forex trading steps

Breakout traders are confident traders, but range traders are confused. This is because when range traders close their losing trade, breakouts traders enter into the market. Breakouts trading has been treated as an effective trading strategy by the traders for years. 

To make the confident breakout traders more confident, I am going to introduce three technical indicators that can signal the reliable breakouts. A breakout can be of any types chart pattern, trend line or support and resistance levels. 

However, for the breakout traders, the most crucial thing for successful breakouts trading is identifying the reliable breakouts because false breakouts are not profitable. We generally know one common rule of reliable breakouts that is "When the price breaks out any chart pattern and a new candle open out of the pattern completely, a reliable breakout takes place." 

We cannot deny the aforementioned principle of reliable breakouts. Now, I am going to explain the way to identify reliable breakouts, applying three special but well known technical indicators. The indicators are MACD histograms, 20 period simple moving average and volume indicator.

With MACD histograms indicator, a breakout is considered to be a reliable breakout under following conditions:

- During a bullish breakout, if MACD histograms turn into positive territory or grow longer in the positive territory, or the MACD signals line covers the MACD histograms from below, the breakout is considered to be reliable .

- During a bearish breakout, if MACD histograms turn into negative territory or grow longer in the negative territory, or the MACD signals line covers the MACD histograms from above,the breakout is considered to be reliable.

With 20 period simple moving average indicator, a breakout is considered to be a reliable breakout under following conditions:

-During a bullish breakout, if  the price crosses the 20 period simple moving average from below,the breakout is considered to be reliable.

-During a bearish breakout, if the the price crosses the 20 period simple moving average from above,the breakout is considered to be reliable.

With volume indicator, a breakout is considered to be a reliable breakout under following conditions:

- During a bullish or bearish breakouts,if the volume increases the breakout is considered to be reliable.

Dear Traders,hope these indicators will help you a lot in identifying reliable breakouts. If you have any question regarding this post, you can drop it into the comment section below. I generally respond to your comments within 24 hours.

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Support and resistance level breakouts strategy is always been considered as effective trading strategies by the winners in forex trading. A support level indicates that the financial market is finding it difficult to break through it, and may head higher in the near term. In other way, a resistance level indicates that the financial market is finding it difficult to break through it, and may head lower in the near term.

(a) Find support and resistance lines considering the swing highs and swing lows.

(a) Find support and resistance lines considering the swing highs and swing lows.

(b) The first step will make a horizontal channel, and the width of the channel should not be that large.

(c) We will go short when the support line breakout takes place ,and at the same time, the MACD histograms turn into negative territory or grow longer in the negative territory.

(d)  The stop loss for the long trades should be placed at 60% of the channel width.

(e) The profit target should be at the next support level or at the 1:1/1:2 risk to reward ratio.

***Note: The most tricky part of this trading system in finding the support and resistance lines considering the swing highs and the swing lows .It is not necessary to make the support and resistance lines to touch every swing highs or every swing lows. If there are three swing highs and three swing lows, we will draw the support and resistance lines through the swing lows and swing highs respectively (if possible). 

If we cannot draw the support and resistance lines through all of the swing lows and swing highs respectively, the support line should be drawn through the lowest low, and the resistance line should be drawn through the highest high. Remember, the rest highs and lows should be relatively close to the resistance line and support line respectively.

The Dragunov SPD forex trading system is named after the name of Dragunov SPD gun. I named the system after the name of a gun because I consider forex trading as a war. As the soldiers at war, currency traders not only need to gain the pips but also to protect themselves from the enemies through risk management and effective order execution. 

Anyways, this trading system is designed for the day traders, and it does not require any technical indicators. Commonly, 30 to 50 pips can be gained with this trading system. This trading system should be applied on the 15m or 30m chart. Any currency pairs can be traded with this trading system. 

The trading strategy with this technical indicator involves in identifying the support and resistance level. A support level indicates that the financial market is finding it difficult to break through it, and may head higher in the near term. In other way, a resistance level indicates that the financial market is finding it difficult to break through it, and may head lower in the near term

(a) Identify the support level.

Above illustration shows the way to enter a short order with this trading system.

yourFXguide-Every successful currency trader has an effective trading system installed on his or her trading platform. If you are a scalper, that means if you trade frquently, "Zebra Desert Eagle" forex trading system is for you. 

"Zebra Desert Eagle" forex trading system is composed of two technical indicators Bollinger Band(default setting) and 3 period Relative Strength Index(RSI). The levels of the RSI should be customized as 10 and 90. This forex trading system should be applied on 5m chart not larger than that. 

We know that RSI is an oscillator that moves up and down within a range to explain the oversold and over bought situations of the market. Bollinger Band is a trend indicator that has three bands such as upper band, lower band and middle band. 

(1) The price should touch the lower band of the Bollinger Band

(2) The RSI reading should be lower than 10.(If the above two conditions are met, a buy order is to be placed)

(3) Stop loss will be placed 10 pips lower than the entry price.

(4) Profit target will be placed 10 pips higher than the entry price.

In the above illustration, we can see long trade opportunities, marked with  green arrows, with this trading system.

(1) The price should touch the upper band of the Bollinger Band

(2) The RSI reading should be higher than 90.(If the above two conditions are met, a sell order is to be placed)

(3) Stop loss will be placed 10 pips higher than the entry price.

(4) Profit target will be placed 10 pips lower than the entry price.

In the above illustration, we can see short trade opportunities, marked with red arrows, with this trading system.

Remarkable, this trading system may provide inaccurate signals, if there is any important economic or political events. Traders should not trade with this trading system, during any important economic or political events. 

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I consider forex trading as a war. That is why, I named my trading systems by the name of weapons.However, today I am going to write about a trading system which is specially for scalpers. Scalpers are the traders who trades frequently. They are the brave traders who wants to capture every move of the market. 

"Desert Eagle" forex trading system composed of three technical indicators which are 60 period SMA, MACD histograms and Parabolic SAR. The system is to be applied on the smallest time frame available. The treading strategy with this trading system is very easy.

(1) First of all, look for the market price to cross the 60 period simple moving average from below.

(2) Wait for the MACD histograms to turn into positive territory.

(3) Wait for the parabolic SAR to appear below the market price. This is the entry signal.

(4) Place the stop loss 10 pips below the entry price.

(5) Place the profit target 10 pips above the entry price.

(1) First of all, look for the market price to cross the 60 period simple moving average from above.

(2) Wait for the MACD histograms to turn into negative territory.

(3) Wait for the parabolic SAR to appear above the market price. This is the entry signal.

(4) Place the stop loss 10 pips above the entry price.

(5) Place the profit target 10 pips below the entry price.

Dear traders, these are the trading strategy and setup with "Desert Eagle" trading system. This trading system is recommended only for the scalpers.If you believe you are a scalper, you can apply this trading system on your trading platform.

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yourFXguide-Moving Average and MACD Train trading system is one of the most effective trading systems I have ever found. This post explains the technique to identify the short entry signals with Moving Average and MACD Train trading system more effectively.

Before reading this post, you should be introduced with the basic to Moving Average and MACD Train trading system and the way to identify the entry signals with the system. Click here to read the first post I wrote on Moving Average and MACD Train trading system.

If you already read my first post  about Moving Average and MACD Train trading system, you came to know that a short entry signal with this trading system is found when the price moves below the 50 SMA and 100 SMA, and MACD histograms turn into negative territory.

Okay !!! Now let see how we can identify the short entry signals accurately with Moving Average and MACD Train trading system. Some times we see that price moves below the 50 SMA and 100 SMA, and MACD histograms turn into negative territory, but price does not stay below the 50 SMA and 100 SMA for a long period of time. 

This type of situations are most commonly found when the MACD turn into negative territory first time after staying in positive territory for a long period of time. In such cases, the price moves below one of the SMA indicators the MACD histograms turn into negative territory and make a small loop like formation in negative territory and again turn back to the positive territory. 

Traders have to put extra care in placing a short entry when MACD histograms turn into negative territory first time after staying for a long period of time in positive territory.

With  Moving Average and MACD Train trading system, sometimes a short entry signal is found but the short entry does not be profitable as expected. One of the such situations is illustrated in above price chart.

We can see the distance between two SMAs is relatively wider, and the MACD histograms turn into negative territory when price moves below the first SMA closer to the price. In such cases, a short entry may not be that much profitable as expected.

A very profitable and accurate short entry signal can be found with Moving Average and MACD Train trading system when the price moves below the 100 SMA and 50 SMA, and also breaks any of the price chart pattern. Here in the above illustration, breakout of a bearish flag pattern happened.

Another effective short entry signal with this trading system can be found when the price moves below the 50 SMA,100 SMA and a rising trend line. At the same time MACD histograms turn into negative territory.

With this trading system, a falling trend line can be used to find some accurate short entry signals. The short entry signals are found when price moves below the 50 SMA and 100 SMA after kissing the trend line. The MACD histograms must turn into negative territory or grow longer in negative territory.

Exness is a forex broker that has been serving in the industry since 2008. It gained customers satisfaction through efficient and effective services.  Day by day the existence of Exness in the retail forex industry getting stronger. So many positive reviews can be found online about Exness, albeit some negative reviews also exist.