EURGPB RUNNING BUY TRADE

The EURGPB buy trade earlier disscussed,the trade is running in profit. It has hit the first target with
49 pips, Exit the trade finally when the 10 ema channel crosses above the Tma  central line

EURGPB TRIGGERED BUY TRADE

As discussed yesterday about the impending eurgpb  buy trade,.from the image above,the buy trade was trigered at 8.am this morning,So the stoploss is expected to be placed at the lowest swing.Take profit at target 1 or allow the profit to run untill the 10ema channel crosses the tma cental line uppside

EURGPB BUY SIGNAL

Eurgpb signal is emerging. as has been discussed before note the following conditions for buy trade

1) 200ema is below the Tma lower band

2) 10 ema channel has crossed below the central Tma line.

3) The price action is below the lower Tma band.

The conditions for buy is met, place a buy order when the first bullish candle closes above the 10ema channel.and the macd histogram is above the zero line

Place your stoploss at the highest swing below the lower Tma band.

Target:     Take profit at your discreption

1) when price action hits the upper tma band

2) Allow the trade to run untill the  10ema channel crosses above the central Tma line

Euraud impending sell signal

From the setup above, note the following

1) 200ema is inside the channell which means that the market is range bound and can be traded

2) 10 ema channel has crossed above the central,tma line

3) 5ema has crossed the upper tma band.

4) The setup is qualified for sell

Entry Trigger: place a sell order,when the first bearish candle closes below the 10ema channel and the macd  hitogram is below zero line

place your stoploss at the highest swing above the upper tma.

Ext rules

1) Employ risk reward ratio of 1:3 or

)Take profit at the lower band of tma or

3) Allow the trade to run till  10ema channel cross below the central tma line

Money management is going to be at your dicreption.

Eur/Jpy sell Signal

Looking at the image above, there is  impending sell on Eur/jpy.The condition for sell has been met.

1)  200 ema is above the  upper tma band                                                                               

          2)5 ema has crossed above the upper tma  band                                                                                

          3)      moving average chanell has crossed  above the  4) Wait for the first candle stick to close below the moving average  channel    

                              

       5)      allow the macd histogram to clelow  zero line,place a sell order                                               

                                                                                                                                                                                                                                                     

   

                                                

Buy and sell Rules

From the above setup,we see the following                                                                                                                                                                                                                                                                                                                                                                                                                                      1)  5ema has crossed below,the central Tma line                                                                                                                                                                                                                                                          2) 14 ema channel  has closed below the central Tma line                                                                                                                                                                                                                                            3) 200ema is below the lower tma band,                                                                                                                                                                                                                                                                         4) The stochastic osilliator with 5 3 3 setting is above 50 line.                                                                                                                                                                                                                                                The   buy  condition is fulfilled,then placed a buy order at the close of the first candle stick above 14ema  channel.  place your stopless at the lowest swing. Take profit when 14 ema channel crosses above the central ema line or you use  own discretion.  The sell condition is the opposite of buy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

My 4hour Trading system

This system is a manual trading one  it is more than 90% profitable

Requirement for the System

Time frame    4hr
 Indicators
200ema         Blue
14 smooth ma   high   pink
14 smooth ma    low    pink
5 ema
Tma exe       Red

1. 

Above is the setup for the system
when  200 ema is outside the lower tma band,the trend is upward.when 200ema is outside up tma band,it is a down trend. when 200ema is inside the tma band, it is a flat trend.All the trends can be traded by the syeem.

Trading systems

•Indidual traders develop their trading system to suit their trades.whatever trading system is deployed,discipline with such system will guarrantee success on the long run.Several trading system can be found in www.forexfactory.com

Money management

•Money management is critical in Fx trading.Fx trading is very risky and therefore money management is imperative.without proper money management, you stand the risk of losing all your monies to forex market. It is recommended that you should place trade with 10% of margin per time.Before entering a trade,you decide how much you want to gain or lose

Market order continue

§Buy limit:This the pending order you place at particular price level below the current price,anticipating that price will fall  to such level when the market is in buy mode.

§Sell limit:This the pending order you place at given price level above the current price, anticipating that price will rise to that level when the market is in a sell mode

§Stop order:This the order you place at given price level either buy or sell market such that if the market is going against you,the order is triggered to stop further loses.

Market orders

•Market exution:This  is excuting the market either buy or sell at the current market price.

•Pending order: It is order you place outside the current price anticipating that price will get to certain level either buy or sell.

i.Buy stop:This is the pending order you place at a given price level above the current market price when the market is in a buy mode

ii.Sell stop:This the pending order you placed at a certain market level below the current price when the market is in a sell mode

Resistance and support lines

•Resistance line is an imaginary line that upward price action cannot penetrate.when a resistance line is broken, it turn to a support

•Support  line is an imaginary line which  downward price action cannot break through.When a support line is broken,it turns to a resistance line.

Market Analysis

•Fundamendal Analysis:This market analysis using economic indices such as Gdp,interest rate.inflation,unemployment nonfarm pay roll.These factors can affect the currencies either positively or negatively

•Technical analysis:This is analyzing market using Technical indicators.These indicators can point market strenght and weakness.They can be deployed effectively in entering and exiting trade eg moving averages,schostatic slow,RsI commodity channel index.bolligerband, etc.

•Fundamendal Analysis:This market analysis using economic indices such as Gdp,interest rate.inflation,unemployment nonfarm pay roll.These factors can affect the currencies either positively or negatively

•Technical analysis:This is analyzing market using Technical indicators.These indicators can point market strenght and weakness.They can be deployed effectively in entering and exiting trade eg moving averages,schostatic slow,RsI commodity channel index.bolligerband, etc.

Suppgrt and Ressistance lines

•Resistance line is an imaginary line that upward price action cannot penetrate.when a resistance line is broken, it turn to a support

•Support  line is an imaginary line which  downward price action cannot break through.When a support line is broken,it turns to a resistance line. see diagram above.

Types of Trend

•Uptrend-rising market

•Down trend-falling Market

•Flat trend-ranging market

•

Time Frames

•Fx market is regemented into time frames as follows

•Monthly

•Weekly

•Daily

•4 H

•1H

•15mins

•5mins

1min
This means that each candle stick represent data for the time frame you choose.

How price action is denoted in Fx market

•line chart

•Bar chart

•Candle stick. most traders prefer the use of candle stick.

https://www.mql5.com/en/charts/8547502/usdchf-h1-fxtm-ft
https://www.mql5.com/en/charts/8547568/usdchf-h1-fxtm-ft-global

Concept of Fx Market

•Different Countries have differernt currrencies.What is a legal tender in one country may not be the same in same in another.There is need for exchange.Currencies are traded in pairs.Stronger currencies are paired with weaker currrencies.eg Eur/usd Eur=europian currency,Usd=US currency.The pair is called Fx instrument.You can buy or sell the Pair .currency at the left hand side of the pair is stronger, it is called the base currency.The currency at the right hand of the Quote is weaker,it is the Counterquote currency.If the base currency is strong, you buy the pair.conversely,if the  the counter quote is stronger,you sell the pair.The strength and weaknes of a pair depend on several economic indices

DEFINITIONS

•Margin: The amount of money deposited with your Broker inorder to hold position in Forex market.

•Leverage: The amount given to you by your Broker inorder to hold a position in the forex market.It is expressed in ratio eg 1:25, 1:50;1:100, 1:200,1:500.

•Lot size: It is the fraction of your margin needed to place trade in forex market.•The  the larger the leverage, the the bigger the profit or loss

•Bull Market:it is a market that is Trending up.

•Bear Market: It is market that is trending down ward.

•Spread: It is the difference between ask and bid.

•Pip:Pip is an acronyn.It is a unit change in the last decimal figure of a currency quote

•

INTRODUCTION TO FOREX TRADING

What is Forex

Forex  means forein  exchange.forex market is the most Liquid market in the world.About 1.3$ is traded in forex market daily.

Requirement for Trading forex

•Knowlegde

•Computer

•Strong Internet connection