Simple Way To Trade EURUSD & GBPUSD | Forex Factory

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Simple Way To Trade EURUSD & GBPUSD

  • #1
  • First Post: Edited May 22, 2024 3:21am May 20, 2024 3:13am | Edited May 22, 2024 3:21am
Hello Everyone,

I will be sharing my trading system I'm using to trade EURUSD & GBPUSD though it can be used to trade other instruments but I've limited myself to these two pairs.

Contribution is welcome from everyone but please avoid personal issues or limit them. Abuse or name calling will not be allowed on this thread.

I prefer trading on M15 & M30 charts while monitoring big picture on H1 & H4.

I do not like messing up my chart with too many indicators because that will surely distract me.

I will give details of indicators and settings I am using in the next post.

The best time to trade this strategy is from London open to NY close. I usually avoid Asian session and bank holidays

NB: I've a paid job and I only trade whenever I have free time to do so because of the extra income I get from it
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  • #2
  • May 20, 2024 3:32am May 20, 2024 3:32am
Indicators on the chart are MA and RSI. Details below:
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  • #3
  • May 20, 2024 4:02am May 20, 2024 4:02am
How to simply use this strategy

Long (Buy):
Wait for the candle to move out of the channel (the two lines) and closed above them.

Check if RSI indicator value is above 50. Meaning the red line of RSI must be above the middle level (middle line)

If you are trading on M15, check H1 chart to confirm that the price is above the channel (two MA lines)

Place pending buy (Buy Stop order) at the high of the candle that closes above the channel. Add two or three pips to the price.
If closed candle high is 1.27001 in case of Cable (GBPUSD). Your pending price will be 1.27021

Your SL should be place at the last low of the present chart or below the channel (two MA lines).

Your TP should be between 20pips to 50pips on GBPUSD
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  • #4
  • May 20, 2024 4:14am May 20, 2024 4:14am
Short (Sell):
Wait for the candle to move out of the channel to the down side (the two lines) and closed below them.

Check if RSI indicator value is below 50. Meaning the red line of RSI must be below the middle level (middle line)

If you are trading on M15, check H1 chart to confirm that the price is below the channel (two MA lines)

Place pending Short (Sell Stop order) at the low of the candle that closes below the channel. Add two or three pips to the price.
If closed candle low is 1.25349 in case of Cable (GBPUSD). Your pending price will be 1.25249

Your SL should be place at the last swing high of the present chart or above the channel (two MA lines).

Your TP should be between 20pips to 50pips on GBPUSD
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  • #5
  • May 20, 2024 4:20am May 20, 2024 4:20am
Let me know your feedback if it works for you
  • #6
  • May 20, 2024 5:12am May 20, 2024 5:12am
There's a developing trade on EURSUD M15 but this kind of trade is risky because the trend on H1 is still bullish (price has not move below the channel). I would not place Sell Stop here because the risk is high, I would rather wait for the confirmation on H1 chart than rushing to place the trade
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  • #7
  • May 20, 2024 3:09pm May 20, 2024 3:09pm
There's no good movement on the EURUSD today. I closed the trade with just 5 pips profit. Tomorrow is another day.
  • #8
  • May 20, 2024 3:25pm May 20, 2024 3:25pm
What would be the target. Also you said check 1hr. How would you place your entry? RSI could be above 50 on 15min chart but still below 50 on 1hr.
  • #9
  • May 20, 2024 3:38pm May 20, 2024 3:38pm
Quoting stirmatt
There's no good movement on the EURUSD today. I closed the trade with just 5 pips profit. Tomorrow is another day.
Does this apply to both currency pair. How many times has this strategy worked for you, what's the success rate?
  • #10
  • May 20, 2024 7:10pm May 20, 2024 7:10pm
Quoting stirmatt
Hello Everyone, I will be sharing my trading system I'm using to trade EURUSD & GBPUSD though it can be used to trade other instruments but I've limited myself to these two pairs. Contribution is welcome from everyone but please avoid personal issues or limit them. Abuse or name calling will not be allowed on this thread. I prefer trading on M15 & M30 charts while monitoring big picture on H1 & H4. I do not like messing up my chart with too many indicators because that will surely distract me. I will give details of indicators and settings I am...
Here you go man.
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  • #11
  • May 21, 2024 6:46am May 21, 2024 6:46am
Quoting vinesh1
What would be the target. Also you said check 1hr. How would you place your entry? RSI could be above 50 on 15min chart but still below 50 on 1hr.
I understand your concern but the logic behind it is to be able to avoid fake signals to a large extent. Patience is the key in this strategy and few good moves will be missed because of the confirmation of H1 but it will save us of many fake signal especially in side way market condition.

Wait for all conditions to be met on M15 and then check the trend on H1 by ensure the candle are out of the channel (the two MA lines) and RSI are above 50 if you are planning to go Long or below if you are planning to go Short. You need to wait for it to avoid taking risky trades that will likely end in loss
  • #12
  • May 21, 2024 6:55am May 21, 2024 6:55am
Quoting jblanked
{quote} Here you go man. {image} {image} {file}
Hi Jblanked,

You have made it simple for traders to use though I have the coded one I am using but I do not want people to just be chasing arrows and bells instead of learning the strategy. I will share the with Arrow and Sound if I found enough traders who are interested in the strategy.

That's how my trade platform look like below
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  • #13
  • May 21, 2024 6:59am May 21, 2024 6:59am
Quoting Morovina
{quote} Does this apply to both currency pair. How many times has this strategy worked for you, what's the success rate?
Yes, it applies to all instrument you can find on Metatrader platform.

Successful rate is around 70% especially when you use it on M30 and H1 above but what matter most is how you manage your risk (losing trades)
  • #14
  • May 21, 2024 7:01am May 21, 2024 7:01am
Thanks for sharing the strategy. What platform / broker would you recommend? I am an NQ futures day trader.
  • #15
  • May 21, 2024 7:16am May 21, 2024 7:16am
Quoting TraderRaul
Thanks for sharing the strategy. What platform / broker would you recommend? I am an NQ futures day trader.
I only trade on Metatrader 4 & 5 and I do not know if it will work well on other trading platform. It work with all brokers that offer Metatrader. I am using it on my accounts with FxPro and HFM and with FX prop firms (FTMO and ACG)
  • #16
  • Edited 9:02am May 21, 2024 8:50am | Edited 9:02am
Quoting stirmatt
{quote} I understand your concern but the logic behind it is to be able to avoid fake signals to a large extent. Patience is the key in this strategy and few good moves will be missed because of the confirmation of H1 but it will save us of many fake signal especially in side way market condition. Wait for all conditions to be met on M15 and then check the trend on H1 by ensure the candle are out of the channel (the two MA lines) and RSI are above 50 if you are planning to go Long or below if you are planning to go Short. You need to wait for it...
Still question is what would be your target? I see instances where candles opens below the channels and go for a while before reversing so a target is necessary imo.The reason is say the candle opened below the channel and you missed the first few candles that opened below the channel and now you want to get in how do you enter the market ? i mean it could be the end of the trend and market can reverse.
  • #17
  • May 21, 2024 10:23am May 21, 2024 10:23am
Case in point. One hr candle opened below the channel and closed below the channel. If I took this trade i would have lost
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  • #18
  • May 21, 2024 10:27am May 21, 2024 10:27am
Let use yesterday scenario on EURUSD M15 chart as seen in the attached picture. The first movement below the channel on M15 highlighted with circle was not confirmed on H1 because the candles were still above the channel on H1 and RSI value was not below 50. In this case, it is better to let the opportunity pass because it is risky especially on non trending days.

The better way to place the pending order in this case is marked with red line in the attached picture.

Your profit target on EURUSD M15 should between 20pips and 30pips and move your SL to BE once the trade move in your favour with 10pips. This will limit your risk though it will take you out of some trade prematurely most of the time but there will always be another day to trade.

The aim of this strategy is to safe guard your equity while aiming for profit.
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  • #19
  • May 21, 2024 10:31am May 21, 2024 10:31am
Quoting vinesh1
Case in point. One hr candle opened below the channel and closed below the channel. If I took this trade i would have lost {image}

If you follow the rules below by using pending order instead of market order, you won't be in the trade because the PO will not triggered. You are supposed to place your PO at the low of the red candle plus 2pip and wait for the market to come to you not chasing the market

Short (Sell):
Wait for the candle to move out of the channel to the down side (the two lines) and closed below them.

Check if RSI indicator value is below 50. Meaning the red line of RSI must be below the middle level (middle line)

If you are trading on M15, check H1 chart to confirm that the price is below the channel (two MA lines)

Place pending Short (Sell Stop order) at the low of the candle that closes below the channel. Add two or three pips to the price.
If closed candle low is 1.25349 in case of Cable (GBPUSD). Your pending price will be 1.25249

Your SL should be place at the last swing high of the present chart or above the channel (two MA lines).

Your TP should be between 20pips to 50pips on GBPUSD
  • #20
  • May 21, 2024 10:38am May 21, 2024 10:38am
Quoting stirmatt
{quote} If you follow the rules below by using pending order instead of market order, you won't be in the trade because the PO will not triggered. You are supposed to place your PO at the low of the red candle plus 2pip and wait for the market to come to you not chasing the market Short (Sell): Wait for the candle to move out of the channel to the down side (the two lines) and closed below them. Check if RSI indicator value is below 50. Meaning the red line of RSI must be below the middle level (middle line) If you are trading on M15, check H1 chart...
Pending order are risky in my opinion. I mean say your order gets triggered while you are sleeping and you place all your targets and sl's its vey likely that your target will get missed by a few pips and your SL will be taken out. have had this happen to me several times.
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