Hourly forex trading strategy stable profit 40 points

In this training guide, we will look at an hour-long strategy based on the Focus Trend, ProArrows, and MACD Divergence indicators that we told you about earlier. The objective of this strategy is to provide high-quality signals for market entry. For a better understanding of the material you will need to install these indicators and familiarize yourself with them.

 

Today we will look at trade signals over the past month, which will learn about the principles of work and places of entry into the market, as well as about potentially loss-making positions. We 'll figure out when it 's impossible to enter the market, and when it 's risky. I note that you can work on any currency pair, with an interval of Н1.

 

Press the button "study," learn about the best trading methods on the hour time frame.

 

The foreign exchange market operates 24 hours a day, so naturally there is a desire to open deals as often as possible, so the most popular way of trading among beginners is intraday trade. Scalping strategy, especially with a large credit shoulder, can quickly rid itself of the illusion of "fast" money and is replaced by a calmer option such as myforex watch strategies.

 

Before we make recommendations, let 's decide what we will mean by hour trade. Such transactions can be divided into two groups depending on the working time frame:

 

The slots are open for more than 60 minutes, but smaller М15-М30 intervals are used for technical analysis and decision making.

The worker is the timeframe Н1 and further we will give recommendations exactly for forex trading strategy on hour schedules.

 

forex trading strategy requirements for hour-long intra-day trading:

 

Positive result for the last 3-6 months in the real account, and each month should be closed in plus.

Ability to apply basic principles and tools of technical analysis. The experience of news trading will not be unnecessary either.

Psychological stability, ability to make a decision quickly, especially on fixing losses.

Follows the selected risk management system. At the same time, it is necessary to be ready to change the basic parameters of the transaction, if this is required by the strategy on the hour chart when the current market situation changes dramatically.

 

Two Stop Loss Methodology

Like any other hourly strategy requires proper loss management in the first place, potential profits are much easier to calculate. Deals on average open for 3-4 hours, signals appear even less often, so it is necessary to wait long for the result. The losses cause additional stress and a desire at the next entry point to recover the losses. To remove the emotional factor helps the technique of real and subconscious foot:

 

Real (physical) Stop Loss determines the maximum loss based on trading strategy, currency pair, market and expected Take Profit.

Subconscious Stop Loss is a quick close when the trend is reversed, when it is obvious that myforex hour-long strategies have given the wrong direction of position. In this situation, beginners often continue to accumulate losses in the hope of resuming movement, which is what "foot hunters" earn.

 

Remember that the broker and big players have direct access to the warrant flow, and see at what levels the most Stop Loss or loss-making deals. If the strategy for hour timeframes involves too small feet, they can be easily shot down by even a small infusion of volumes in both directions, after which the price quickly returns to the trend line.

 

We choose strategy

The intraday market is quite volatile, so all techniques should be carefully tested on the demo account. Hourly strategies can be divided into three main groups.

 

Trade on a trend

Here is an out-of-competition strategy on the hour chart using moving averages, on which all known traders earned their millions. However, among the tools of technical analysis are among the most lagging, so at least one oscillator is needed to confirm the signal.

 

Break/bounce from significant channel price levels or boundaries

You can trade both horizontal and sloping (trend) price ranges. Practice has shown that the hourly strategy on dynamic channels (corrections, kickbacks) produces better results than single deals from "hard" levels (Pivot Points, past max/min). Usually used in the middle of an active weekly trading system, when an intraday trend has already developed.

 

News and statistics output

Forex 's watch strategies cannot ignore fundamental events when trading inside the day. Even if the local trend continues, news speculative movements can lead to trouble (see double feet). The strong news can determine the direction of movement of the entire hour-long Japanese candle and if correctly reacted, you can make a good profit. In addition, the news trade allows you to work out the skills of working with deferred warrants and check the quality of the broker 's work.

 

The strategy on the hour chart should include an analysis of average daily volatility, which will allow to determine more precisely the moments of entry and exit: if activity has increased, we close at the boundaries of the middle range, if unchanged - it is possible to hold the position until the end of the session or even the day.

 

We choose a trade asset

Classic mani management says that simultaneous trading on several trading instruments should reduce the overall level of risk, but hour strategy, like all intrigue, is an exception to the rule. The desire to trade on everything that is actively moving at the moment destroys the deposit at a rate directly proportional to the number of open positions. Even professionals cannot effectively control more than 2-3 assets at a time. We do not forget that in critical moments it is necessary to make the right decisions quickly!

 

Select one, at most two, asset with average volatility for the last month 40-60 points. It will suffice two deals on each during the day so that the hour-long strategy increases the deposit and keeps nerves. Practice the whole trend with a trailer foot, fix profits in parts to avoid sharp reversals or kickbacks. Do not strive to increase the number of assets, it will not lead to anything good!

 

Trade time

myforex hour-long strategies contain recommendations when to trade best, but you need to remember that big players are working on their own schedule, so every asset has its own behavior inside the trading session. For example, EUR/USD is moving actively in the period 05:00-18:00 UTC, and currency pairs associated with raw materials are "tied" to the schedule of stock exchanges. Consider the next moments:

 

The start and end of sessions are considered to be the start points of Price Action reversal patterns that overlap the previous intraday movement. Make sure that at these moments short-term positions are closed!

Monday 's gap is only being worked out when there is a clear trend towards closure. Most price breaks close during the day, but how long it will take the strategy on the hour charts cannot say. Especially in the morning there are no big players on the market and even a small volume can increase the gap and move the closure to the next day.

 

The same situation on Friday with a shortened trading day. Most try to fix positions without risking opening up on US data, often published on that day. The last session may not be enough to open the opposite transaction to compensate for possible losses!

The strategy for hourly timeframes should calculate the likely price level of open position reversal, which is better made a reverse stop order at the opening point.

 

Even the best strategies on hour charts do not remove mandatory market analysis. Beginners forget about it and seek to get into the trend in the first place, wait for profit and leave by manual closure. Other factors are not taken into account, which on the one hand leads to work on a false signal of the strategy, and on the other not

 

The same situation on Friday with a shortened trading day. Most try to fix positions without risking opening up on US data, often published on that day. The last session may not be enough to open the opposite transaction to compensate for possible losses!

The strategy for hourly timeframes should calculate the likely price level of open position reversal, which is better made a reverse stop order at the opening point.

 

Even the best strategies on hour charts do not remove mandatory market analysis. Beginners forget about it and seek to get into the trend in the first place, wait for profit and leave by manual closure. At the same time, other factors are not taken into account, which on the one hand leads to work on the false signal of the strategy, and on the other hand the lack of profit, as the experienced trader who owns the analysis can quietly wait for the calculated Take Profit.

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