Kevin Schott
Member
Good day everyone.
Foreword:
Most systems for trading Forex, Indices, Commodities or even Stocks seems to be quite a complex and irrational thing. Most people search for the holy grail of indicators or they put a bunch if repainting indicators hoping that they may give the perfect entry and exit. Some spend countless hours searching or even paying for indicators that in the end just cost them so much money the easily could have spend on a nice dinner instead. So let's keep it simple with just 3 well known indicators. Following this System you don't need a lot of experience. Just follow its rules and over time you will see your account grow exponentially. The only real thing you need to trade is patience and maybe some time to look and check upon the charts.
Indicators used:
Supply and Demand ( simple support and resistance indicator ) ( custom )
Exponential Moving Average counted at the closing of the candle with a length of 200 ( standard Meta-trader indicator )
S-Stochastic-Trend ( custom and coloured indicator )
Timeframe:
1H or 4H is my personal preference and the timeframe I had the most success with. (if you ask why: Smoothing out the trend and a lot of noise happening on the market )
Although it would function on lower or higher timeframes as well like the 15M or 30M
I don't advise lower timeframes as most indicators tend to give falls signals since the market ( candles ) moves relatively fast and there is not a real confirmation for most indicators. We are patient forex traders and we don't trade binary options so 1H is the best and most efficient timeframe in my opinion.
The indicators in detail ( how you should interpret them )
.) Supply and Demand ( the indicator I am using ) --- However you may use any supply and demand indicator you find online
Colours that signal a buy trade: Green, LimeGreen, OliveDrab,
Colours that signal a sell trade: Indigo, Orchid, Crimson, Red, DarkOrange
"Meta-trader 4 colours"
.) Exponential Moving Average with the period of 200
Once the price of an asset moves above the ema, a strong long ( buying ) trend occurs. We go long ( buy ) but look out for a short ( sell ) opportunity based on the other two indicators.
Once the price of an asset moves below the ema, a strong short ( selling ) trend occurs. We go short ( sell ) but look out for a long ( buy )
opportunity based in the other two indicators.
--- We follow two different EMA principles
1.) we follow the price after a crossing
2.) we trade either towards or away from the 200 EMA
---
.) S-Stochastic Trend
Two regular stochastic lines moving along with the price & either a red or green vertical line appearing after the two stochastic lines have crossed
We enter a trade in the desired direction based on crossings and the vertical lines appearing.
So now that we have explained each indicator individually it is time to explain the whole system
I will do that based on screenshots since it is the most visual and easiest way to describe something.
I hope this systems will help new and experience trades alike.
I will add more indicators and systems to this thread but for now we keep it simple, Once this system has been understood we can add more indicators for lower timeframes or for more confirmation but a need is only those 3 indicators.
Happy trading everyone
Note: indicators can be downloaded for free from multiple sources online but I will add them asap to this thread so no one has to do a lot of research to get the exact ones.
Foreword:
Most systems for trading Forex, Indices, Commodities or even Stocks seems to be quite a complex and irrational thing. Most people search for the holy grail of indicators or they put a bunch if repainting indicators hoping that they may give the perfect entry and exit. Some spend countless hours searching or even paying for indicators that in the end just cost them so much money the easily could have spend on a nice dinner instead. So let's keep it simple with just 3 well known indicators. Following this System you don't need a lot of experience. Just follow its rules and over time you will see your account grow exponentially. The only real thing you need to trade is patience and maybe some time to look and check upon the charts.
Indicators used:
Supply and Demand ( simple support and resistance indicator ) ( custom )
Exponential Moving Average counted at the closing of the candle with a length of 200 ( standard Meta-trader indicator )
S-Stochastic-Trend ( custom and coloured indicator )
Timeframe:
1H or 4H is my personal preference and the timeframe I had the most success with. (if you ask why: Smoothing out the trend and a lot of noise happening on the market )
Although it would function on lower or higher timeframes as well like the 15M or 30M
I don't advise lower timeframes as most indicators tend to give falls signals since the market ( candles ) moves relatively fast and there is not a real confirmation for most indicators. We are patient forex traders and we don't trade binary options so 1H is the best and most efficient timeframe in my opinion.
The indicators in detail ( how you should interpret them )
.) Supply and Demand ( the indicator I am using ) --- However you may use any supply and demand indicator you find online
Colours that signal a buy trade: Green, LimeGreen, OliveDrab,
Colours that signal a sell trade: Indigo, Orchid, Crimson, Red, DarkOrange
"Meta-trader 4 colours"
.) Exponential Moving Average with the period of 200
Once the price of an asset moves above the ema, a strong long ( buying ) trend occurs. We go long ( buy ) but look out for a short ( sell ) opportunity based on the other two indicators.
Once the price of an asset moves below the ema, a strong short ( selling ) trend occurs. We go short ( sell ) but look out for a long ( buy )
opportunity based in the other two indicators.
--- We follow two different EMA principles
1.) we follow the price after a crossing
2.) we trade either towards or away from the 200 EMA
---
.) S-Stochastic Trend
Two regular stochastic lines moving along with the price & either a red or green vertical line appearing after the two stochastic lines have crossed
We enter a trade in the desired direction based on crossings and the vertical lines appearing.
So now that we have explained each indicator individually it is time to explain the whole system
I will do that based on screenshots since it is the most visual and easiest way to describe something.
I hope this systems will help new and experience trades alike.
I will add more indicators and systems to this thread but for now we keep it simple, Once this system has been understood we can add more indicators for lower timeframes or for more confirmation but a need is only those 3 indicators.
Happy trading everyone
Note: indicators can be downloaded for free from multiple sources online but I will add them asap to this thread so no one has to do a lot of research to get the exact ones.
