FX World
Learn a profitable trading strategy that works in all time frames and markets. The strategy involves using three free indicators with specific settings. To filter fake signals, add MACD and EMA indicators. Set take profit and stop loss according to the market and your trading style.
How to Implement a Simple yet Profitable Trading Strategy
Trading Strategy for Maximum Profits
Step-by-Step Guide to Trading with Indicators
How to Filter Fake Signals in Trading
Using MACD and EMA Indicator for Accurate Predictions
Profit and Stop Loss Strategies for Different Markets
In this video, we will discuss a simple yet highly profitable trading strategy that can help you earn 10x or even 20x profits. By mastering this strategy, you can be one step ahead of other traders. Let’s dive in!
Select Time Frame and Add Indicators
To start trading with our strategy, open your trading chart and select your desired time frame. This strategy works in all time frames, whether you are a scalper or a day trader. Next, add the necessary indicators to the chart.
Trader XO Macro Trend Scanner Indicator
Our first indicator is the Trader XO Macro Trend Scanner. This simple indicator displays clear and easy-to-understand buy and sell signals for our strategy. The indicator uses two moving averages, a fast and a slow moving average. The trading signals are based on the crossing of these two lines. To enter into a buy trade, make sure at least two or three candles are formed above the moving averages. For a sell signal, look for at least two or three candlesticks formed below the moving averages.
Filtering Fake Signals
Entering into a trade based on one indicator only can be risky as when the market enters the sideways zone, and it can give us many fake signals. The next step will be to add another indicator to filter these fake signals.
Moving Average Convergence Divergence (MACD)
The MACD is a widely used indicator in trading. It can help traders have a better understanding of market momentum. If the histogram is above the zero level, it means we are in an uptrend, and we can only enter into buy trades. If the histogram is below the zero level, it tells us we are in a downtrend and we should only enter sell trades.
Use EMA Indicator for Additional Confirmation
Lastly, we can add the EMA (exponential moving average) indicator to confirm market momentum. If the price is above the EMA line, it means we are in an uptrend. If the price is below the EMA line, it means we are in a downtrend.
Profit and Stop Loss Strategies
When it comes to profit and stop loss, they depend on which market you are trading and your trading style. It could be 10 pips for some, 20 pips for others, or even 50 or 100 pips for certain markets. Determine your take profit and stop loss based on the market’s average daily movement. If you are unsure, try setting your take profit 1.5 times higher than your stop loss and your stop loss below the last swing level.
Conclusion
With this simple yet effective trading strategy, traders can increase their chances of earning profits. By implementing the indicators carefully and managing stop-loss levels, traders can minimize the risks and maximize their returns. Remember to stay updated on market trends and tweak the strategy according to market conditions. Happy Trading!
