Forex Kahuna

Discover a Forex Trading System with an ROI of 2956.16% per month. Get these FREE Forex Scalping Cheatsheets. First practice on your Forex Demo Account. This is what Paul Liburd says: This time, we are going to design a simple trading system. We are going to trade 1 hour chart.

1 – The Trend:
Let’s just draw it! We are not going to use any indicators. Open any currency chart, daily time frame and draw the trend, a simple line that shows the direction of the price. Next, move to smaller time frame, like 4H and draw another line. Then move to 1H time frame and draw another line. Now you would have 3 trend lines. Trade only when the 3 trend lines are going in the same direction. Why? Because that’s what trend lines are for… to follow them.
Next…

2 – For Targets we are going to use pivot.
You can use any online-free calculator or use any free indicator, it doesn’t matter. Now, if the trend is an uptrend, wait until it breaks above the pivot and move at least 20 pips… then open buy order. Set your targets at any resistance level (R levels). Then set your stop loss at the pivot level or at the first support level ( S level ). If the trend is a downtrend, wait until price breaks below the pivot and move at least 20 pips… then open sell order. Set your targets at any support level (S levels). Also set your stop loss at the pivot level or at the first resistance level ( R level).

Personally, I never use moving averages, so I wouldn’t recommend them to you. I believe they are the most useless indicators in existence, but if they work for you… use them. The best way to use them is for entry and exits. Here is how it works ..

Use a small Moving average, for example… 5 Moving average.
And a larger moving average, for example… 25 moving average.
When 5 cross over 25 = Buy entry signal.
When 25 cross over 5 = Sell entry signal.

Remember: we are using moving averages for best entry points, not to show us the direction of the trend. Instead of using moving averages, you can use candle sticks patterns. Like pin bars and inside bars. Just keep things simple and don’t turn it to a complicated issue. Trading is not – or should not – be complicated at all. The more complicated it is the harder to make money from it. Always keep it simple.

Never use too many indicators or too many systems.
Without money management, never trade at all. Again, without money management… never trade at all.
Basic money management rules:

- Never trade with money you can’t afford to lose.
- NEVER risk more than 5% of your account at any time, for any reason.
- Always set your targets = or > your stop loss value.
And if you’re not trading the news, then stay away from the market when important news is released.