One of the best forex trading strategy designed around the London Close Trading Session. The forex entry points of this strategy is impeccable
See detailed forex trades here of these results: Out of 647 total trades, 594 winners, 32 break even & 21 Losers. That's a 92% winning ratio.
Forex Entry Point Strategy
*Important tip: If you get your forex entry point right, then you have taken care of the hard part of your trade. So focus on your forex entry point.
Importance of Forex Entry Point
In any high probability forex trade, the entry is the most important aspect of the trade. Your forex entry point strategy will make a difference between success and failure in your trading. Focus on waiting for your entry setup to confirm before taking your trade.
The best forex trading system consist of these three points: one entry point and two exit points. One exit is the initial stop loss and the second exit is your profit target. The initial stop loss in the case of a sell trade would be higher than the entry price, while in the case of a buy trade the initial stop loss would be lower than the entry price.
Lets get into the details now of my forex entry point
Forex Entry Point Strategy Details
In forex trading, there is entry point for a sell trade and there is entry point for a buy trade. What are the indicators that I have on my trading chart that you can use as well. On my forex chart, I use triangular moving averages. You can use any other moving averages. Simple moving average will work OK. I just love the triangular moving average (TMA). The moving averages on my charts are: TMA 5, TMA 21 and TMA 34. My daily trades are based on 15 minute intraday time frame and for my long term trades are based on 8 hour time frame chart. Other indicators are MACD and Pivot points. You will see how we put this indicators together to confirm our entry points in the sell and buy trades below. Let's look at examples of sell and buy entry points.
BUY Setup Forex Entry Point
Triangular moving averages TMA 5, TMA 21 and TMA 34
MACD settings (40,50,20)
Pivot Points (S3,M0,S2,M1,S1,M2,PP,M3,R1,M4,R2,M5,R3). I can plot all these indicators automatically on my chart. If your broker don't have these, then check my broker review to see if you might like the broker I use.
Buy entry point is based on price bar or candle. The pivot point is to help you in your profit target if you trade based on the 15 minute chart. So what are we looking for to enter a trade.
- Macd Line must be above Macd Signal Line
- Macd Histogram must be above the zero line
- Price Candle or bar must close above all 3 TMAs, that TMA 5, TMA 21 and TMA 34.
See the chart below for an example of buy entry point.
Click here for clearer picture
The first trade resulted to 45 pips. The second trade resulted 93 pips. That is for the whole day. From 5 pm EST to 5 pm EST. Two trades on one currency pair. Using the same criteria you can find trades on 15 minute chart. Stick to your entry criteria. If all 3 criteria is satisfied, don't be afraid to take your trade.
SELL Setup Forex Entry Point
Sell entry point is also based on price bar or candle. The pivot point is to help us in our profit target if we trade based on the 15 minute chart. So what are we looking for to enter a trade.
- Macd Line must be below Macd Signal Line.
- Macd Histogram must be below the zero line.
- Price Candle or bar must close below all 3 TMAs, that TMA 5, TMA 21 and TMA 34.
See the chart below for an example of sell entry point.
Click here for clearer picture
The first trade resulted to 4 pips. The second trade resulted 53 pips. That is for the whole day. From 5 pm EST to 5 pm EST. Two trades on one currency pair. Using the same criteria you can find trades on 15 minute chart. Stick to your entry criteria. If all 3 criteria is satisfied, don't be afraid to take your trade. We will get into the details of profit taken in the exit strategy page of this forex trading tutorial.
*Important tip: Charts don't lie. If we trade what we see on the charts, we should be fine. Always wait for the close of a candle to confirm entry.
You can use this forex entry point strategy on any time frame. Test it on a demo account and follow the results for yourself. You can start using this entry point knowledge today. Try it. Be patient until your setup is confirmed. However, money management and exit strategy are part of your trading skills to learn to become a successful trader. So now we will go ahead with Money Management. From money management that is trade management, we will go ahead with Forex Exit Strategy
If you came directly to this page from the search engines, then I encourage your to goto Forex Trading Tutorial. Get started with Trading Basics Menu. You will gain much by starting here. If you have read everything on the Forex Basics menu, then it is time to get the beaf of my trading system by heading to menu Forex Trading System
|Are you new to forex trading, then I strongly recommend the course Beginning Forex Trader. This course comprised of clearly laid out video and audio designed to take you from A-Z of Forex Trading.You will learn everything you need to know to start trading the Forex the right way.Highly Recommended