When price pushed into that area sell orders triggered and buyers could no longer continue up. The moment we see the histogram fall again and the Stochastic reach the overbought area; we need to wait for the candlestick that created this condition to close. In few minutes, you would see miracles happening before your eyes and all that you would think of is: The same is true for the ability to select separate files for buy and sell signals. But first, we need to define some rules for support and resistance areas. MetaTrader 5 — Trading Systems. Instead, it would only be 20 pips away from entry point.
FREE FOREX TRADING STRATEGIES. When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies.
Follow the Trend
These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups. My trading strategy differs from most courses you will come across as it is based entirely on Price Action…. My Forex price action strategy was born in and has been constantly improved over the last 12 years — this strategy has seen it all.
It has survived major market changes from the financial crisis in to the Swiss Franc disaster in , to Brexit in It really has seen it all. From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits. Indicator based strategies work well in specific market conditions. If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions. In fact, my Forex trading strategy is so simple that you can trade it from your smartphone.
My Forex trading strategy was created with simplicity in mind. The core rule of my price action strategy is to keep trading simple. Because the Forex trading strategies that work best are simple. The only thing I place on my charts is support and resistance areas. I use these support and resistance areas in conjunction with candlestick analysis to trade Forex.
This chart is uncluttered, easy to understand and to navigate, with nothing to distract you from analysing price action. This style of trading is quick, efficient, stress-free, and you can do it from anywhere, including your smartphone.
Support and resistance areas show you where to buy and sell, they are a vital part of every traders toolkit, and it is essential that you learn how to place them. Support and resistance areas divide your chart up into buy and sell areas. An area that sits above current price is a sell area, any area below current price is a buy area. The terms buyers and bulls are interchangeable.
Support is a buy area as buyers are found at support. The terms sellers and bears are interchangeable. Resistance is a sell area as sellers are found at resistance. This is a strong resistance sell area. When price approaches a sell area large amounts of sell orders are triggered countering buy orders. This usually results in price stalling or even turning around completely for a reversal. They place their entry orders at significant price levels.
Significant levels come in many forms. The next time it approaches the level it pulls back again and then again two more times yellow highlights. Because market movers place their buy orders at the 1. This is how markets work, buy and sell orders are grouped together in the same general area and when they are hit we see the impact on price.
There are a lot of indicators out there that claim to give you great support and resistance areas. Support and resistance placements still need to be done by a person.
These are my support and resistance areas , but if you want to trade more pairs you will need to place them yourself. I am going to break it down into a step by step process for you though. But first, we need to define some rules for support and resistance areas. Select a daily chart and zoom out until you see around one year of data.
Identify the highest and lowest bounces in the last year and place an area at each. Remember, place your areas at the bodies, not the wicks and as these are yearly highs and lows placing them based on a single bounce is enough. Place support and resistance areas between the first two by connecting areas which have two or more bounces.
You will generally find that there are support and resistance areas on most charts. If you have more than 8 you probably placed too many. Well the standard approach to candlestick analysis is basic pattern recognition, which fails to work in real trading.
I delve much deeper than that, I look at the story behind the candle and in this chapter I will show you how to do that too. You can read up on the basics here if you need to. Each pattern has a set in stone definition and that is the only meaning it can have. Actually, it is worse than useless. Thinking about candles as just patterns is counterproductive. It makes you a worse trader, it leads you to make massive mistakes.
Giving a pattern a set definition leads to tunnel vision. When you see that specific pattern, you assume that something will happen.
All candlesticks need to be assessed based on the candlesticks around them, and many other factors. Normally people say that a spinning top means a reversal is imminent, which can be true. However, this same pattern can also mean that a continuation is imminent. It can mean that price is temporarily stalling.
Every single candle on your chart is telling you a story. When you combine those candles together, you get the story of price. Reading and understanding the story of price is vital in Forex.
It is vital because it allows you to answer one of the most important questions in trading…. Being able to accurately answer this question is vital.
If you are about to enter a short trade and you ask yourself. If you look at the three highlighted candles below, it is easy to conclude that sellers are in control of price. The candles all closed lower than they opened, they all created new lows beyond the previous candles low and they all had small upper wicks in comparison to the candle body. The small upper wicks indicate that buyers were unable to push price up by much.
It has a short upper wick, a small body, and a long lower wick. This is what I call an indecision candle. Indecision candles occur when neither buyers or sellers can gain and maintain control of price. They are common, but if used in the right way, they can be very powerful. Take a look at this bullish trend yellow highlight , it is a strong trend, there are several bullish candles heading towards an area of resistance.
The big bullish candles tell us that during the highlighted period buyers were in complete control of price. Large Upper Wick Blue Highlight A large upper wick shows that buyers tried to continue the bullish trend but failed. Sellers took control of price and pushed it down. Small Bearish Body Green Highlight The small bearish body shows that sellers were able to close lower than the open.
This is significant because in the three candles before this price consistently closed higher than open. This shows us that buyers are losing power. Small Lower Wick Red Highlight The small lower wick shows us that sellers were not able to gain much ground either.
This tells us that sellers are not strong enough to turn price around completely. However, they are strong enough to stall further buyer movement.
All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish buyer market to an undecided market. While sellers are not in control, neither are buyers. If you remember, in the previous chapter we talked about resistance being a sell area and support being a buy area. So the image above shows us three strong bullish candles heading into a resistance area.
This tells us that the sell area is working. When price pushed into that area sell orders triggered and buyers could no longer continue up. Johny May 3, at 7: Thank you very much Nial. Izu February 22, at 7: Like always, your articles are inspiring and helpful.
Nader January 15, at 2: Thank for your informative articles here. The lesson is very useful thank you Reply. Eve November 16, at 4: Damn good obvious article! Shahzad Ahmad August 31, at 7: Great job you are doing, In real it is virtue.. Allah Bless You… Reply. August 31, at 3: Been interested in forex and this article will certainly be of help. Tim DeBoda August 30, at Mide August 24, at 7: Dave August 14, at 5: Sandile T August 9, at 1: Amira August 8, at 6: Nazmul Haque August 8, at 5: Nice article Nial, very helpful for me.
JUbaer August 6, at 6: One of the Great Article. August 6, at 1: Gary Clarke August 6, at Isabel August 5, at Mohamed Khaled August 5, at 2: Prashant Joshi August 4, at Self-Control is the key to success. Frankanto August 4, at 2: May Almighty God continue to bless you for being a blessing to my life and my trading career.
Just reading your news letters have turned me around in trading!!!!! Anton August 3, at Thanks Nial, a briliant lesson as always. Rizwan Suleman August 3, at 8: Chedec August 3, at 5: I like this article very much, inspire me a lot.
Rushabh Shastri August 3, at 4: John French August 3, at 1: Nial, I just spent I will be following you for some time to come. Best regards, John French Reply. Geetha August 3, at 6: Stan August 3, at 2: Hi Nial, Very good article! Have a good weekend! Paul Gukiina August 2, at GAB August 2, at Yuriy August 2, at 9: Fully agree with you.
Felix August 2, at 9: Trade less, observe more, Patience. Gabriel August 2, at 8: Karl August 2, at 7: The lifetime of an obtained signal is also relatively short, since the system is meant for intraday trading.
The first objective of the article is to describe the development of the '' trading strategy signal module using MQL5 language. Then, we are going to connect this module to the slightly edited version of the basic trading robot developed in the previous article of the series.
Besides, we are going to use the very same module for the development of an indicator for manual trading. As already said, the code provided in the article series is aimed mainly at slightly advanced novice programmers. Therefore, besides its main objective, the code is designed to help move from the procedural programming to the object-oriented one. The code will not feature classes. Instead, it will fully implement structures that are easier to master.
Yet another objective of the article is to develop tools allowing us to check if the strategy is still viable today, since Raschke and Connors used the market behavior at the end of the last century when creating it. A few EA tests based on the up-to-date history data are presented at the end of the article. The authors name George Taylor's The Taylor Trading Technique , as well as Steve Moore's works on the computer analysis of futures markets and Derek Gipson's trading experience as theoretical basis for their own work.
The essence of the trading strategy can be briefly described as follows: The previous day's Open and Close prices should locate close to the range borders. The reversal should start the current day not before the previous day's candle is closed. The strategy rules for buying are as follows:.
Sell entry rules are similar, but the yesterday's bar should be bullish, a buy order should be located at the upper border of the bar, while StopLoss should be placed at the today's High. Yet another important detail is a size of a closed daily bar. According to Linda Raschke, it should be large enough - more than the average size of daily bars. However, she does not specify how many history days should be taken into consideration when calculating the average daily range.
We should also keep in mind that the TS is designed exclusively for intraday trading — examples shown in the book use M15 charts. The signal block and the indicator making a layout according to the strategy are described below. You can also see a few screenshots with the indicator operation results. They clearly illustrate patterns corresponding to the system rules and trading levels linked to the patterns.
The pattern analysis should result in placing a buy pending order. Appropriate trading levels are better seen on M1 timeframe:. Let's add Take Profit level calculation to illustrate adding new options to a custom TS.
There is no such a level in the original version as only a trailing stop is used to close a position. All levels are received via links to the variables passed to the function, while the signal's return status uses the list of options from the previous article:.
In order to detect a signal, we need to analyze the last two bars of D1 timeframe. Let's start from the first one — if it does not meet the TS criteria, there is no need to check the second bar. There are two criteria:. If these conditions are met, High and Low prices should be saved for further use. Since the first bar parameters do not change within the entire day, there is no point in checking them at each function call. Let's store them in static variables:.
Listing of the function for defining the average bar range within the specified number of bars on the specified timeframe beginning from the specified time function:. As soon as the level is reached, a signal for placing a pending order appears:. The full listing is attached below. Just like the EA, the indicator is to use the signal module described above. The indicator should inform a trader on receiving a pending order placement signal and provide the calculated levels — order placement, Take Profit and Stop Loss levels.
A user can select a notification method — a standard pop-up window, email alert or push notification. It is possible to choose all at once or any combination you like. Another indicator objective is a trading history layout according to '' TS. The indicator is to highlight daily bars corresponding to the system criteria and plot calculated trading levels. The level lines display how the situation evolved over time.
For more clarity, let's do as follows: When the pending order is activated, its line is replaced with Take Profit and Stop Loss lines. These lines are interrupted when the price touches one of them the order is closed. This layout makes it easier to evaluate the efficiency of the trading system rules and define what can be improved. Let's start with declaring the buffers and their display parameters. Their color depends on the trading direction.
The first step to trading with an ‘80/20 mindset’ is to master a simple trading strategy like the price action strategies I teach in my trading courses. As I said earlier, if you do this it will give you the foundation you need to focus more of your time on the real “money makers” in trading, which are money management and your own. Recommended Article: Forex StochCandle RSI Trading System (The Most Reliable and Successful Simple Forex Trading Strategy) We want at least one of the averages to be above level 3. FOREX TRADING STRATEGIES. 80 Forex stategies - Hidden Forex Market Trade The Forex Market With A Hidden Secrets Strategies. Please pour over the 80 forex currency trading strategy items on the checklist below. that the big dogs use. You'll be glad you did.