As a new forex trader, what you need is to find a simple forex strategy and master it on your demo account. Once, you have mastered it on your demo account, you can trade live with that forex strategy. In the beginning don't look for a complex forex strategy. 200 EMA Forex Strategy is very simple and can be easily mastered. 200 Exponential Moving Average (EMA) is one of the most widely used indicators in forex trading.
Let's start with our simple 200 EMA Forex strategy. On your MT4 Platform, open the 4 hour, 1 hour and the 15 minutes chart and plot the 200 EMA with the red color.
Now, tile the three charts, the 4 hour, 1 hour and the 15 minute vertically. This will help you view all the three charts easily with one glance of your eye. Scroll through the different currency pairs like the USDCHF, GBPUSD, EURUSD, USDJPY or whatever you like to trade. Keep this in mind, choose that currency pair to trade that is liquid and has low spreads.
Find a currency pair that has price action above the 200 EMA on the 4 hour chart as well as the 1 hour chart but below the 200 EMA on the 15 minutes chart. If you find such a currency pair that has the price action bucking the trend on the 15 minutes chart, get ready for action.
If the price action is above on the 4 hour and the 1 hour chart but below the 15 minutes chart, it means the price action is bucking the trend on smaller timeframe. Soon, it will rejoin the overall trend. Price is currently making a retracement on the 15 minutes chart so that it can rejoin the overall trend.
On the 15 minutes chart search for a suitable entry point using candlestick patterns like the hammer or the hanging man.
Practice this simple forex strategy on your demo account. This is an easy exercise and can be done one or two times daily. It will not take more than a few minutes each time. After a little practice, you will see how powerful this simple forex strategy is.
In short, what you will be doing is to find a currency pair that is bucking the overall trend on the 15 minutes chart in this 200 EMA Forex Strategy.
Mr. Ahmad Hassam has done Masters from Harvard University. Get these 3 Swing Trading Systems FREE. Master these highly profitable Candlestick Patterns with this FREE 82 page PDF Candlestick Guide.
