up trend

Effective Forex Trend Strategy

In this post, I am going to share with you the setup for the forex trend strategy that I like to use. Basically I will recommend all new traders to use the trend strategy as it is easier to make money with the trend than against the trend. If you have been reading up on […]

Be Sociable, Share!

    In this post, I am going to share with you the setup for the forex trend strategy that I like to use. Basically I will recommend all new traders to use the trend strategy as it is easier to make money with the trend than against the trend.

    If you have been reading up on forex, you must have heard of the phrase “The Trend is your friend”.

    In order to trade the forex trend strategy, you must first know how to identify the trend of the market. So let me spend some time to show you how I identify the trend.

    video tutorial

    Indicator Required: 200 Exponential Moving Average

    When you see the 200 EMA sloping with great gradient, it is a sign of strong trend.

    When it is sloping upward with good gradient, it is a sign of strong uptrend.

    up trend

    When it is sloping downward with good gradient, it is a sign of strong downtrend.

    Down trend

    When using the trend strategy, you should avoid trading when you see the below 200 EMA.

    No Trend

    Now that you know how to identify the trend of the market, it is time for us to go through the setup of this strategy.

    Additional Indicator Required: Bollinger Bands

    What we are going to do here is to make use of the upper and lower bands of this indicator. If you take a look at the bollinger bands, you will find that the price are usually repelled by the upper and lower bands of this indicator.

    In fact, the upper band serves as a resistance level while the lower band serves as a support level.

    Trade Setup

    When you are in a strong up trend, you will enter a LONG trade when the price hits the lower band of the Bollinger Bands.

    Example 1

    When you are in a strong down trend, you will enter a SHORT trade when the price hits the upper band of the Bollinger Bands.

    So try this strategy out on a demo account to see if you are able to execute it profitably.

    For those of you who has yet to have a reliable strategy that can make you consistent income, you can take a look at these 6 strategies that I am personally using everyday in my trading

    ForexMasteryBanners

    To give you a better understanding of this strategy, I have recorded a video tutorial for you

    Be Sociable, Share!