Collection of Forex Trading Strategies Most Accurate Indicators Are Always Consistent

Tips and tricks for reading forex indicators for consistent profit

Most beginners jump into the forex trading business because they are tempted to profit or profit generated from the forex business.

Yes ... with a forex business we can make big profits in a relatively fast time compared to other businesses.

But to be able to make a profit is not as easy as it is seen, because it needs to know and master how to analyze forex price movements appropriately.

It takes the best forex trading strategy so that profits are consistent or always profit, both for scalping techniques and daily morning trading.


Forex trading is a trading system that can generate two-way profits, meaning that we can get a profit when an asset price is rising or falling.


THE MOST EASY AND BEST STRUCTURE STRATEGY COLLECTION OF TRADING

In forex trading there are only two types of trading, namely Buy or Sell means:

  • Select a Buy order when the price movement prediction will rise
  • Choose a Sell order when the price movement prediction will go down

So we only have to be able to predict whether a price movement will rise or will decrease from the current price.

And to predict it there are two kinds of analysis, namely fundamental analysis and technical analysis. What we will discuss is technical analysis using indicators.

Collection of Technical Analysis Strategies with the most accurate indicators:


  • Bollinger bands indicator
  • Moving Average indicator
  • Alligator indicator

 1. STRATEGY FOREX TRADING WITH BOLLINGER BANDS INDICATORS

Bollinger bands indicators consist of 3 kinds of lines, namely:

  • Upper bands
  • Middle Line (Middle)
  • Bottom line (Lower bands)

For the actual center line is exactly the same as the Moving Average indicator line with a period of 20. That acts as the basis for the calculations for Upper bands and Lower bands.

Bollinger bands indicators can be used to find out if a market is crowded or quiet.


The size of the distance between the line at the top (Upper bands) with the bottom line (Lower bands) is influenced by the level of price volatility that is happening in the forex market.

When the market is crowded it is marked by the distance between the Upper bands with the Lower bands large / far from before (Tends to strengthen the trend that occurs)
When the market is quiet it is marked by the distance between Upper bands with small / narrow Lower bands (tend to be sideways / consolidated)

Strategies for Using Bollinger Bands Indicators

In theory there are two kinds of strategies how to easily read the indicators of bollinger bands, namely:

  • Will the price reverse direction (bounce / bounce)?
  • Will price movements continue with the current trend (continuation / breakout)

As we discussed above the bollinger bands indicator serves to analyze the price volatility that is happening.

1. When the price turns bouncing / bouncing



Price movements will tend to bounce after touching the top line (Upper bands) or lower bands with the center line as the target.

In this case the price will not pass from the Upper bands and Lower bands, so we can use this signal to make order decisions on forex trading.

How to read it is very easy enough to see when the movement of the candlestick touches the upper line it is predicted that the price will turn towards the middle bands or to the lower bands.

The way to read the signal is:
Choose Buy order:

  • when the movement of candlesticks has touched the Lower bands
  • Wait until the bullish / rising candlestick is formed (white)
  • Don't forget to set / put stop loss

Choose Sell order:

  • when the movement of the candlestick has touched the Upper bands
  • Wait until the formation of a bearish / down candlestick (red / black)
  • Don't forget to set / put stop loss

Important Note: This method only applies when the market is stable, because when market volatility is high, the above method becomes dysfunctional.

Then how do you know the market is stable and high volatility?


In order to make it easier to explain, you can consider the picture below:


From the picture above we can see that there are two conflicting theories, namely:
A => Candlesticks touch the bottom bands / Lower bands, but prices do not turn upwards
B => Candlesticks touch the lower bands / Lower bands, and prices turn upwards

For a market that tends to be stable, it is indicated by the direction of movement of the Upper bands and the Lower bands tend to be parallel or not leading to a sharp slope as shown above.

In contrast to the market with high volatility its appearance is indicated by the two lines of Upper bands and Lower bands that are like to open / spread away, by pointing to the movement of certain trends whether it is up / down or down / down as shown above (right and left).

2. When prices continue / continue the current trend

The movement of the bollinger bands line tends to widen when the forex market is busy and narrows when forex is quiet.

Besides the strategy that prices tend to bounce / reverse direction after the candlestick touches the Upper bands and Lower bands line which only applies when the market is stable / consolidated.

But it is not always when the price touches the Upper bands and Lower bands line the price movements will then reverse direction. It could continue the trend / continuation direction.


That is why when determining the entry point for Buy orders must wait for the formation of a whole bullish / ascending candlestick (white), to anticipate if the price does not reverse.


Although the price does not reverse direction we can still take the opportunity of forex orders, namely:

From the picture above we can see that there are two conflicting theories, namely:
A => Candlesticks touch the bottom bands / Lower bands, but prices do not turn upwards
B => Candlesticks touch the lower bands / Lower bands, and prices turn upwards

For a market that tends to be stable, it is indicated by the direction of movement of the Upper bands and the Lower bands tend to be parallel or not leading to a sharp slope as shown above.

In contrast to the market with high volatility its appearance is indicated by the two lines of Upper bands and Lower bands that are like to open / spread away, by pointing to the movement of certain trends whether it is up / down or down / down as shown above (right and left).

2. When prices continue / continue the current trend

The movement of the bollinger bands line tends to widen when the forex market is busy and narrows when forex is quiet.

Besides the strategy that prices tend to bounce / reverse direction after the candlestick touches the Upper bands and Lower bands line which only applies when the market is stable / consolidated.

But it is not always when the price touches the Upper bands and Lower bands line the price movements will then reverse direction. It could continue the trend / continuation direction.


That is why when determining the entry point for Buy orders must wait for the formation of a whole bullish / ascending candlestick (white), to anticipate if the price does not reverse.

Although the price does not reverse direction we can still take the opportunity of forex orders, namely:


Example on Sell order:

  • When the Upper bands and Lower bands line starts to move wider by pointing downwards
  • Even though candlesticks have touched the Lower bands, there is also no bullish / rising white candlestick
  • The second candlestick after the first candlestick to touch the Lower bands is still bearish candlestick (usually red / black)
  • That is a sign of price movement will be downward / downtrend.
  •  To order Buy, the way it works is almost the same, only the trend movement is upward.


Easy isn't it? how to read and use the bollinger bands indicator to predict the direction of forex.

If there are still difficulties, I will provide additional Bollinger Bands strategies to simplify forex movement analysis.

To make it easier we just add the trend line / Trendline on the trading chart like the following:
Each price movement must form a zigzag with a valley point and a peak point. To draw the least trendline line, it takes 2 valley points or 2 peak points.

In the direction of the uptrend / upptrend drawn by the trendline line is the valley point:



The picture above the trendline line has been broken by the price. Before the trendline line has been broken, the trend is going up / uptrend, but when the trendline has been broken, there will be a trend reversal. Previously the upptrend was downtrend.

We can order SELL at the point where the trend line is broken by waiting for confirmation of a bearish candlestick formation (red) below the trendline line.

In the direction of the downtrend trend drawn by the trendline line is the peak:

It takes at least 2 peak points to draw a trend line on downtrend price movements.


The trend movement will reverse direction when the trendline line has been penetrated. Thus we can order BUY at the price where the trendline line has been broken, by waiting for the formation of a white candlestick above the trendline.

That is forex analysis strategy using candlestick Bollinger bands, practice with a demo account first to adjust to your trading style.

 2. FOREX TRATING STRATEGIES WITH MOVING AVERAGE INDICATORS

The function of the Moving Average indicator is to determine trends, and predictions of price movements will reverse or continue when they reach a certain price range.

There are 4 Kinds of Forex Strategies with Moving Average Indicators, namely:


  • Moving Average Strategy
  • Moving Average Strategy Bounces
  • Crossing Moving Average Strategy (CrossOver)
  • Moving Average Double Strategy

1. Moving Average Moving Strategy

We are free to choose the type of MA that we like, that is, you can choose SMA or MA (free) with the default settings, without changing anything.

Signal Order BUY:

  • When a bullish candlestick (white) is formed from below the MA line, then closes above the MA line (as in the picture), then the next move tends to be bullish.
  • Wait until the candlestick is fully formed
  • Don't forget to put a stop loss on the lowest level of the candlestick that breaks the MA line.

SELL Order Signal:

  • When a bearish candlestick (red) is formed from above the MA line, then closes below the MA line (as in the picture), then the next movement tends to be bearish.
  • Wait until the candlestick is fully formed
  • Don't forget to put a stop loss at the highest level of the candlestick that breaks the MA line.

2. Moving Average Strategy Bounces

The bouncing strategy is the strategy of reading the movement of the analysis using the Moving Average, where a price movement when touching the MA line, the price will bounce back (reversal).

Briefly this strategy describes when forex price movements are not able to penetrate the Moving Average line so that it becomes bouncing.

To see the signals that emerge from this strategy it is very easy to simply monitor the appearance of a candlestick that approaches the Moving Average line.

This method can also be used to determine the signal when the strategy to penetrate above does not appear. To make it easier to explain, you can see the picture below:

Explanation of the picture:

The price movement is rising (bullish / uptrend), then a bullish (white) candlestick is formed which is closed just in line with the Moving Average. But the next candlestick is bearish / down (red) candle which finally reverses the direction of forex prices.

SELL Order Signal:

  • Wait for the bullish / rising candlestick (white) to form intact and close right on the Moving Average line
  • Followed by the emergence of a bearish / down candlestick (in red)
  • Further predictions of price movements will tend to decline / bearish
  • Make a Sell order with the entry / open position after the red candlestick is formed as a sign of confirmation
  • Place stop loss at the highest price level of bearish / red candlestick

For examples of BUY orders, with a bouncing strategy, you can pay attention to the picture below to make it easier to understand:

Explanation of the picture:

Price movement is down / bearish, then a bearish candlestick is formed (red) which is closed just in line with the Moving Average. But the next candlestick is a bullish (white) candle which finally reverses the direction of forex prices.

SELL Order Signal:

  • Wait for the bearish candlestick (red) to form intact and close to the Moving Average line
  • Followed by the appearance of a bullish / rising candlestick (white)
  • Further predictions of price movements tend to rise / bullish
  • Make a Buy order with an entry / open position after the white candlestick is formed as a sign of confirmation
  • Place a stop loss at the lowest price level of the bullish / white candlestick

3. CrossOver Moving Average Strategy

This strategy is to determine the entry point in an open position by waiting for the moment of signal to be reversed.

This method requires 2 lines of Moving Average indicator (to make it easier to read using different color lines and thicknesses:

  • Moving Average indicator with period 14 (red, thin)
  • Moving Average Indicator with Period 35 (blue, thick)

Here's how it looks:


Need to know :

  • When the period 14 MA line (red) is below the period 35 MA line (blue) means there is a downtrend / downtrend.
  • When the period 14 MA line (red) is above the 35 period MA line (blue) means that an Upptrend / up trend is happening.\

  • Moving Average Indicator Strategy with CrossOver:


Wait for the MA line with Period 14 to penetrate the MA line with Period 35.

BUY order signal:
When the Red line (14) from above penetrates the Blue line (35) down

SELL order signal:
When the Red line (14) from below penetrates the Blue line (35) and above

4. Moving Average Double Area Strategy

This method is very effective on a trendy market, both in the upward and downward trend movements. And is suitable for scalping trading styles.

This method can also be applied when we have missed the opportunity to open a position with the CrossOver Moving Average strategy above.

This method is by utilizing the area between the two Moving Average indicator lines. This strategy also requires two Moving Average lines, to make it easier to use different colors:

  • Moving Average indicator with period 14 (red, thin)
  • Moving Average Indicator with Period 35 (blue, thick)

Wait until the two MA lines have the same slope (will form a trend). Or when after the red MA line (14) intersects the blue MA line (35).

BUY or Rise signal:

  • Occurs at the price movement Upptrend / uptrend
  • Make a BUY order when the price / candlestick enters the area (yellow) between the two lines of the Moving Average indicator.

2. STRATEGY FOREX TRADING WITH ALLIGATOR INDICATORS

In accordance with the name of the indicator (Alligator), how to read this indicator is also like an alligator.

There are only 3 types of steps, namely:
  • Waiting for Hungry
  • Prey
  • Lack (asleep)
To make it easier to read the signal, we must remember the color of each indicator line, the most important thing is to remember the color of the LIP line.

Color settings can be set according to the favorite color to make it more comfortable.
How to read the Alligator indicator:

  • When all three indicator lines (jaw, teeth, lips) are close together, the Alligator is overflowing / falling asleep, and it is not recommended to open a trading position at a time like this.
  • The longer the alligator sleeps, the more hungry when you wake up later
  • The more alligators eat, the longer he sleeps.
  • If the lip line below the other lines means a downtrend is happening
  • If the lip line above the other line means an upptrend is going on

How to use indicators:

SELL order signal:

  • When the indicator line starts to open / expand
  • The Lip Line is below the other lines


BUY order signal:B

  • When the indicator line starts to open / expand
  • The Lip Line is above the other lines

Those are some of the ways in which forex trading analysis techniques are technically using the most accurate indicators in a simple and easy way but are able to produce consistent profits. Hopefully useful ...



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