I wanted to let you know about a very profitable and easy forex trade. I want to let you know how I am trading it.
You only use a 5 minute chart with this trade and it works with the GBPUSD, EURUSD, and USDCHF pairs. I trade this
from 6 am MST to 8:30 am MST (8 am to 10:30 am EST).
I turn on my computer about 6 am. I bring up my 5 minute charts using my forex platform.
I then look for any news items coming out that day.
I use the forex factory website for news reports : http://www.forexfactory.com/?page=calendar
If news is coming out at 6:30 I try to get my trades in before then. The only indicator is price with this trade. I look for a high or low near 6:00 and set a buy and sell stop 30 pips away. Set a regular stop of 20 pips and a
limit of 40 pips. Sometimes a high or low may present itself between 6 and 6:30. Adjust it accordingly if you wish.
News may take you into the trade quicker so set your buy and sell stop before 6:30 am MST. When price takes you into the trade, delete your opposing stop. If a buy stop gets you into the trade, then you would cancel your sell stop.
Once you are in the trade, for every 10 pips of profit you make, move your stop 10 pips. This will help you manage the trades and have few and small losses. If you are still in the trade after hours, move your stops to breakeven or take your pips.
This works in a trending market. I have not tested with the GBPJPY but I believe this might be the best pair to trade this system with because it does trend alot.
I have a power point slide on this, but don't know how to put it in here.
You only use a 5 minute chart with this trade and it works with the GBPUSD, EURUSD, and USDCHF pairs. I trade this
from 6 am MST to 8:30 am MST (8 am to 10:30 am EST).
I turn on my computer about 6 am. I bring up my 5 minute charts using my forex platform.
I then look for any news items coming out that day.
I use the forex factory website for news reports : http://www.forexfactory.com/?page=calendar
If news is coming out at 6:30 I try to get my trades in before then. The only indicator is price with this trade. I look for a high or low near 6:00 and set a buy and sell stop 30 pips away. Set a regular stop of 20 pips and a
limit of 40 pips. Sometimes a high or low may present itself between 6 and 6:30. Adjust it accordingly if you wish.
News may take you into the trade quicker so set your buy and sell stop before 6:30 am MST. When price takes you into the trade, delete your opposing stop. If a buy stop gets you into the trade, then you would cancel your sell stop.
Once you are in the trade, for every 10 pips of profit you make, move your stop 10 pips. This will help you manage the trades and have few and small losses. If you are still in the trade after hours, move your stops to breakeven or take your pips.
This works in a trending market. I have not tested with the GBPJPY but I believe this might be the best pair to trade this system with because it does trend alot.
I have a power point slide on this, but don't know how to put it in here.
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