Hello, my name is Marius and I’m a forex trader for about 3 years. If you are like me you probably tried every forex system out here. Still at the end of the month I found myself losing money like always. Finally one day I decided to make my own trading system as I was so tired of all the systems I’ve tried that didn’t work. This system is very easy to implement and it doesn’t require to stay glued on the monitor all day to wait for a signal. You can check every once in a while to see if conditions are met. Before implementing this system you need to know about Fibonacci’s retracement and pivot points. If you don’t already know Google it because this is beyond the purpose of this article.
Some people use Fibonacci, others use pivot points, moving averages or trend lines. My system is about an efficient combining of all these technical analysis methods.
You will need to setup 2 charts:
1) 1h chart
2) 15 min chart
Signals: 200 ema(1 h or 15 min), 55 ema(1h or 15 min), round numbers(like 1.3200), important pivot points(S1,R1,M1,M2,M3,M4), Fibonacci’s retracement(38%,50%,61.8%)
Any time you find a confluence of at least 3 of the above signals there’s you’re trade.
Stop loss: 20 pips
Target: 40 pips
Example: Let’s say that 200 ema on the 1h chart is at 1.3227, 1.3232 is 50% Fibonacci’s retracement of a previous up move and the M1 reversal pivot point is at 1.3230 and current eur/usd price is 1.3250.
Place a buy order near the confluence (buy 1.3235 sl:1.3215 target:1.3275)
This system is all about finding strong reversal points by implementing different technical analysis methods that traders use.
On a future article i will write more about refining targets using Fibonacci extensions.