Forex Trading Strategy can be really difficult to develop, especially if you do not know what you are doing. What I provided in this article is a simple strategy that can be very helpful for those who are struggling in forex trading.
This strategy is based on the fast moving averages. Therefore it is very easy to follow. We will use the 1 hour or 15 minute time chart to do our trading. This strategy works on any currency pair, but works best in USD/JPY.
The indicators needed for this system is: 10 EMA, 25 EMA, 50 EMA
You can plot this indicator on your chart, preferably different colors each. When you have plotted, look for when the 10 EMA crosses over the 25 EMA and it continues to crossover the 50 EMA. When this happen, get ready to buy or sell in the direction of the 10 EMA. Enter the market according to the direction of the 10 EMA when it has clearly gone through the 50 EMA. It is advisable to wait for the next bar to close, this will help to avoid false signal.
To exit the market, wait until the 10 EMA touches the 50 EMA. And again it is better to wait the next bar closes first.
The good thing about this strategy is that it is easy to follow, perfect for beginners and it gives a very good result, especially if the market is trending, during big breakouts and big price moves. But make sure you do not use this strategy when the market trades sideways.
This is a very simple forex trading strategy to follow and will likely to improve your trading results. If you are looking for an easier way to trade, and perfect for beginners and experienced traders alike, then I suggest looking at the Forex Funnel, my most profitable trading strategy is inspired by this system. You can learn a lot by observing an automated trading system trades. You can learn more about Forex Funnel and read a review made by a real user, just click here.
Article Source: http://EzineArticles.com/?expert=Dylan_Jonathan
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