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Forex strategies Top 5 course. Dear traders, I continue with my second Forex strategy using M1 chart + M30 and H1 chart as filters to follow the bigger trend. I call it Vidya 1 since I’m using on M1 chart the Vidya indicator + moving average also to enter in the trade.
On H1 you need to have the MACD indicator for filter and I use the standard inputs of 12, 26 and 9. On M30 chart you need to put also the MACD indicator + moving average crossover the MACD with the standard inputs and the moving average crossover you need to have two simple moving averages:
- one with period of two, I will put red color since it’s a fast one
- and the other one is period of eight you can put any color you’d like but it’s better to be different, so you know which one is the fast one and which one is the slower one.
I will keep here the default color and actually I will make it bigger, so you know exactly where they are crossing I will do the same for the two periods. Any platform you’re using you can try to make it as much visible as possible, so you’re sure when the crossing is happening and on M1 chart you need to have your Vidya indicator, not all the platforms are using this indicator but make sure you have it and you’re not using any other moving averages for these Forex strategies.
It’s kind of moving average but it’s a little bit more complicated when it’s created the formula is different and here I will use period of 30, not the standard 9 and I will keep the same color but I will just make it a little bit more solid. This is the 30 period Vidya and I will use also a simple moving average with period of 10 and I will use orange color since this is not very fast moving average.
Pretty much this is the setup for this Forex strategy and in the next video I will show you how we trigger the trades. Also, in the course Top 5 Forex strategies, you will learn how to set up each one.
For Vidya 1 the parameters and the indicators needed, as I`ve said I used best on USDPY, Stop Loss of 75 pips and Take profit of 25 pips.
For all of the five Forex srategies, we use different SLes and TPs. It’s also possible to add to the position but don’t forget to reverse if there is an opposite signal. What are the parameters on H1 use the standard MACD, on M30 the standard MACD plus 2 simple moving averages with periods of 2 and 8 and on M1 chart you need to have simple moving average period of 10 plus the Vidya on period of 30 and the rule here is that the Vidya needs to rises, so this is the rule to enter in the trade and I will explain it in the next video.
We continue with Vidya one system and the execution of the trades. I will show you what happened today, we can have a lot of examples but I like to see always the latest one.
Only here I will make more visible the moving average, so I will put line width of 3. It’s very clear when the price actually is crossing the line and this is actually the rule here for this Forex strategy. I execute the trades when I have confirmation from H1 and M30 and on M1 I see the price crossing the 10 moving average plus Vidya rises.
What’s the condition Vidya rises?
Very simple actually Vidya or any simple moving average or any moving average is rising when the price is above this line. It doesn’t matter how you say it, do you say Vidya rises or the price is above the video – it’s one and the same thing.
I will look what happened this morning from 1 o’clock in the morning I had the confirmation from MACD on H1 to trade long and on M30 We are looking for the same conformation on the other two Forex strategies on GBPUSD and USDJPY.
I had it also around this time I think even a little bit earlier from midnight and 30 minutes, so I had a confirmation from MACD but with this Forex strategy using the periods of 2 and 8 you can see that they’re crossing during the London opening exactly at 10 o’clock and then there is a little hesitation and then after 12:30 I had again the confirmation to trade long.
And during midnight till London opening there were a lot of opportunities, so they were taken by the automated trading. But for manual trading I trade only after London is open, so here I had the confirmation after 12:30 and I will put one vertical line there, so you can have an idea what time I had the confirmation to trade. From H1 and M30 chart after 12:30 this morning I had the opportunity to trade.
Let’s go back now on M1 chart and see where exactly is this and what happened
It’s around here I will put also a vertical line here. I’m just putting this vertical line so you can have a better idea. You don’t need to do it, but it’s very easy to follow if you have these vertical lines. At 12:30 the price is already above the moving average of 10 and you can see that the Vidya is rising, so I’m ready to trade once the price crosses the moving average of 10 and it happens just few minutes later.
I will place this vertical line on the moment of the entry and I will place also one horizontal line. You know exactly at what price was the entry, it’s 113.35 and your Take profit should be 25 pips higher and this is the price of 113.60 I will put one horizontal line there as well.
Make sure you place always the lines on the exact price
And I will make actually this line green, so this is our Take profit line. Let’s follow along, if you want to add to the position you have many opportunities with this system. With all of the Forex strategies presented in the course, you can add to the position, but make sure to keep a low risk.
You can see that after that at 13:06 you have one more entry, you have a couple of more entries after that but you should be very careful when adding to the position and I recommend no more than 3 times again.
If you have an opposite signal you have to reverse your position. What means opposite signal here, is not only that the price will cross down the moving average of 10 and the video will be falling down. But you need to have also confirmation from M30 and H1 chart.
Opposite trades or reversed are taken
When you have sell signal on MACD, sell signal on MACD, moving average crossing and the conditions for M1 chart. Basically you add to the trades, and when you have the opposite trade, reverse the positions. As you can see with our trade this morning, it had the Take Profit at 15:30. It’s very simple Forex strategy, gives you a lot of opportunities to enter but as I have said be careful entering too many times I recommend no more than 3 times. Let us know if you have questions about any of the Forex strategies.
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