Remember that there will be a different trend on each time frame and it is perfectly acceptable to have a downtrend on a 4 hour chart and an uptrend on the daily chart.
In order to objectively determine the trend on the time frame of our choice, we are going to use the exponential moving average indicator that every charting platform will have. The ema strategy is a multi-timeframe forex strategy which means you need the daily chart, the 4 hr chart and the 1 hr chart. Once price lines up on the right side of the EMA on all charts, we look to trade bounces from the moving average.
We will use long trends for this example. Every trading method will have times where not everything is running according to your plan. With this trading strategy, there are 2 issues that are quite common. Dealing with them is quite simple though. Every time frame has to match and have the same trend.
If one time frame is different, you wait until all are the same trend. This can take a while so be patient! Mail will not be published required. Forex Swing Trading Strategy 7: In order to do that, there is one very important thing we must know about the market.
We want to know is what the trend is. Here are the 5 steps to trading this Forex strategy Place the ema on the daily chart of your Forex pair. See if its and uptrend or a downtrend. If yes, switch to the 1 hr chart and check if the 1 hr chart is in the same trend as the daily and the 4 hr charts. It is in the 1 hr chart where your trade entries are executed when the trend in the 1 hr chart is the same as the 4 hr and the daily charts. Posted in Basic Swing Strategies.
Leave a Reply Click here to cancel reply. Powered by WordPress Designed by:More...