4 Hour Forex Trading System - My Exact Set-Up
The only drawback to running a forex blog is that you are constantly being bombarded with lots of questions, and some of the most common questions I receive relate to my 4 hour trading system. So in this first post of 2010 I thought I would share with you my exact trading set-up.
You can find out how I trade this 4 hour system by subscribing to my newsletter if you haven't already done so (simply fill in the form to the right) but I just want to show you what my everyday chart looks like.
I use very few technical indicators, and they are basically as follows:
- EMA (5)
- EMA (20)
- EMA (50)
- EMA (200)
- Supertrend (3,10)
- Smoothed Repulse (5)
The 50 and 200 period EMAs are just there for guidance really, both for determining the long-term trend and for highlighting areas of support and resistance in some instances, and the Supertrend is just used on the daily chart to tell me which way I should be trading.
My typical 4 hour chart looks like the one below, although on this time frame I'm only really interested in the 5 and 20 period EMAs and the Smoothed Repulse indicator. (The other indicators are only on there because I often toggle between the 4 hour and the daily chart).
The main signal comes when the EMAs cross over, and the best signals occur when this event coincides with the Smoothed Repulse crossing through 0 in the same direction. This is exactly what happened yesterday on the GBP/USD pair, as you can see from the chart below.
The Smoothed Repulse indicator isn't an essential aspect of this system. You can simply trade the EMA crossovers if you so wish. However it does help you pinpoint the very best set-ups.
Anyway I hope this answers any questions you may have, and I wish you a Happy New Year.
thank you for this information..
YanıtlaSilıf you earn too money ,you should use forex system..
YanıtlaSilForex Trading Information
YanıtlaSilFOREX — the foreign exchange (currency or forex, or FX) market is the biggest and the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers.
RSI (Relative Strength Index) — indicator that measures of the power of direction price movement by comparing the bullish and bearish portions of the trend.
YanıtlaSilThe Forex Market
YanıtlaSilFor the last three decades Foreign Exchange market, - briefly Forex or FX, had integrated into the world's biggest financial market. The volume of daily transactions is about 1-3 trillion of US dollars. The trading instruments on this market are the currencies of different countries, so the fluctuation of currency's rates allows to gain a real profit.
Of course monetary assets of different countries exchanged since the term money appeared as well as an idea to obtain profit from currency's rates difference. Now it is not a new idea, but the transformation of foreign exchange market to the modern stage with an opportunity to conduct conversional operations of such volumes arose only after an introduction of floating rates regime by the state-members of IMF. Within this regime's framework the rate of one currency to another is defining only by the supply and demand on the market.
Presently Forex market is a global telecommunication network of banks and different financial organizations. It does not have any fixed trading place and time restrictions - the trade starts on Monday morning in New Zealand and closes on Friday evening in USA
The advantages of Forex market are:
Round-the-clock trading access: the ability to trade for 24 hours a day;
Liquidity: the market works with a huge money and gives the customers complete freedom to open or close their position of different volume;
Leverage: an ability to use leverage. It decreases requirements to the sum of the initial deposit (margin trade). So in case you deposit 10 000 USD into your account you'd have an opportunity to work with 1 000 000 USD (leverage 1:100);
Objectivity: no exterior regulated structures, so the currency's rate is establishing in accordance with current supply and demand on the market;
Globality: everyone can become a market participant irrespective to the living place, as trading requires only your skills and Internet access.
At present mostly all the operations on the market are conducting only to obtain profit. With the development of Internet and other means of communication this sector of the financial markets becomes more accessible and attractive for the investors of different levels.