This is an article for beginners who do not yet have a winning method like this in Forex. What kind of trading do you do in Forex? It will eventually go bankrupt. We need evidence and reasons for this. For those who do not have a winning method like this, I have created one method as an article. I would like you to refer to it.
Method using Bollinger Bands
What kind of indicator do you use? The method introduced this time uses Bollinger Bands. Bollinger Bands will be an indicator to grasp the strength of the market.
Let’s put in a Bollinger band. In the above example, the blue lines are -2α (underline) and 2α (overline). The orange color is the middle line.
Method using moving average line
Next, let’s put in a 200-day moving average. The blue line is the moving average line. 200 days is the annual business day of Forex. In other words, the 200-day moving average is the direction of the market price in one year. I hope this 200-day average is tilted up or down, but I don’t recommend this method if it’s neither up nor down. The greater the slope, the easier it is to fit this technique.
Before doing this method, let’s check whether the whole is looking up or down with a long-term foot. 8 hours, daily, weekly, etc. are good. Also make sure that the direction of the 200-day moving average matches the overall direction. Check whether the whole is above or below, and then look at the 1-hour or 2-hour bars. Except for temporary movements, daily ,weekly movements always tend to converge in the direction of the daily, weekly and moving averages. It is a method that uses this hand.
Then, the figure shows where to enter the entry.
For example, if the moving average is above and the long-term bar is above, it is better to enter at the inverted point near the Bollinger Bands middle line. And it is to make a profit at 20 to 30 pips. If you cross the middle line and are about to go to -2α, you will lose money.
You can’t win right after a range or trend change
The weakness of this method is that you cannot win when you are in the range when the trend changes. This technique doesn’t fit because you don’t know the direction of the range up or down. This method does not fit because when the trend changes, it goes in the opposite direction to the moving average line. This method is effective only during the period when the current trend is ongoing.