ForexLia
Trader shares profitable forex strategy using 2 MABB indicators with specific settings, for buy/sell trade signals. Stop loss and profit target set.
Forex trading strategy: Easy and Simple for Beginners
Introduction: Sharing Profit
As a trader, it is always exciting to see the profit one has made from their trading strategy. It becomes even better when you can share it with others, and they can learn from it, and use the same strategy to make money too.
In this article, we will discuss a forex trading strategy that is easy and simple for beginners to understand and implement. We will examine the indicators, the settings, and the signals that will guide you in taking profitable trades.
The Strategy: NZD/USD One Hour Timeframe
The strategy is based on the NZD/USD currency pair, and we will be using the one-hour timeframe. The indicators we will need are two moving average indicators with some changes in settings. The strategy is based on the crossover of the moving averages and the colors of the lines.
1. The Indicators: Moving Averages
The two moving average indicators we will be using are:
a) The 5 Exponential Moving Average (EMA), colored green
b) The 10 Exponential Moving Average (EMA), colored black
2. The Settings: Changing the Moving Averages
We will need to change the settings of the moving averages so that they are aligned with the strategy.
a) The 5 EMA: We will change the period to 3
b) The 10 EMA: We will change the period to 5
3. The Signal: Crossover and Color Formation
The strategy is based on the crossover of the two moving averages, and the color formation of the lines.
When the market crosses the moving averages, and the black zero level line upward with a green candle, and the color formation is such that the red line is below the black line middle, and the green line is on top, we take a Buy Trade Signal on the next candle.
Similarly, when the market crosses the moving averages, and the black zero level line downward with a red candle, and the color formation is such that the red line is below the black line middle, and the green line is on top, we take a Sell Trade Signal on the next candle.
4. The Entry: Placing the Trade
Once we have the signal, the next step is to place the trade. We need to set the stop loss and the profit target.
a) Buy Trade: We place the Buy Trade at the signal confirmation. We set the stop loss at the previous candle’s low point, and the profit target at 1:2 (Risk:Reward ratio).
b) Sell Trade: We place the Sell Trade at the signal confirmation. We set the stop loss at the previous candle’s high point, and the profit target at 1:2 (Risk:Reward ratio).
5. The Exit: Winning the Trade
If our trade is successful, we will exit the trade at the profit target we have set. We have won the trade if we have set the stop loss and the profit target correctly.
Conclusion: Like, Share, and Subscribe
In conclusion, this forex trading strategy is easy and simple for beginners to implement. We have explained the indicators, the settings, the signal, the entry, and the exit. If you like this strategy, please like, share, and subscribe to our channel. We will see you in the next video. Happy Trading!
