A curated collection of 36 practical trading strategies. From high-frequency scalping to long-term swing systems, complete with setup rules and indicators.
This simple system uses 100 EMA and 28 Smoothed Moving Average both on close price. The time frame is 1 hour and 4 hours. It can be used on any currency pair, but EUR/USD would be better. The 100 EMA is used for detecting trend. If we are in a downward trend as shown in 100 EM...
The principle of this strategy is KISS (keep it simple and stupid). And remember trend is your friend. This strategy uses **daily charts** and can be applied to **any currency pair** . The indicator here is SMA. Most times a **30 SMA** is good. Entry/Exit: You basically revers...
Bollinger Band is a great tool to detect resistance and support. In this strategy, a 20 period Bollinger Bands is used as indicator. Any currency pair can be used and 4 hours charts are preferable. Take a H4 USD/CAD as an example. The upper band of BB (20, 2) acts as resistanc...
This is an EMA (exponential moving average) simple strategy. All traders try different settings of moving average at some point. This [forex strategy](../forex-trading-strategies) can be used on **any currency pair** . The timeframe can be either 90 minutes or **3 hour** chart...
Candle traders call 3 consecutive bullish candles 3 white soldiers as they all close higher than open. They call 3 consecutive bearish candles 3 black crows as they all close lower than open. This system uses Bollinger band (20, 2). When you see 3 white soldiers, you buy. And ...
Carry trade strategy is one of the most popular strategies among traders who follow fundamental [forex trading](http://www.forexbite.com) strategies. It involves buying currency with a high interest rate and selling a low interest rate. As a result you pay rollover interest on...
This system works for any currency pair on 1 hour chart. Indicators used are 5 EMA on close price, 6 EMA on open price and ADX (14) with a level at 20. 1. LONG when 5 EMA crosses 6 EMA from below with 1 pip gap and ADX must be over 20. 2. For conservative traders, 55 EMA and 8...
This simple system can be used by traders with busy day schedule. It uses daily chart of any currency pair. Indicators used are 5 EMA, 12 EMA and RSI 12. 1. BUY when 5 EMA crosses 12 EMA from below and RSI is above 50. 2. SELL when 5 EMA crosses 12 EMA from above and RSI is be...
Exponential moving average is similar to the Simple Moving Average (SMA), however shows faster reaction to recent price changes compared to SMA.
This trading strategy uses one of the most recurring phenomenons of the [forex market](http://www.forexbite.com) — a weekly gap between the last Friday's close price and the current Monday's open price. The gap itself takes its origin in the fact that the interbank currency ma...
**Forex Scalping** is a quick and simple trading strategy that can provide you with quick gains without taking too much risk. It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that. As a rule of thu...
The majority of signal providers focus on supplying signals based on technical analysis and a minority work on fundamental analysis. Technical analysis, show both short and long term price trends giving us flexibility while Fundamental analysis presents longer term trade signa...
Any currency pair and timeframe can be used in this system. Two indicators: Parabolic SAR with default settings (0.02, 0.2) and ADX 50 (with +DI, -DI lines). Rules are: 1. LONG when the +DI line is above the –DI line, and Parabolic SAR gives buy signal (below price). When +DI ...
This system uses MACD, moving average convergence-divergence. The pair used here is EUR/USD and time frame is 15 minutes chart. We use 30, 50, 20 for MACD. Entry point is when blue line crosses green line. You could use 20 pips for stop loss. Or you could use the latest swing ...
The setup here is MACD indicator with standard settings MACD (12, 26, 9). Any timeframe and any currency pair can use this strategy. The rule is to enter when MACD lines crossover happens. Conservative traders will wait until the next bar to close in the trade direction. When ...
These indicators are usually called momentum oscillators because the indicator line or histogram 'oscillates' (or swings) up and down between or around specific values – much like a sine wave. Various oscillators are calculated by different formulas, but they are all based on ...
A simple moving average (SMA) crossover results from plotting two moving averages each based on a different period. The moving average formed by the shorter of the two periods is called the 'fast' moving average, and the moving average formed by the longer period is the 'slow'...
Using longer timeframe chart to find the direction of a trend and using shorter time frame chart to determine the entry point. If we use **daily chart** as longer time frame chart, with a **Bollinger Band** with default setting, the middle line is the 20 SMA. If a pair is trad...
This strategy is used specifically to trade based on news that can affect corresponding currency pair. The beauty of this strategy is that it minimizes risks by inclusion of stop loss limits. However, it is not to be any kind of news. Its best used with those news releases tha...
This system works best for EUR/USD pair but it can also be used for other currencies. The best timeframe is 30 minutes. We use Parabolic SAR (0.02, 2) and MACD (12, 26, 9). 1. When Parobolic SAR gives buy signal and MACD lines crosses upwards (short EMA crosses long EMA above)...
We use 1h GBP/JPY chart here. And Stochastic Oscillator (5, 3, 3) and RSI (7) are used for indicators to define where a breakout is happening. 1. SELL when RSI and Stochastic are overbought (75) or close to that line, and we have negative candle (black or red filled) closed be...
Indicator: RSI (14) with levels at 70 and 30 Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30. Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70. **Relative strength index (...
Relative Strength Index (RSI) is a momentum oscillator, measuring the velocity and magnitude of directional price movement. Typically 14 periods were used with a value of 70 meaning overbought and 30 meaning oversold. This setup can be used for any currency pair in any timefra...
Any currency pair can be used but GBP/USD works better. It may be used for scalping. 30min to 1hr charts can be used. Indicators are 9 SMA, 100 SMA (both on close price) and RVI (100). 1. LONG when 9 SMA crosses above 100 SMA and RVI above 0. 2. SHORT when 9 SMA crosses below ...
This system works based on daily charts of any currency pairs. You would need SMA (150), RSI (3) with levels at 80 and 20, and full Stochastic (6, 3, 3) with levels at 70 and 30. 1. When price is above 150 SMA, RSI below 20 and Stochastic lines below 30, LONG with a new price ...
This trading system works for any currency pair and any time frame. The indicator we use here is stochastic (14, 3, 3). Buy when the faster stochastic line crosses the slower one from below. Sell when the faster line crosses the slower one from above. When you close a long pos...
**Stochastic Oscillator Forex trading strategy** — it's an interesting system with a rather low fail rate. It's based on a standard Stochastic Oscillator indicator, which signals a trend fatigue and change. That means that you will almost always enter on pull-backs, guaranteei...
This trading system uses a combination of simple indicators and has clear definition of entry and exit points. It can be used on any currency in any time frame. The four indicators are 5 EMA, 10 EMA, Stochastic (14, 3, 3) and RSI (14, 70, 30). You enter a LONG position when: 1...
Support and resistance lines are effectively part of trend identification, but in this case, the market may be ranging – narrowly or widely – between certain price values. A line drawn through common upper prices is known as a 'resistance' line, and the line through common low...
This strategy creates a support/resistance tunnel in a range market. And trades can be placed on the break of the tunnel. This strategy does not even need an indicator. It can be used to any currency pair and in any time frame as long as a tight range is spotted. Hourly charts...
This can be used on any currency pair. As for time frame, it is for short periods (1 hour, 15 min etc…). Indicators we use are 10 EMA, 25 EMA and 50 EMA. When 10 EMA goes through 25 and continues through 50, BUY when 10 EMA goes upward and SELL when 10 EMA goes downward, once ...
This setup uses relatively longer time frame (1 hour, 1 day etc…) compared to the faster ones in #1. The 3 indicator used are 7 SMA, 14 SMA and 21 SMA. When 7 SMA goes through 14 and continues through 21, BUY when 7 SMA goes upward and SELL when 7 SMA goes downward, once price...
This setup uses full stochastic (14, 3, 3) indicator and can be used for any currency pair in any time frame. Entry rule 1: LONG when Stochastic crosses below 20, reaches 10 and then crosses up through 20. Entry rule 2: SHORT when Stochastic crosses above 80, reaches 90, and t...
***Make trend your friend and always trade with the trend!*** Any trend in any timeframe represents a trading opportunity in that timeframe. The most difficult part is identifying a trend - especially in multiple timeframes. Trend indicators are the most basic and widely used ...
Volatility describes the day-to-day movement in prices (up or down). The theory is that a change in volatility tends to lead to a change in price. For example: Bollinger Bands are volatility indicators and if the price touches or penetrates either band, it could indicate a pri...
This trading system exploits the certain tendency of AUD/JPY currency pair (Australian dollar vs. Japanese yen) to be statistically bearish during the pre-last hour before the rollover interest is applied on Wednesday. The particular day of the week was chosen because on Wedne...