.

But that?s just a personal preference – the system works on all timeframes.

You can trade other timeframes if you like (I have done this) – the above timeframes are just a preference remember.

When To Trade

Stick to the most popular trading times – that?s the London session

(around 06:00GMT to around 16:00GMT) and the US session

(around 13:00GMT to around 21:00GMT).

Of course you can trade outside these times – but again, keep the odds in your favour and stick to these – it will help your trading account!

Charts & Indicators

The system uses two indicators for both entry and exit.

The indicators are:

- „MACD? – which is available on almost all trading/charting platforms.

- „Awesome Oscillator? – also available on most platforms.

Chart Setup

you will need the following indicators and settings:

1) 176-Period Exponential Moving Average of Close Price

(blue)

2) 144-Period Exponential Moving Average of Close Price

(orange)

3) 44-Period Exponential Moving Average of Close Price

(blue)

4) 36-Period Exponential Moving Average of Close Price

(orange)

5) Awesome Oscillator (there are no settings to change on this

– apart from the colours).

6) MACD – Using the following settings:(3, 7, 1),

Your charts should look something like this if it?s all setup correctly:

Knowing The Moving Averages

We use the moving averages as a guide to direction and trend-

strength .

- When the 144 is above the 176 then the “overall trend” is up and we only look to take buy trades (and sell trades when the 144 is below the 176).

- When the 36 is above the 44 then the “immediate trend” is up and we only look to take buy trades (and sell trades when the 36 is below the 44).

Before we take a buy trade then the two above criteria must be met – or, to put it simply, the 144 must be above the 176 and the 36 must be above the 44.

Similarly, for a sell trade, the 144 must be below the 176 and the 36 must be below the 44.

Once the above situations occur – we then look for our specific entries.

The Trade

Now that we have the moving averages under control and know what to look for in terms of when to trade and in which direction – it?s time to focus on the other two indicators.

There are a number of ways to use the two indicators – but „V? uses

them in what is quite probably the easiest way I?ve ever seen.

I?ll go through a buy entry...

Step #1 – Make sure our moving averages are lined-up for a buy-

trade:

Step #2 – We then wait for the „Awesome Oscillator? to fall below

the 0.0-line:

Step #3 – The final „trigger? to the entry is when the MACD then

closes above the 0.0-line:

...and that?s us in a trade! However, we do need to place a stoploss on our trade and take profit too – that is now Step #4 and Step #5.

Step #4

Our stoploss placement is fairly simple – it?s not “technical” as with most stoplosses (which is when we “hide” it behind a significant technical level).

Instead we use a rough guide of:

- 10 to 20 pips on a 5-minute chart

- 15 to 30 pips on a 15-minute chart

- 20 to 40 pips on a 30-minute chart

It depends on which pair you?re trading as to how large the stoploss is – you?ll get an idea of the stoploss size after you?ve made a few trades (I promise!).

This is a far more effective way (read: profitable!) than having to use a larger stoploss in the usual technical way.

Here?s the stoploss used on our current trade:

Step #5

Our take-profit is as simple as exiting when the MACD crosses back below the 0.0-line again:

..and that?s us out of the trade!

This was a nice, simple example.

Not every trade is going to be this perfect (obviously!) – but quite a few are!

So that?s basically the system – but I?m not going to leave you there.

We?re now going to go through a number of trades and situations so that you really understand the system.

Trades

Over the remaining pages we?ll go through more examples so that you fully understand the system.

The following trades are all similar (which is why this system is so great!) – but, there are small differences, so they should give you a better idea of what to expect when you start trading it yourself.

News

Sometimes it is obvious that some news, or an economic figure, has hit the market – and an entry signal is produced because of it.

Quite often this entry signal will not be good to take because news (contrary to popular belief) can be quite unpredictable. In the example below, where the time was 13:30GMT when the

entry occurred, the size of the candle shows us that it was a news- induced signal:

In summary to news:

Watch the economic calendar so that you know the market may only be producing a trade entry because of some news or economic data.

Perseverance

The great thing about the moving averages we use is that we know well in advance whether we are going to get a trade – and so don?t waste time sitting and staring at charts for no good reason!

The chart below is the 5-minute GBP/USD - the left-most side of the chart below is around 06:00GMT which is the London session open.

You can see that the moving averages are not in alignment – and that it will take a good few hours until they are. It?s not until around 12:00GMT that we can start looking for trade entries:

We do get an entry – which results in a small losing trade of around 3 or 5 pips:

The market then ranges for a while and the moving averages go out of alignment. However, if we continue watching (and because it is the 5-minute chart) we can get yet another entry within the same day on the same pair:

In summary to perseverance:

If you have the time and opportunity – remember that all is never lost when intraday trading. Often the markets will totally change their dynamic before the end of the day and produce excellent opportunities if you stick to the system!

Testing Exits

You?re a trader, right?

That means you?re inherently independently minded – sure, listen to what someone is teaching you (in other words, me!), but try your own ideas too!

We have the standard exit that we use – but occasionally I will break from this and go for larger runs.

One that I use often is the keep a trade (or at least part of it) running until the end of the trading day – which is usually around

21:00GMT or 22:00GMT.

We can end up with some big days doing this:

In summary to testing exits:

Question everything! Track your results from you trades – sometimes a minor “tweak” here or there (that no one else but YOU can do for your trading) can make a huge impact to your bottom- line and towards your consistent profits!

Bigger Timeframe, Bigger Pips

When you trade the higher timeframes (30-minute and perhaps even 60-minute) you can expect to get larger pip runs.

Trading the 5-minute and 15-minute charts you can pretty much expect to be out within the day.

Here?s a trade on the AUD/USD hourly chart – you can see that our exit (if following our standard MACD crossing back through the 0.0- line method) is not until the next day:

Note that in this trade, had we exited at the end of the trading day, we would have ended up with a similar number of pips.

In summary to bigger timeframe, bigger pips:

Set your mental and psychological targets in-line with the timeframe you are trading. There is no point trading an hourly chart if you can?t handle holding a position overnight!

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Third Candle with Stochastic - forex market hours.com

Third Candle with Stochastic ~ forex market hours.com

Profit: 10 pips per trade. 5-10 trades a day. You can use this strategy anytime you want,

there are always very strong signals ( I will explain below..) The system will work on many

Forex pairs and many major Stocks. The rules to this system are simple, and executing and

managing trades will take no more than five minutes of your time. The only tricky part is

bringing your knowledge base up to speed with the strategy so this becomes a five-minute

process.

Let me introduce you to the four simple steps below. Then I’ll take you through some worked

examples in order to illustrate just how easy this system is.

This trading system involves 3 simple steps.

1. Identify a current trend

2. Identify your entry signal

3. Place your trade

Manage your trade later.

The system  in action 

1. Find the third candle

2. Enter your trade at the start of the third

candle

3. Close your trade in a few minutes with 10

pips profit.

Below I will show you what to do – step by step. The system works fine for me on 5 minutes or

15 minutes charts, but it work on other timeframes as well.

Setup:

-Identify the current trend.

(For example: use 200SMA or 200EMA to identify the current trend. If the price is above the SMA –the current trend is up or opposite)

-Open a 5 min or 15 min and find the “first candle”.“The First Candle” is between two candles, and it is the highest or the lowest of those three candles.

Look at the chart below:

The 1 st candle is located between two candles and it is the highest (or lowest ) of the 3.

-Now if you look to the right of the 1 st candle is the 2 nd candle and the next is the 3 rd candle –

the most important for us. This system based on the 3 rd candle.

If look on your chart you will see a lot of “three candles figures” and all of them are great trading opportunities! Usually each trade will brings you 10 pips profit:

Trades with third candle

We BUYat the very beginning of the 3 rd candle if the current trend is up and your candles

figure is going up We SELL very beginning of the 3 rd candle if the current trend is down and your candles figure is going down.

Take profit

Your target is 10 pips. You can also try to use a trailing stop order to maximize your profit.

Stop loss needs to be placed above or below the second candle: If you BUY – place a stop 1 pip below the 2nd candle, if you SELL – place a stop 1 pip above the 2nd candle.

When not to trade

- do not trade 1 hour before and after major news or big events

- when the 3 rd candle is against the current trend

- when the second candle closes “inside” the 1 st candle:

You may also use a Stochastic indicator with parameters 5.3.3 to filter your trades. If the direction of the stochastic is opposite of your 1 st and 2 nd candles it is better not to trade at that moment and wait for the next “1 st candle figure”.

Third Candle with Stochastic

Indicators:

EMA 50 Time Frame 5- 15 min, EMA 21 TF 30 min and 60.

EMA 200 Time Frame 5- 15 min, EMA 50 TF 30 min and 60.

Stochastic 5,4,4. close.

Time frame 5 min or higher

Buy

Pattern third candle and stochastic oscillator crosses upward,.

Sell

Pattern third candle and stochastic oscillator crosses downward.

You can use this strategy also with binary options high/low.

Expiry time 2-3 candles.

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Fibonacci levels support and resistance - forex trading hours utc

Fibonacci levels support and resistance ~ forex trading hours utc

The Fibonacci sequence describes key ratios from growth in plants, human anatomy, and so on. The forex application is to price movements, which appears to realize Fibonacci ratios. This is particularly obvious on larger time frames such as weekly, daily, and 4-hour time charts. A large move from a low to a high is often followed by an attempt of the price to move back or “retrace” the original move. These areas of rest are Fibonacci points. For example, let’s look at a chart showing a price move on the euro–U.S. dollar (EURUSD) 4H chart chart (see picture1).

We can see that the EURUSD made a low at 1.3525 and then proceeded to forma high at 1.3637. Once this move was completed, the trader can use a Fibonacci (Fib) graphic tool, which is available on all platforms to draw a Fib line. The Fibonacci retracement are:

23.6% the shallowest of the retracements;

38.2% this is the first line of defense of the current trend.;

50% the neutral point of any retracement.;

61.8% retracing to this typically signals a breakdown in the trend;

100% matching the move;

other potential lines are: 138.2% , 161.8%, 200%.

Since the price started from the low, the Fib tool assigns the 100 percent level to this origin point. The best way to interpret this is to think of the price going all the way back home to where it started. It would achieve a 100 percent retracement. Once the low and the high are connected, the Fib graphic tool draws the lines and projects it out. Notice that these Fib lines are extended into the future. The trader doesn’t know if the price will get there! The trader makes the assumption that if the price is able to get to a Fib level, it will experience strong support or resistance. Also, if the price is able to probe a future Fib level but fails to go through it, the trader can make a reliable assumption that there is key support at that level.The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back.

The Fibonacci levels are maps of potential support or resistance. They are areas where great care should be taken by the trader. Rest assured that any professional trader knows where the key Fib levels are. Perhaps because these levels are projected and therefore known in advance, they generate a self-fulfilling process and increase in importance.

The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back

Fibonacci Quiz

1. What are the Fibonacci levels ?

• 0.236%, 38.2%, 50%, 61.8%
• 1.23%, 0.38%, 0.61%, 0.76%
• 50.0%, 12.3%, 63.8%, 92.7%

2. What may represent Fibonacci levels?

• Fibonacci levels are only imaginary points
• Fibonacci leveles are dynamic points
• Fibonacci levels are potential areas support or resistance

3. (Fib) Graphic tool what to do?

• Draws magic lines for fx prediction.
• Draws the ratio of Elliott wave
• Draws the ratio lines and projects it out

4. What are the best time frame where to apply Fibonacci lines?

• All time frame are good
• 4H, daily, weekly, monthly
• 1 min, 1 sec, 5 min, 10 min

Score =

Correct answers:

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5 min Bollinger Bands Intraday System - forex trading times gmt

5 min Bollinger Bands Intraday System ~ forex trading times gmt

On a chart of 5-minute bars for a stock, plot out the 10-bar moving average and the Bollinger bands for 2 standard deviations on either side of the average. Then apply the following system:

Buy when the stock falls 3 percent below its lower band. Hold until at least the end of the 5-minute bar where the stock was bought.

Sell when the stock hits a 1 percent profit target or at the end of the second bar after the stock was bought.

The critical issue is how to keep track of all the stocks one is interested in. Before the open, use charting software such as eSignal or TradeStation, or Wealth-Lab (which is the software I use for all of my testing) to identify the Bollinger band levels for each stock. It is then possible with all of these packages to set up alerts and even interface with direct-access brokers, such as Interactive Brokers or Cybertrader, to actually make the trades automatically.

The key in all of these examples is time. Basically, the market has such an

extreme and quick selloff in order to trigger this system that the stock ei-

ther bounces back immediately or flounders about. If the latter, then we

promptly get out since we are only looking for our profit target within the

ten minutes following the entry bar.

ORCL, 5/20/2002, 10:30 AM

Merrill Lynch, in a post-Blodget fury of tech pessimism, reiterated a broads weeping recommendation the morning of May 20, 2002, to sell technology stocks into any strength. While their prediction proved mildly prophetic for all of two months, anybody short technology at May 2002 levels would have been killed over the following year. Nevertheless, the panic to get out of the popular tech issues, for instance ORCL, was enough to trigger a signal on ORCL at 10:30 AM at 8.73 (1). In a brief flurry of selling, it hit 3 percent below its lower band, which it had been steadily walking down all morning. Buying at the critical level and holding until the open of the next 5-minute bar would have resulted in a quick 3.3 percent profit with the sale at 9.02.

5 min Bollinger Bands System

MSFT, 4/3/2000

Many of examples occur close to the open of the day, which is the time when there is the most volatility and also the most panic. The market has had all night to hear and absorb news, and thus the open is when the most participants at once are acting on that news.

Look at Figure 2. On April 3, 2000, MSFT gapped down and triggered signals for two five-minute bars in a row, at 9:30 AM at the open and 5 minutes later at 9:40 AM . The first signal was sold off at the close of the second bar at 47.69 for a 1 percent profit, and the second signal, which was bought at the open of the second bar at 47.44, was promptly sold at 47.91 for a 1 percent profit.

5 min Bollinger Bands Intraday System

AMAT, 11/12/01

On the morning of November 12, 2001, a plane crashed near Kennedy air port. The crash was not apparently an act of terrorism but nobody knew that at the time. Futures spiked lower and the tech stocks, which were hit hardest during the week after September 11, 2001, suffered a minicrash im-

mediately prior to the open. Being alert and capitalizing on the panic would have enabled one to buy AMAT, which triggered a buy signal at its premarket low at 18.20 when it hit 3 percent lower than its lower Bollinger band (Figure3, . Holding to the close of that 5-minute bar would have enabled one to sell immediately at 19.33 for a 6.15 percent profit.

5 min Bollinger Bands Intraday System

 

5 Min BB System, 2/2/02–6/30/03 results

 

You can apply this system also at the Forex Majors (with 20-30 pips outside the bands).

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5 Min Scalping with Pivot Points Levels - forex market hours oanda

5 Min Scalping with Pivot Points Levels ~ forex market hours oanda

 5 min scalping with Pivot points levels is a trading system based on pivot points, tool, used by traders in all sorts of markets.

Pivot points are support and resistance levels based from the previous periods high, low, and closing values. There are a many of pivot values with which to trade, thay are: monthly, weekly, and daily values. In 5 min scalping with pivot points Ill use daily pivot points for the purpose of

this forex strategy because the focus is day trading. All trading platform have a tool or indicator che draws on the chart the pivots point levels.

As example Ill show you how to calculate pivot values.

Pivots = (H + B + C) / 3
S1 = (2 X Pivot) – H
S2 = Pivot – (H – B)
S3 = B – 2X (H – Pivot)
R1 = (2 X Pivot) – B
R2 = Pivot + (H – B)
R3 = H + 2X (Pivot – B)

Support levels =S1, S2, S3. Resistance levels= R1, R2 and R3 . H=the highest price the day before, B= the lowest price the day before and C= the closing price.

The pivot values are plotted as horizontal levels they are like lines of support and resistance. The pivot point it self can be thought of as the days mid-point. Its where the buyers (bulls) and sellers (bears) meet to determine the days trend in a currency pair. The support and resistance levels that are plotted around the pivot point are just that: potential support and resistance.

The idea: Pivot points are great levels of support and resistance. The moment price comes and touches them it bounces off like a tennis ball.

Usually You can expect: 69-79% winning trades.

Currency Pairs: majors with lowest spreads (EUR/USD GBP/USD GBP/JPY USD/JPY, AUD/USD, NZD/USD, EUR/JPY.

Charts: 5Min

Target: 5-10 pips

A pivot point level is often turning point in the direction of price movement in a trending market. For example: in an up trending directional market, the pivot point and the resistance levels are a ceiling level in price above which the uptrend is no longer sustainable and a reversal may occur;In a down trending market, a pivot point and the support levels may represent a low price level of stability or a resistance to further decline.

Setup:

Determinate current short trend .
For determinate the trend add two mowing averages (21 EMA and 50 EMA and trend line tool)
Trend line pointing up, 21 EMA > 50 EMA trend is up.Trend line pointing down 21 EMA<50 trend is down.

Calculate Daily pivot points or add a indicator pivot point for your favorite currency pair.

Watch your 5 minute chart. Place order in the direction of the the trend.

Buy
Trend line pointing up.
11EMA > 50 EMA, when the price touches pivot point levels and the candle price close above place a buy order.
Sell
Trend line pointing down
11EMA <50 EMA, when the price touches pivot point levels and the price candle price close below place a sell order.
Set stop loss 3 pips + spread on the other side of the pivot line.

Take profit with profit target 5-10 pips.

Trade example.

In first example GBP/USD 04/11/2014 5 min chart market go Sideways do not trades, trend line is weak, not trending direction.For this strategy to find market trends.

The second example AUD/USD the short trend is up. We place only buy order with profit target 5 pips. In this example 4 trades win.

5 Min Scalping with Pivot Points Levels

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Bollinger Bands System - forex market hours gmt mt4 indicator

Bollinger Bands System ~ forex market hours gmt mt4 indicator

The basic idea for using Bollinger bands is that when a stock hits the upper band, it is usually overbought so you should short, and when a stock hits the lower band, it is usually oversold, so you should buy. The rationale is that price tends to revert to its moving average.

Buy when a stock hits the lower band using a 20-day moving average

and 2 standard deviations.

Sell when a stock returns to its moving average.

figure 1 Bollinger Bands System

On July 7, 2001, CHKP (shown in Figure 2) gapped down and proceeded to hit its lower Bollinger Band at 40.45. The system held the position until July 27 at 42.69 for a 5.51 percent profit. (See Table 1 for results.)

Bollinger Bands System results

The basic idea holds up and delivers a fairly consistent return with a high probability. There are several twists that I do on the basic system to improve both the odds of success and the percent return per trade. For one thing, I do not like to wait for the stock to return to its moving average.

Even if a company is in big trouble, even going bankrupt (and see Technique 3 on bankruptcies for an example of what I am about to say), stocks do not move in a straight line. The faster the spike down, the more likely the stock is to do a quick bounce up. However, if the company is truly in trouble, over time the stock will do its little spike up and then drift down, bringing the moving average, and the potential for profit, down with it.

Not only am I interested in if the stock simply touches the Bollinger band, but if it decisively breaks through it, which introduces the concept of “per- cent b.” Percent b (%b) is the percent level the stock price is at relative to its bands. If the stock is dead center between the bands, then the %b = 50.

Bollinger Bands System

If the stock is touching the upper band, then the %b is 100, and if it is below the lower band, then the %b is negative. The following formula is used to calculate %b:

Formula Bollinger Bands %

Which all leads to the following:

Buy when %b is less than –20 using Bollinger Bands on the 10-day moving average with 1.5 standard deviations and hold at least until the close of that day even if profit target is hit.

Sell when either a 15 percent profit target is hit or four days go by, whichever comes first. With this system, we are using the 10-day moving average to get quicker and sharper spikes. We use a –20 %b to make sure it is a decisive break of the bands. And if we don’t get our target within four days, then we are run like hell out of the trade.

Example: SEBL, 8/31/98

August 31, 1998. The markets had been in turmoil all summer, culminating in the Long Term Capital Crisis. Panic had set in and everyone was worried the party was over. After nine down days in a row, during four of which the lower Bollinger Band was broken through, the stock price finally hit our buy target at 4.81 on August 31. The next day it bounced, hitting a 15 percent target at 5.54 (see Figure 3).

Example: BRCD,4/14/2000 April 14, 2000, was not a pleasant day to be long tech stocks. In fact, it seemed like the world might quite possibly end. At the time I was working at 44 Wall Street, and when I left the building that evening pedestrians were jokingly being warned to stay away from the sidewalks just in case people were jumping out of buildings. Nevertheless, despite the pain, it was certainly an important day to be buying short-term moves in stocks. As shown in Figure 4, on that day, BRCD triggered a buy signal at 46.42. It started to make a comeback on Monday the 17th and finally hit the 15 percent profit target on the 18th at 53.38. (See results in Table2.)

Figure 3 Bollinger Bands system

                                                                

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