Trading strategy based on the fundamental analysis Three most profitable Forex trading strategies Important! These strategies make up a basis to develop your own forex trading strategy. The suggested setting and recommended levels to put pending orders are nothing more than a recommendation. If you do not like the backtesting or the performance on a real account, the strategy may not be a fail.
You just need to find individual parameters for indicators suitable for a particular asset or a current market situation. The description of each strategy contains its template with indicators and a brief instruction for their installation. At the end of the article, there is a separate section devoted to practical recommendations. It explains how to launch these templates in real trading and start making money with LiteForex!
If you are interested in a strategy, open a demo account with LiteForex, and follow the recommendations given in this overview. If you profitable indicator strategies any questions, feel free to ask them in the comments! However, Internet resources suggest different recommendations concerning the Bali trading strategy. According to the developer, Bali is a scalping forex strategy, or at least, it is designed for short term time frames.
It is also good for day trading. It suggests quite short stop losses SL and take profits TP. However, the recommended timeframe is rather long, and so, signals are sent quite rarely.
The 4-hour chart is used for all of the 5 steps, besides the filter chart which uses the daily time frame. The Tenkan and Kijun lines are part of the Ichimoku indicator, but the remaining 3 parts of the indicator were removed please read more here about the Ichimoku indicator. The strategy needs Tenkan and the Kijun to be aligned to one side: a.
Indicators used: Linear Weighted Moving Average. Period 48 red line. Linear Weighted Moving Average serves here as an additional filter. As the LWMA attaches more importance to the most recent price moves, there are almost no delays in the long-term timeframes. Occasionally, the LWMA may send an early signal in the long run.
But this strategy considers only the MA position relative to the price movements.
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If the LWMA is below, it is a buy signal. If the line is above the price, it is a sell signal. Trend Envelopes V2. Period 2 profitable indicator strategies and blue lines. The indicator is also based on Moving Average, but it has a different calculation formula. Its layout is more accurate the price noise is reduced. It allows you to identify the breaks in the trend a little profitable indicator strategies than the ordinary MA.
Trend Envelopes has an interesting property. It is a kind of trading signal. DSS of momentum. The settings are in the screenshot below. The indicator is displayed in a separate window under the chart. This is an oscillator that identities trend pivot points. It does it quicker than standard oscillators. It has two lines: the signal line is dotted, the additional line is solid.
But the receiving line has two types of colours orange and green. Note that the indicators in the Bali trading strategy are selected so that they provide an early signal buy and sell.
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This gives a trader more time to confirm the market moves and check the fundamental factors. Past the indicators into the folder and restart the platform. Conditions to open a long position: The price breaks through the orange line of Trend Envelopes upside.
At the same candlestick, the down orange line changed into the rising blue line. The profitable indicator strategies is above LWMA. When the previous condition is met, expect the candlestick above the MA to appear. The candlestick must close above the red line of LWMA.
Top Indicators for a Scalping Trading Strategy
There must be the blue line of Trend Envelopes at the signal candlestick. The additional line of the DSS of momentum at the signal candlestick should be green. This line must be above the signal dotted line that is, it is breaking it through or has already broken. Enter a trade when the signal candlestick closes. I recommend setting a stop loss at a distance of points in four-digit quote.
A take profit is points. The arrow points to the signal candlestick where Trend Envelopes colours change.
Note purple ovals that the blue line is below the orange and is moving otherwise the signal should be ignored. At the signal candlestick, the green line of the DSS of momentum is above the dotted line. Conditions to open a short position: The price breaks the blue line of Trend Envelopes downside. At the same candlestick, the rising blue line changes into the falling indicator- free binary options strategies line.
The candlestick is below LWMA. When the previous condition is met, expect a candlestick to profitable indicator strategies below the moving average.
The bane of the strategy is to ultimately accumulate these series of little profits into massive payouts over a period. A bullish signal is in place when the green Forex Analyzer PRO custom indicator is aligned below price bars. One critical thing about this strategy is to ensure that once the ZigZagArrow 12, 5, 3 custom indicator issues a signal, the buy signal is valid if the Forex Analyzer PRO custom indicator issues its signal within the next 3 successive candles.
It must close under the red line of LWMA. There must orange line of Trend Envelopes at the signal candlestick. The DSS of momentum additional line should be orange at the signal candlestick. It should be located below the signal dotted line that is, it is breaking through it or has already broken.
Top Indicators for a Scalping Trading Strategy
The below screen displays a candlestick that closed at the level of MA the red linealmost fully below the line. The below screen shows that the DSS is below its signal profitable indicator strategies at the signal candlestick. Besides, the blue line is flat, not rising. Signals are relatively rare, profitable indicator strategies can wait for one signal for a few days. Do not trade when the market is flat. Test profitable indicator strategies strategy directly in the browser and assess the performance.
It is based on the springy action of the price — if the price rose quickly, it should fall sooner or later. We can use a chart in any terminal and a timeframe W1 although you can also use a daily timeframe.
You should analyze the size of the candlestick body of different currency pairs. You will enter a trade on this pair at the beginning of the next week.
Conditions to open a long trade: The bear candlestick, indicating the price action for the previous week, has a relatively big body. You enter a long trade at the beginning of the next week.
You should set a stop loss at a distance of points and a take profit - at points. In the middle of the week, exit the trade. It may be closed with a take profit or a stop loss. Then, again expect the beginning of the week and place a new order. Do not place orders at the end of the week. It is clear from the chart that, following each bearish candlestick, there is always a bullish one although it smaller.
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The matter is that what period you should take to compare the relative length of candlesticks. It is individual for each currency pair. Note that some small bear candlesticks were followed by rising candlesticks. The relatively small fall, occurred in the previous week, may continue. Conditions to open a short position: The bullish candlestick, indicating the action during the previous week, has a relatively big body. Open a short position at the beginning of the next week.
Red arrows binary robot and earnings to the candlesticks that had large bodies relative to the previous bullish candlesticks.
All signals were profitable except for the trade that is marked with a blue trade. The disadvantages of the strategy are profitable indicator strategies signals, although the percentage of profit is quite high.
And you can launch the strategy trading multiple currency pairs. This strategy has an interesting modification based on similar logic. Investors, day traders, working with a trading volume prefer intraday strategies. They bitcoin wallet electrum not have enough money to make a strong influence on the market.
So, if there is a strong market action in the weekly profitable indicator strategies, this signal the pressure made by big traders. Differently put, if there are three weekly candlesticks profitable indicator strategies the same direction, the fourth candlestick should be in this direction too. The psychological factor is also important here.
Those, who have been pushing the market in one direction, should start taking the profit in a month. It is good if the next following candlestick is bigger than the previous one. Doji candlesticks candlesticks without bodies are not taken into account.
A stop loss is set at the close level of the first candlestick in the sequence. An example of such trade setups is in the screenshot below. It can take 2 or 3 months.
Which Forex Indicator is the Most Profitable ? - Forex Education
But if you launch the strategy on multiple currency pairs, this term of expectation is justified. Take swaps into account! This is a trend strategy. Most sources suggest using it in different timeframes, including minute ones, but market noise lowers its efficiency in very short timeframes.
Indicators used: EMA with periods 5, 25, and Apply to — close closing prices. Parabolic SAR. Leave the default parameters you can only adjust the colour if you want. Parabolic SAR is below the candlesticks.
Parabolic SAR is above the candlesticks. You can enter the trade at the same candlestick when the moving averages have crossed. A stop loss is set close to the local low, take profit is points. But if you manage trades manually, you can make a bigger profit. It indicates a change in the slope from a rise to a flat.
Which Forex Indicator is the Most Profitable? Share Tweet There is no clear proof that some indicators can be profitable. A lot of scientific research papers tried to find an answer to this. All researchers tried to find good forex trading indicators and create a ranking list looking for the best forex indicator and the most profitable forex indicator strategy.
It is clear from this screenshot that all the three signals two longs and one short yielded profit. One could have entered the trade at the next candlestick. It is after the signal one to be sure in the trend direction. However, a good entry point would have been missed. It is up to you whether to risk or not.
These parameters will hardly work for hourly timeframes. Well, you are familiar with the theory now. I want to briefly describe how to launch these strategies in real trading. Are you ready?
From theory to practice Step 1. Open a demo account. It is free, you do not have to top up the deposit. On the website home page, there is the Registration button. Click on it and follow the instructions.
You can also open an account in other menus. For example, in the upper menu, trading conditions for an account, and so on.