I have been away from forex trading for awhile due to substantial losses and time constraints. My very first thread start here. As I have a full time job, I cannot be near a computer all the time and cannot continually watch the charts. Today, I generally trade with the trend and have developed a set of indicators that has been working. Thanks to TK5, Nihilist, Fartist, Hitman and Ferrux along with all the others who patiently post answers to repeated questions and are very kind souls looking to assist others in making a few dollars. Since I do work full time, I am by no means an expert in forex, but I have spent many hours scouring and searching for something that works. I just cannot deal with far too many indicators, as I think too many just adds to confusion and indecision. As it is, I think my template may be a little much, but I'm sure all of us has seen the Christmas tree templates and wonder if you should trade if there's a blue dot next to a red one. Check the excellent thread by TK5 which I patterned this template from for further simplicity. But, since I'm away or on the road, I need to use at least a 4 hour time frame, and that's generally what i base my trades off of. Not to say that when I have more time, I won't go to a lower time frame, but I find time frames from 15 on down to be too much chatter.
I was able to modify another indicator, the BK10 to a 5MA that has arrow alerts. Note that where the chart shows the arrow that the arrow appears AFTER the close of that time frame. If the pair closed below the 5 MA, the arrow shows that it did. If it closed above the 5MA, it shows that it did. So, in a visual back test, use the entry of the following candle as where you could potentially enter a trade.
I use the 20 MA as an additional guide and you can see that if the pair moves above or below the 20, it is usually a good trade. In this manner, you are following the price action, and I do not (generally) take trades against the current trend. It's easy to just switch to the higher time frame to identify the trend, and I recommend that be done. I do have the Hitman indicator on the chart for an easy look on the overall trend.
Test it out and see if it works for you.
I was able to modify another indicator, the BK10 to a 5MA that has arrow alerts. Note that where the chart shows the arrow that the arrow appears AFTER the close of that time frame. If the pair closed below the 5 MA, the arrow shows that it did. If it closed above the 5MA, it shows that it did. So, in a visual back test, use the entry of the following candle as where you could potentially enter a trade.
I use the 20 MA as an additional guide and you can see that if the pair moves above or below the 20, it is usually a good trade. In this manner, you are following the price action, and I do not (generally) take trades against the current trend. It's easy to just switch to the higher time frame to identify the trend, and I recommend that be done. I do have the Hitman indicator on the chart for an easy look on the overall trend.
Test it out and see if it works for you.
