Trading Strategies

Collection of custom forex trading strategies. Read our detailed strategy review and set ups.

Improved Bollinger Band Bounce Set ups

Improved Bollinger Band Bounce Set ups

Trading Strategies
Improved Bollinger Band bounce method can help you filter the trades using making the popular Bollinger Band Bounce trading set up into a really powerful trading strategy. Bollinger Bands are used for identifying both trends as well as volatility. There are many trading strategies based around Bollinger Bands, but they all fall into either walking the bands methods, which is a trend following strategy or a Bollinger Band bounce set up, which trades the pullbacks. Bollinger band bounce set ups work on the principle that when prices bounce off either the upper or the lower Bollinger Bands, prices tend to retrace or move in the opposite direction. But it begs the question as to what happens when a Bollinger Band Bounce set up fails? Of course, using stops here to cut the losers quickly...
How to trade breakouts with Median lines

How to trade breakouts with Median lines

Trading Strategies
Median line, also known as Andrews' Pitchfork tool is a great tool to help in your trading, especially if you are a price action aficionado. Median lines are nothing but trend lines which are divided into two parts and can offer some unique insights when applied correctly. Although Median line trading is easy, it takes a bit of time and practice to correctly figure out where to trade and more importantly how to trade. There are many articles on the web that will introduce you to median lines or Andrews' pitchfork. Therefore, this article will not go into the details of the basics but in fact introduces you to a unique way to trade with median lines. Step 1: Plotting median lines correctly Median lines are plotted using a low - high - low on a consecutive pattern, which usually results...
Simple tricks to trade with pivot points more effectively

Simple tricks to trade with pivot points more effectively

Trading Strategies
While pivot point trading strategy is commonly used, there are risks involved nonetheless. These simple ticks can help you to reduce the likelihood of a trade going against you and thus increase your trade probability. There are many pivot point trading strategies which combines either price action or technical indicators. However, in reality trading with pivot points can be a bit risky as prices tend to respect the pivot levels only some of the times. No matter how well you combine the technical indicators, pivot point trading can be a bit risky. However, this simple trick can help you to identify potential reversal levels and trade more effectively. Pivot Reversals The pivot reversal method is based on the simple rule that broken support is often tested for resistance and vice versa...
Identify trends correctly with the 4-week rule

Identify trends correctly with the 4-week rule

Trading Strategies
Trends in the currency markets are one of the most important and basic elements to trading. Incorrect recognition or interpretation of trends can have a devastating effect on traders. Like a slow moving trading, the equity can be easily depleted without knowing what happened until the last dollar disappears from your trading capital. Trends, however seem to carry an element of subjectivity and are well represented by the many confusing articles that seem to claim to be the authority on trends. So how does one define a trend and why is it important to figure out the trend first? Why you need a trend (when trading) A trend is defined as “a general direction in which something is developing or changing”. In the context of the currency markets, trends are nothing but the general direction in
Parabolic SAR and Stochastics MTF Trading System

Parabolic SAR and Stochastics MTF Trading System

Trading Strategies
The Parabolic SAR is a versatile trading indicator which can be effectively used as a trailing stop indicator. It forms a kind of trend following strategy and works best when markets are in a strong trending mode. When combined with the Stochastics oscillator, which basically oscillate between overbought and oversold conditions, thus representing rising and falling momentum, the Parabolic SAR and Stochastics trading system can make for a very unique trading system in itself. This unique approach is further enhanced with a contrarian approach of using multiple time frames. Using the well known approach of using a higher time frame to determine trends, the MTF approach is rather simple. Parabolic SAR and Stochastics Chart Set ups The chart set up is very simple and the Parabolic SAR as ...