This Trading system is mainly organized by two moving averages and their setting is
9 EMA and 30 LWMA
(EMA=Exponential Moving Averages and LWMA=Linear Weighted Moving Averages).
For accurate trend Identification we also use FX EAGLE Dashboard Indicator but it is optional.
Any timeframe you can use but better H1 and higher .But my experience said D1 is best for this Trading system.
Setting the Chart: For easy setting I already attached my template. Just copy and paste this template on your mt4 and see like this and start market analysis. FX Eagle Dashboard Indicator also need to paste on your indicator folder.
1.First need to see the eagle dashboard if neutral not analysis.
If Buy only search buy entry opportunity. If sell only search sell entry opportunity.
2.Ok, from this we found Buy only mode or
alternatively we can identify that if 9 EMA is up side and 30 LWMA is downside. This phenomenon is called market is uptrend.
3.At the same time we also need the significant space between the two Moving Averages. If no space not analysis. If steeper(Bigger the gap between the 9 EMA and 30 LWMA) that means market is trending. Without significant trend, indicator basis trading failure most of the time.
4.Now we need one trigger candle(Which candle insert the gap space of the two Moving Averages from the upside of 9 EMA line).
5.Just place a buy stop order on the top of the trigger candle.(2/3 pips higher from the trigger candle)
6.Make a stop loss just behind the trigger candle.
If you are a conservative trader also can put it behind the 30LWMA line.
7. For take profit taking we can use trailing stop as equal to stop loss. Even we can use 1:1.5 or 1:2 risk reward ratio.
If you not follow well organized money management system forex trading is never give you constant profit forever.
in the above picture pointer 1 is the invalid trigger candle because next candle again lived in the gap space of the MA. For that current candle is triggered candle. In the meantime, we moved our buy stop from the point 1 to current candle top.
[download id=”5485″ template=”Template “]