At the start of each trading session, you will receive an email with the author's new posts. The simple truth is. Moving average indicators are standard within all trading platforms, the indicators can be set to the criteria that you prefer.

For this simple day trading strategy we need three moving average lines, One set at 20 periods, the next set at 60 periods and the last set at periods. The 20 period line is our fast moving average, the 60 period is our slow moving average and the period line is the trend indicator. How do I trade with it? This day trading strategy generates a BUY signal when the fast moving average or MA crosses up over the slower moving average.

And a SELL signal is generated when the fast moving average crosses below the slow MA. So you open a position when the MA lines cross in a one direction and you close the position when they cross back the opposite way. How do you know if the price is beginning to trend? Well, If the price bars stay consistently above or below the period line then you know a strong price trend is in force and the trade should be left to run.

The settings above can be altered to shorter periods but it will generate more false signals and may be more of a hindrance than a help. The settings I suggested will generate signals that will allow you to follow a trend if one begins without short price fluctuations violating the signal.

On the chart above I have circled in green four separate signals that this moving average crossover system has generated on the EURUSD daily chart over the last six months. On each of those occasions the system made , , and points respectively.

I have also shown in red where this trading technique has generated false signals, these periods where price is ranging rather than trending are when a signal will most likely turn out to be false.

The first false signal in the above example broke even, the next example lost 35 points. The above chart shows the first positive signal in detail, the fast MA crossed quickly down over the slow MA and the trend MA, generating the signal. Notice how the price moved quickly away from the trend MA and stayed below it signifying a strong trend.

The second false signal is shown above in detail, the signal was generated when the fast MA moved above the slow MA, only to reverse quickly and signal to close the position. We can immediately see how much more controlled and decisive trading becomes when a trading technique is used.

'The Holy Grail of Forex Trading Strategies' - Daily Chart Timeframes » Learn To Trade

There are no wild emotional rationalizations, every trade is based on a calculated reason. Heikin-Ashi chart looks like the candlestick chart but the method of calculation and plotting of the candles on the Heikin-Ashi chart is different from the candlestick chart. In candlestick charts, each candlestick shows four different numbers: Open, Close, High and Low price.

Heikin-Ashi candles are different and each candle is calculated and plotted using some information from the previous candle: Heikin-Ashi candle is the average of open, close, high and low price. Heikin-Ashi candle is the average of the open and close of the previous candle. Heikin-Ashi candles are related to each other because the close and open price of each candle should be calculated using the previous candle close and open price and also the high and low price of each candle is affected by the previous candle.

Heikin-Ashi chart is slower than a candlestick chart and its signals are delayed like when we use moving averages on our chart and trade according to them. This could be an advantage in many cases of volatile price action. This day trading strategy is very popular among traders for that particular reason.

You can access Heikin-Ashi indicator on every charting tool these days. Lets see how a Heikin-Ashi chart looks like:. On the chart above; bullish candles are marked in green and bearish candles are marked in red. The very simple strategy using Heikin-Ashi proven to be very powerful in back test and live trading. The strategy combines Heikin-Ashi reversal pattern with one of the popular momentum indicators. My favourite would be a simple Stochastic Oscillator with settings 14,7,3.

The reversal pattern is valid if two of the candles bearish or bullish are fully completed on daily charts as per GBPJPY screenshot below.

Once the price prints two red consecutive candles after a series of green candles, the uptrend is exhausted and the reversal is likely.

SHORT positions should be considered. If the price prints two consecutive green candles, after a series of red candles, the downtrend is exhausted and the reversal is likely. LONG positions should be considered. The raw candle formation is not enough to make this day trading strategy valuable. Trader needs other filters to weed out false signals and improve the performance. To learn more on how to use this indicator, visit Stochastic Oscillator. Enter long trade after two consecutive RED candles are completed and the Stochastic is above 70 mark Enter short trade after two consecutive GREEN candles are completed and the Stochastic is below 30 mark.

STOP ORDER FILTER To further improve the performance of this awesome day trading strategy,other filers might be used. I would recommend to place stop orders once the setup is in place. In the long setup showed in the chart below, the trader would place a long stop order few pips above the high o the second Heinkin-Ashi reversal candle. The same would apply to short setups, trader would place a sell stop order few pips below the low of the second reversal candle.

To start I needs to assume that you know what is the support and Resistance in Forex trading. If not see few simple definitions and examples below. Support and Resistance are psychological levels which price has difficulties to break. Many reversals of trend will occur on these levels. The harder for price to cross a certain level, the stronger it is and the profitability of our trades will increase.

The most basic form of Support and Resistance is horizontal. Many traders watch those levels on every day basis and many orders are often accumulated around support or resistance areas. It important to mention, support and resistance is NOT an exact price but rather a ZONE. Many novice traders treat the support and resistance as an exact price, which they are not. Trader must think of support and resistance as a ZONE or AREA. These levels are probably the most important concepts in technical analysis.

They are a core of most professional day trading strategies out there. Role Reversal is a simple and powerful idea of support becoming a resistance in the downtrend and the resistance becoming a support in the uptrend.

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Let see how this plays out in the uptrend. Once the price is making higher highs and higher lows we call it uptrend. Technical trader must assume the price is going to go up forever and only long trades should be considered. As per definition of an uptrend, the price punching through the resistance and pullback before it makes another higher high. Once the resistance is broken to the upside, it becomes a new support level.

After making a new higher high, the price in uptrend must correct. It is likely to correct to the new support level. This can present an excellent buying opportunity for bulls. Risk management must be applied. Trader must remember to treat support and resistance levels as ZONES rather than exact price.

If the market is in downtrend, the price will punch through supports making new lower lows. The broken support becomes new resistance and offers opportunity for short positions.

A trader could use other filters to gauge the pullback. Fibonacci retracements are often used by professional traders to measure how deep the price corrects. A trader can also establish few levels of support or resistance to lower the risk and increase the gain. Day trading, and trading in general is not a past-time!

Trading is not something that you dip your toes into now and again. Day trading is hard work, time consuming and frustrating at the best of times! BUT, by recognizing the difficulty and learning some basic trading strategies you can avoid the pitfalls that most new traders fall into! The honest truth of the matter is this, most new traders get involved because they see huge profits straight ahead by simply clicking BUY.

Believing they will wake up the next morning a newly minted millionaire! What actually happens goes more like this. Your friend has just opened a trading account, he claims to have made a hundred dollars in ten minutes, he just sold the EURUSD because the U.

S economy is so great right now, it said so on TV! You wake up the next day and the market has moved against you by points, and your account is wiped out!

Lets look at the facts. There are three main reasons behind the high failure rate of new traders, and you can avoid them easily! As in the story I told above, trading based on hearsay or some popular narrative will lead you to almost certain doom!

The value of using a tried and tested trading technique is immense, and will save you from loosing your hard earned savings. By using a day trading strategy, you remove the emotional element from the trading decision.

A trading strategy requires a number of elements to be in place before trading. So, when those elements are in place, you place the trade. It is a binary decision rather than an emotional decision.

All other actions are off the table, by following a trading technique you avoid the cardinal sin of trading, that is, over trading. So often new traders place a trade without even placing a stop loss position! An error which can lead to catastrophic losses. And never risk more than th or as close to of your capital per point. Here are some other good resources. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement.

Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

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SECTIONS Forex Brokers Broker News Broker Spreads. TOOLS Live Chart Rates Table Trading Positions Forecast Poll. Close alert Thanks for following this author! Close alert You've unfollowed this author. You won't receive any more email notifications from this author. They identify day trading strategies that are tried, tested. They stick to a strict money management regime.

The main chart patterns associated with these day trading strategies. Instructions for implementing the strategies. The Moving average crossover strategy. The swing day trading strategy. Then I will tell you, How to manage your trading risk to stay in the game for the long haul. So lets get down to business! Heikin-Ashi Trading Strategy What is it? Lets see how a Heikin-Ashi chart looks like: SHORT SETUP Once the price prints two red consecutive candles after a series of green candles, the uptrend is exhausted and the reversal is likely.

LONG SETUP If the price prints two consecutive green candles, after a series of red candles, the downtrend is exhausted and the reversal is likely. FILTERS The raw candle formation is not enough to make this day trading strategy valuable. MOMENTUM FILTER Stochastic Oscillator 14,7,3 We recommend to use a simple Stochastic Oscillator with settings 14,7,3. Support and Resistance - Role Reversal Trading Strategy To start I needs to assume that you know what is the support and Resistance in Forex trading.

The same principle applies to downtrends. I expanded this article for another five strategies. Using untested, or using no trading strategyat all. Lacking in trading discipline. Bad or non existent money management rules.

Please let me know, which day trading strategy is your favourite in the comment section below. I will expand of the most popular ones. Filter by topic or author in Analysis Results.