Using the Magic Bands Trading Strategy on Daily Charts - best forex trading advice

Using the Magic Bands Trading Strategy on Daily Charts ~ best forex trading advice

The Magic Bands trading strategy can be applied to daily or weekly charts as well as scalping charts.

It needs only a minor change which is not completely necessary. There is another indicator called the ribbon which adds a bit of colour to the chart as well as denoting momentum. The ribbon expands as momentum builds and that may be useful for some traders as they inspect their charts to look for entries.

The chart may also be enhanced by the Gator oscillator which shows the momentum, that is optional and is not necessary to use this trading system effectively.

Of course, on a longer chart a person will want to include a trailing stop as the position may last for several days or weeks as shown in the USDJPY chart below. You can see that the long entry lasted for several weeks.

Here is a chart of the Dax Index and on it you can see some great entries as that index has been climbing steadily for several months until this past summer. Once again this simple trading strategy has been able to bring significant profits with a minimum of maintenance to the portfolio.

There are many Forex pairs and Stocks and Indexes that have long trends and are quite well suited to this trading strategy. It requires only a few minutes a day to review a sizable portfolio to do what ever maintenance and entries are required.

To locate instruments that may be suitable for this type of system a person needs only do a scan for trending stocks or currency pairs and there are many to choose from. Probably those with some volatility would appeal to many investors.

The indicator settings  can be found on this page Magic Bands Scalp Trading Strategy along with some other information.

One more chart that I have here for you to glance at is that of Sweet Light Crude, you can easily see that a trend following  strategy would have reaped excellent profits in the past eighteen months.

Be sure to use a trailing stop with this system as the markets are completely unpredictable.

Good Trading..!

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Divergence Trading Strategy With Renko Bars and The Awesome Oscillator - best forex trading courses uk

Divergence Trading Strategy With Renko Bars and The Awesome Oscillator ~ best forex trading courses uk

This Renko Divergence Trading Strategy is most simple!

We are going to use a Renko Chart and the Awesome Oscillator to demonstrate this Trading Strategy as shown in this chart.

As you can see this chart has only the Awesome Oscillator and Renko bars, a simple setup.

About the Awesome Oscillator.

This indicator is designed to reflect market momentum, that is , the speed of the price moving higher or lower. How it measures momentum is by subtracting the difference between the midpoints of the 34 simple moving average and the 5 moving average and plotting the difference as a histogram. The bars in the histogram are colored, red and green. The reason for the coloring is to illustrate increasing and decreasing momentum
.
There is a lot of information to be gleaned from the behavior of this oscillator.
It can confirm the current trend. As it crosses the zero line it indicates the trend changing direction.
It can point out a divergence between the oscillator histogram and the price.
It is also used by some traders in their Elliot Wave Analysis.
For purposes of our discussion we will limit to how to use this indicator to detect divergences.
And we are going to discuss Regular Divergences, bullish and bearish.

In order to detect divergences we have to observe the price bars and the oscillator. We have to pay particular attention to Higher Highs and Lower Lows.
Each time the price makes a higher high or a lower low, we have to see what happened with the Oscillator – did it make a higher high or a lower low.

Bearish Regular Divergence

Let us assume that price has made a higher high and that the oscillator has made a lower high. That is a tip that momentum has decreased and a warning that price may start to decline.
We draw a line on each connecting the tops.
Indeed the price may be starting to decline, we will wait for entry until the oscillator histogram crosses the zero line before entering a trade.
Our trade may be short lived for the reason that the trend on higher time frames may be bullish and this divergence is merely a retrace. We can re-enter, if such is the case, as the histogram crosses the zero line upwards.

In the picture you can see the lines drawn on the price bars and on the histogram. You can also see that this entry would have been unproductive as price was wandering without direction.

Bullish Regular Divergence

This kind of divergence is similar to the bullish except we will be observing the lows of the oscillator and the price bars.
We will draw lines connecting the lows and watch for a discrepancy.

You can see in this picture  the lines connecting the bottoms and the divergence between the price lows and the histogram lows.
Of interest is the change in momentum shown by the decreasing lengths of the bars in the histogram, We can see that the momentum in the downtrend is decreasing as price slows its bearish thrust.

Definitely use a stop loss with this type of trade,we never can be sure as to what the market is going to present as soon as a trade is entered, we have to protect our account.
Some traders endure many small losses as their stops are often hit and then they score well on a huge move.

That gives the basics of the Renko Awesome Oscillator Trading Strategy.

These setups occur on every instrument almost every day, we just have to have a few charts open and observe the higher highs and lower lows to earn an excellent income.

Enjoy!

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Bank of Canada Clobbers the Loonie With a Rate Drop - forex academy trading 212

Bank of Canada Clobbers the Loonie With a Rate Drop ~ forex academy trading 212

This chart shows the US Dollar rising dramatically against the Canadian Dollar as The Bank of Canada announces a rate drop of 0.75 per cent.

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DAY TRADING FOREX WITH CCI INDICATOR - live forex trading advice

DAY TRADING FOREX WITH CCI INDICATOR ~ live forex trading advice

LONG TRADING SETUP

1. 14-period CCI moves above 100
2. At least one bar closes down (retracement)
3. Enter one tick above bull trend bar

If CCI falls below -100 at any point, the trading setup is void.

SHORT TRADING SETUP

1. 14-period CCI moves below -100
2. At least one bar closes up (retracement)
3. Enter one tick below bear trend bar

If CCI rises above 100 at any point, the trading setup is void.

WINNING TRADE – SHORT CCI DAY TRADE

This is a 30-minute chart of 6E futures contract.

1. CCI fell below -100 line and set the stage for short trades.
2. This bar closed up as the first sign of retracement. We went on high alert for a bear trend bar as a signal bar.
3. This small bar could have been our trigger but price did not go below it to trigger our sell stop order. Instead, we went short at bearish inside bar (red arrow).

LOSING TRADE – LONG CCI DAY TRADE

This trade actually worked, if not for the outside bar that whipsawed us out of our position.

1. CCI went above 100.
2. Prices retraced down for two bars before giving us a bull trend bar for entry. However, right after we entered the long trade, an outside bar stopped us out by one tick. (As always, we placed our stop-loss a tick below the signal bar.)
3. Long trading setups that allow us to enter below the high of the CCI break-out bar tend to work better. The reverse is true for short trades.

CONCLUSION – DAY TRADING WITH CCI

This simple trading strategy uses CCI to find momentum before we trade along with it. Waiting forretracement before entering the trade works well to avoid whipsaws.

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