There are many trading strategies that you can try right on this website. Technical analysis is a complex subject because there are ema 14 forex many thing that you can learn. Forex trading strategy keeps it simple by not including too many moving parts. Go to price and let that decide your course of action.
Scalping is not something I would do with technical indicators but you can test this strategy and see if it works for you. If you are looking for a Forex scalping strategy, you can search this website for one. Technical Indicators Used For This Strategy We want to keep things as simple as we can when trading and that includes limiting the amount of technical indicators we are using. You can use other technical indicators such as the MACD or Stochastic Oscillator but that is assuming you understand how to use them. We are looking for two things to show up when looking at a buy signal. To refine your trade entry, you can use a candlestick pattern, break of short-term resistance, or some other trigger that shows the market has the potential to move in your direction.
Sell Signals Are Opposite Of Buy Signals You want to see two things occur in order to short the market. This chart highlights the trades that took place on this chart. You can see at a glance whether or not you have a signal or setup occuring. There is no need for trend lines, multiple time frame analysis, or any other trading indicators.
The yellow highlighted area brings up an interesting thing. Sometimes you will have the moving averages cross but the RSI is lagging. You MUST wait until the RSI crosses the 50 level. It is a simple thing but remember, simple is not always easy. Wait until all the variables line up to take your trade. Stop Loss Areas There are multiple ways to place your stop loss.
That does not take into account any aspect of price movement. You can use an ATR stop loss which is usually 2 X the Average True Range of price. Take Profits Using what gets you in the trade to get you out is not a bad play. If you are short and you either lose the cross or the 50 level, exit your trade.