Make sure to read this post to remember how I locate the trade setups and set the stop loss and target orders: I am going to show you the same simple Forex trading system here.
Restart your MT4 platform. To create the price chart with these indicators, just download and install this template and apply it to each chart. Then locate the template file on your computer, and click on it. Please do your best to follow the above stages precisely.
It is very easy. If you are not good enough with computer and you have a hard time with the indicators installation, please ask someone who is good with computers to do it for you. Of course the above video shows all the stages. So watch it carefully. I sit at the computer, after the daily candlestick close which is at 5pm EST. I check the charts, take my positions in case I find any setups, and then close my computer.
I will share the positions with you. So stay tuned and make sure to follow me. However, you can add it if you want. It will not make any problems. Like my mentor, Chris, I like to keep my trading, business and life, as simple as possible. I enjoy them more when they are simple and easy to handle.
One is set to an the other one to That is why you see two moving averages on the candlesticks. We just use the candlestick breakouts with these moving averages. Stop loss will be around the low price of Click on the image:. We go long at the open of Stop loss is around the low price of The next candlestick hits the TP, and so, our position lasts less than 24 hours I trade the daily chart, but I am a day trader.
The above setups I showed you, are almost continuation setups. I mean, a movement is already started, but we follow it after a few candlesticks that make the indicator go to the situation that we want. The above setups are not fresh reversal setups. These are the fresh reversal setups. We take the positions at the open of the candlestick that opens after the candlestick that the yellow arrow shows. I think I am done with describing the trading system.
In the next posts, I will analyze the live markets, and will show you the formed setups to help you master the trading system. I check the markets after the daily candlestick close which is at 5pm EST, and I will share the formed setups that I locate after that.
I know this system is mechanical, but there are a few things that if you consider, you will have a much higher success rate. Trading the slow and ranging markets will have a higher risk and you will have a lower success rate. Therefore, the setups are all fake and are not because of the big players participation. For example, when you see such a big candlestick below chart , while all the indicators met a good long trade setup condition, you think you have found a PERFECT trade setup, and so, you take it right away:.
I am not saying all the setups that form on the ranging markets will hit the stop loss. You can make money on the ranging markets too. However, you will have a lower success rate. Below is a trending market. Look how many short trade setups it formed that could easily hit the target:. On all the long trade setups, RSI 9 has to be above the 50 level and RSI 3 above the 70 level which is on the overbought area.
When both of them reach the overbought area and keep on moving on it, then we have a strong trend that can make a lot of money for us. Look at the 4 trade setups I am showing on the blow chart and the yellow areas.
When both RSI indicators are like that, we will have the most profitable trade setups:. Generally, you will make profit as long as RSI 3 is moving on the overbought or oversold area and RSI 9 also joins it. If you pick these setups only, you will have a very high success rate.
Please also note that your stop loss will be triggered in some of the positions you take, even when everything looks great. This system can easily make you over-trade, because you see some setups on the daily charts every day. It is not like the other systems that hardly form a setup.
However, over-trading is your enemy. You should not take all the trade setups you find. You should locate and analyze them, and choose the best and strongest one, and forget about the rest.
The other thing is, this trading system works on all time frames. I just check the charts once every day, and I am done. You will only spend more time and energy and you can wipe out your account sooner than later. So avoid the shorter time frames. I use this system on the weekly and monthly time frames as well as the daily. But from next week I will show you the weekly and monthly setups also.
Never take a position without setting a reasonable stop loss, the way I have above. If you trade without stop loss, you will wipe out your account, whether you are a novice trader or you have been trading for one million years.
This is the only thing I can guarantee. Also, this trading system is a set and forget system. Just check the charts at the close of the daily candlesticks, take your positions, set the stop loss and target, and then go and come back the next day. Almost all trading systems make money, if we master them. Simpler trading systems are easier to master, because they are easier to understand and follow.
They also make money. They can even make more money than the complicated systems. So, try to choose a simple and easy to understand system, learn it, and then practice to master it.
You just ruin the trading system if you do this. The most important thing that prevents novice traders from making money, is over-trading, and, greed. You mainly lose because of your greed. Your greed pushes you to make more money, but it causes you to lose more money and waste a lot of time.
So, you and what you have in you, are your biggest enemies. The trading system is your friend, if you follow it properly.
Market is your friend if you follow it. Just learn a simple trading system and its rules. Learn it as easy as it is. Take your position in your demo account, set the stop loss and target as your trading system says. Repeat this until you master the trading system. Repeat your success with your demo account at least for 6 consecutive months.
I mean you should become profitable for 6 consecutive months. Then open a live account, as small as possible, and repeat the same thing with this account for 6 more months at least. When your live account is too small, you can treat it like your demo account, and so, you will not have emotions.
So, this live trading is the continuation of your demo trading. It is to help you master your trading system. It is not to make money for you. It helps you trade without any emotions, specially greed. Your job is taking the too strong setups only. If you learn how to take the too strong setups properly, then money comes by itself.
You will become a great trader, if you follow the track I showed you above, otherwise you will not get anywhere, even if you practice and learn for years. I have seen so many traders who cannot make money even after 20 years of trading, because they are still greedy. They know a lot. Teach your trading system to a 6 years old child, and ask him to trade.
Tell him it is just a computer game. He will make profit. But teach it to a 50 years old man and tell him that the system is about making money and can make him a millionaire.More...