Trend And Strength (Intra-Day)
Its good to also clear the way for intra-day traders. I will be explaining a better way to fight intra-day whipsaw, catching the trend and trading at the right market strength.
Today 25th November 2009 8:00pm i will be using GBP/USD as a good example
Before you read further please review this risk warning:
“Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.”
TRADING PLAN
CURRENCY PAIR: ANY
INDICATORS: SIMPLE MOVING AVERAGES (20,50 AND 100 PERIODS)
ADX 14 PERIOD
TIME FRAME: 15MIN (SPECIAL THANKS TO PETER BAIN FOR THIS INSIGHT)
SAMPLE PLATFORM: MT4 (FXDD.COM) with this you can check the broker time and adjust with your broker’s time.
SETUP: YOUR CHART SHOULD LOOK LIKE THIS
Every trader knows that the market is all about TREND DIP AND RALLY. The moving averagies will give us the picture of the general intraday trend and i introduce the ADX to help enter the market at a good strength posible to give high probability entries.
UPTREND: This begin when price moves from below the whole of the moving averagies and closes above
DOWNTREND: This begin when price moves from above the whole of the moving averagies and closes below
MARKET GOOD STRENGTH: You have a good strength when the ADX increasies from below the 20 level to above 20 level in an up or down trend. Please note that ADX must be progressively increasing from below 20 to above 20.
ENTRY:
In an uptrend, if ADX is rising and its above 20 at the time of spotting the uptrend, then ur entry is few pips above the closed 15min candle. If ADX was not rising, then wait for it to go below 20level and make increasing value to above 20, then few pips above the 15min candle is your entry for BUY
In an downtrend, if ADX is rising and its above 20 at the time of spotting the downtrend, then ur entry is few pips below the closed 15min candle. If ADX was not rising, then wait for it to go below 20level and make increasing value to above 20, then few pips below the 15min candle is your entry for SELL.
EXIT:
Fibonacci is my good tp and sl tool, you can adopt any other support and resistant tool
By James
Combination Strategies
Simple & straightforward always trumps complex & in-depth, especially where money is concerned 
Locate a pair that’s trending handsomely, or behaving itself, establishing clearly visible footprints & you got potential to make some decent cash.
If you can take a robust Daily chart set up & combine it with easily identifiable intra-day signals, you can more readily manage your trades & team them up with common time zone volume (activity) uptake.
The majority of the days Forex volumes are undertaken during London business hours.
2-3.00am eastern will usually signify a noticeable increase in currency activity & will generally continue into early morning New York business (7-10.00am eastern) before tailing off as the London business day, & the large volume order blocks, fizzles out.
Linking intra-day trades with the above Daily timeframe strategy, as London gears up for business, can offer excellent low risk opportunities on a very consistent basis.
It doesn’t take but a few minutes at end of day, & again first thing in the morning, to scroll through the selection of pairs & identify follow-on trades.
By executing smaller timeframe trades in the direction of the larger timeframe trend, you stack the odds a little more firmly in your corner.
The opportunities are plentiful across the various pairs. This EUR/GBP set up being a classic example:
Daily bars trending up in uniformed manner
Trigger bar trading above the 5sma
RSI above 50
On the shorter timeframe (in this example the 15 minute chart), mark up the chart to focus the London open & ensure any potential trade is executed on the ‘long side’ preferably on or around a breakout of a prior high, or a pullback in line with a confirming price aid, such as a stochastic or rsi hook.
