Forex Strategy for Beginners “One look”. How simple is it?
A feature of the Forex beginner's “One look” strategy is its simplicity. A trader decides to enter the market in a few moments, just by looking at the chart. Hence the name of this strategy.
The undoubted advantages of the strategy include the minimum time spent on trade, or rather, on the analysis of the market situation. Complex indicators or patterns are not used here. The situation is assessed quickly, after which the trader either waits for new signals from the indicators or opens a deal.
The essence of the strategy “One look”
Trading conditions are as follows:
currency pair - any.
time interval - D1 (daily).
The indicators used are EMA (5), EMA (12) and RSI (21). For an RSI oscillator with a period of 21 in the settings, you need to delete the standard levels 30 and 70 and set the value to 50
Best for trading brokers are suitable - Alpari, RoboForex or Forex4You.
Entrance to the position.
We open a buy deal at the intersection of fast EMA (5) and slower EMA (12) from the bottom up. RSI (21) is above level 50.
We open a deal to sell at the intersection of fast EMA (5) slower EMA (12) from top to bottom. RSI (21) is below the 50 level.
Exit from the transaction is carried out at the repeated intersection of movings (EMA (5) and EMA (12)) or at the intersection of RSI (21) level 50.
Given that this strategy is a daily one, we can say that according to it we follow the daily trend. Moving averages will, as always, be late, but for this particular case we can only do it. Usually movings give an intersection after a long pause, which is a reflection of the development of a new trend.
Example of a One-Look Transaction
05/09/2013 we see a sell signal. Fast EMA (5) crossed the slow EMA (12) from top to bottom, RSI (21) is located below level 50. The latter is not visible immediately, but on the next candle (in a day), so sometimes it is worth waiting to make sure the signal quality.
Open a short position at 1.5360. You can put a trailing stop, but it must be large enough, since we trade on the daily chart (50-100 points).
We are watching the schedule. The price moves down, moving averages do not converge, but follow approximately in parallel. There are no signals to close the position.
The price approaches the level of 1.5100 and begins to move in a certain price range. Fast EMA (5) makes an upward movement, trying to intersect with a slow EMA (12), which indicates a possible trend reversal. It's time to close our position.
We close at 1.5125 (we consider the minimum, it was possible to take more), earning 235 points in net profit.
Now, following the signals according to our strategy, you can open a long position.
Forex strategy for beginners “One look (One look)” will be useful for both beginners and more experienced traders. The small number of transactions is fully compensated by the simplicity, a quick assessment of the market situation, the possibility of using any instrument for trading and, most importantly, a large profit (after all, we trade according to the trend and on the daily chart).