And now, when you already know in general terms how to trade currency properly, we will share with you one interesting strategy. It is based on technical analysis, therefore we’ll immediately warn you about some restrictions: we don’t trade in the last 3 hours of Friday and the first 3 hours of Monday, at the time of the release of statistical data, news and at the time of the flat.
The strategy is based on two indicators that are “merged” into one tool:
- Bollinger Bands. This is a classic channel indicator, the boundaries of which are formed by moving. Moving (MA) – this is the average value of the price for a fixed period of time. There are two options for the strategy for Bollinger Bands: opening a transaction at the moment of breaking the border (the appearance of a strong trend) or at the moment of a rebound towards the reversal (most often the price moves inside the channel).
- Stark Bands. Auxiliary indicator of the channel type, based on the channels of the middle range of Stoller. It differs from Bollinger Bands in a slightly different approach to calculating channel boundaries.
You can use both of these indicators separately (they are among the basic MT4 tools). Or download the template. To install the template in MT4, click “File-Open Data Directory”, copy the template to the Templates folder, transfer the indicator from the archive to the Indicators’ folder in MQL4. After the platform is rebooted, the indicator will appear in the list.
Trading conditions: currency pair – EUR / USD; timeframe – M15 (15 minutes). Settings:
- Bollinger Bands Period = 20.
- Deviation of the Bollinger Bands from the middle of the channel = 2.
- Moving Period = 13.
- ATR Period = 21.
- KATR = 2.0.
- Shift = 0.
Conditions for opening a long position:
- The time interval for trading is the European session, at which moment the most volatility in the currency pair is observed.
- The upper border of Bollinger Bands is located below the upper border of Stark Bands.
- A growing candle breaks the boundaries of both channels. It is advisable that the body of the candle is as long as possible relative to previous candles.
On the next candle, open a deal on a candle for the EUR / USD currency pair with a stop loss of 10-30 points. Option to exit the market: upon reaching 10 points, insure a position at the breakeven level with a stop, close the part and put the remainder with a trailing length of 10 points.
Conditions for opening a short position:
- The time interval for trading is the European session.
- The lower border of the Bollinger Bands is located above the lower border of the Stark Bands.
- A falling candle breaks the boundaries of both channels. It is advisable that the body of the candle be as long as possible relative to previous candles.
Market entry conditions are similar
You will find even more simple interesting strategies in our special section. And if you are not sure that you can master the strategies, we recommend that you familiarize yourself with the LiteForex social trading service, where you can copy the trades of professional successful traders.
Summarize. Currency is the same tool for earning as stocks, oil, gold or other assets. This is not to say which of these tools is better or worse – all of them are great for risk diversification. To start, you do not need a lot of money, for success, it is important to understand the principles of the market, a good selection of the conditions of the strategy, strict adherence to the rules of risk management and constant monitoring of the situation. Do not expect easy money. Constantly improve your knowledge, try to be cold-blooded, do not be afraid of loss and luck will surely smile at you! Good luck with trading!