Last time I mentioned how Forex traders can trade both the trend and range Forex market using just one single Forex strategy. Normally there are some things on which Forex traders have to fix a watchful eye.
1.In fast moving market situations (when the signal confirm after one or two long candles) wait till the price bounce back to correctional level of % 23 Fibo and then enter the trade.
2. Most reliable signal confirms when the RSI running above / below 50 line when you go for a Long / Short.
3. A break of RSI Trend Line confirms when the second candle opens on the suggested direction.
4.Don’t ever take the trade unless the second bar opens Above / Below MACD zero line for a Long / Short trade while the MACD signal line will just give you an in advance alert to be ready for the trade.
5. Once again, the crossover of MACD Value and the Signal Line will warn of a potential trade but don’t ever take it unless you have your own reasonable reasons to do that.
6. Don’t ever take second trade of LONG / SHORT in line with the first trade order type unless a FRESH signal of aforementioned conditions confirm to trade.
8. Don’t ever risk more than 5% of your account balance unless you have your reasonable money management rules that suite you.
9. Avoid the side markets by observing a narrowed Bollinger Bands or flat RSI line.
10. Place the Stop Loss 10 pips above / below of bearish / bullish Parabolic SAR first appeared dot or 10 pips Above / Below the current Resistance (R2) / (S2) Support levels.
11. Most of the false signals come when you trade against the major trend of the market. To know how to define the major trend use bigger time frame like daily or even weekly chart and apply the same setup on that chart to know what is probably the right direction of the market. Sometimes when the price touch the 55 EMA line react as a support or resistance level and at the same time you may have a trading signal against this fact. In this case you are probably against the major trend.
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