FX5 forex trading strategy is a simple and effective trend following method for any major exchange rate. I hope you can adapt this strategy to suit your trading style.
An intra day forex trend following trading method.
- 10 period WMA (Weighted Moving Average)
- 20 period SMA (Simple Moving Average)
- Slow Stochastic (10,6,6)
- RSI (28)
- MACD (24/52/18)
EUR/USD Buy Trade Example
Forex Trading Rules:
- Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.
- BUY the exchange rate when the 10 WMA crosses up past the 20 SMA and the Stochastic is signaling up (fast line above the slow line), RSI > 50 and the MACD histogram >0 and MACD averages crossed up.
- SELL the exchange rate when the 10 WMA crosses down past the 20 SMA and the Stochastic is signaling down (fast line below slow line), RSI<50 and the MACD histogram <0 and MACD averages crossed down.
- Try and take profits at or near key levels: Try and take profits at exchange rates ending with 00, 20, 50, 80 e.g. EUR/USD 1.1980
- Stop-Loss Level: discretionary or below/above most recent level of support/resistance.