FOREX SIMPLE STRATEGY PART 2
In this post we want to show you how to learn this Forex simple strategy. Not only will you learn it you will also be internalizing the strategy and making it a part of your trading skill set.
So you can watch the following video as well as read the rest of this blog post to get the concept of how to learn this Forex simple strategy and any other strategy you are wanting to learn.
To get the setup for this simple strategy go to forexstrategysecrets.com sign up for the free webinar and you will be sent the setup instruction for the Jump Start simple trading strategy.
We use three time frames to work the strategy the four hour, the one hour, and the 30 minute time frames.
What you’re looking for is when the MAO, that is the bottom oscillator, crosses the zero line, either going above or below the zero line.
First find the direction you’re going to be trading using the four hour time frame. You take the anchor and put it on the right-hand side of the chart and then you go back in time where you don’t know which way the charts are going to move. Then you practice hitting the F12 key, which moves the chart 1 bar at a time.
You’re looking for the area where the MAO crosses above or below zero line so you can determine which direction you’re going to be trading. Once this comes easy for you to wait until the line crosses the zero line then you can start using the other time frames to find trades to enter.
So you first look on the four hour chart find the place where the MAO crosses above or below the zero line. When you get a fresh cross and you mark a vertical line at that point.
Now you go to the one hour chart and see if it confirms with the one hour MAO being on the right side of the zero line. If the one hour is on the same side of the zero line as the four hour chart then you go to the 30 minute time frame to find an entry where the 30 minute has a fresh cross on the MAO in the same direction the four hour chart was going.
This will give you a high probability entry set up you draw a horizontal line marking the place where you would enter the trade then you go to the one hour chart to manage the trade.
What we mean by managing the trade is your waiting for the moving averages, or the hotlines, to cross going the other direction this will be your exit signal. At this point you put another horizontal line where you would be exiting the trade you calculate whether it is a winning trade or losing trade and record on a piece of paper the number of pips won or lost.
Once you get used to using this method of finding high probability trades in the simulated trading exercise you will be able to find many trades in 15 to 30 minutes a day.
When you feel you’re proficient at doing the simulated trading you may then move on to demo trading. Take as many demo trades as you can on as many different currency pairs when you find the proper setup.
What you have completed 20 trades calculate your win loss ratio to see how you’re doing. Do this 20 trade exercise 3 to 4 times that would be 60 to 80 trades. By the time you complete this exercise you should have a good understanding of how to find high probability trades. You are the point now where you can decide if you feel comfortable moving on to live trading.
You can use the same method of simulated trading to learn any strategy. The advantage of doing simulated trading is you get a lot of experience in a short period of time with little stress and emotion, you become a mechanical trader.
Be sure and watch the video as many times as necessary make sure you understand how to do simulated trading. We find that are most successful students do simulated trading on a regular basis. Posted music struggle bypass this step it takes a lot longer to grasp any trading concept there trying to learn.
The key here is to discipline yourself to gain trading skills so you can put them into action in a short period time.