Trend Following Forex Strategies Trend following is perhaps the most popular long-term strategy in all financial markets. As a trading strategy it is exceedingly effective and profitable when the conditions are favorable, is quite straightforward in its methodology, and there are many individuals, past and present, famous or obscure, who have used this strategy to success and riches. We should note that the technical aspect of trend following is in fact quite simple, but also that it requires, before everything else, discipline, sound money management, and patience from the trader. Trend following is not a short-term method, and patience and determination are as important as correct analysis as a result.
Trends are created by powerful underlying economic factors which may not be all that clear to those who are not very familiar with fundamental analysis. But the simple patterns created by the price action in response to the economic events can often be identified through methods that are easy to learn and apply. Thus, the retail trader has as much potential of success as the most experienced analyst if he can control his emotions and behave logically.
To apply this strategy we must first be aware of the existence of a trend. Trend Following Forex Strategies Without identifying a trend we would be gambling, and that’s not the purpose of trading forex. Both fundamental and technical analysis can be employed for identifying a trend, and both of them have their advantages and drawbacks. It is in general a good idea to use a combination of them for deciding on the trend’s character, and deciding on our entry and exit points.
Forex EMAS PSAR Trend Following Strategy Forex EMAS PSAR Trend Following Strategy; THE CHART SETUP: 1. Simple Moving Average SMA (32) (applied to high) and a simple moving average SMA (32) (applied to Low) – form a channel on the chart moving averages. 2. Trend indicator Parabolic SAR (step 0.02, maximum 0.2) Two simple moving average SMA (100) and SMA (200), applied to a … Read more
Forex Donchian Channels Flower Trend Following Strategy Forex Donchian Channels Flower Trend Following Strategy: Donchian Channels The template will load 3 Donchian channels into your charts, plus the Dynamic Zone RSIplus 2 moving averages plus timelines if you have the indicators. The Donchian channels are set as follows: First channel to 60 periods – white channels Second channel to 20 … Read more
Forex Corn Flower Trend Following Strategy Forex Corn Flower Trend Following Strategy: Construct a template according to the following settings: 8 EMA (yellow, dotted) 12 EMA (violet) 24 EMA (cornflower blue, hence the name) 72 EMA (khaki) Apply to H1 (conservative) or M30 (aggressive) chart only and remove the grid for clarity. System principles Cornflower is based … Read more
Forex Simple MACD Trend Following Strategy Forex Simple MACD Trend Following Strategy; Chart setup: • Moving average set to period = 20. • MACD(12,26,9). • Time frame 15m. Here is the system: Rules for a Long Trade 1) Look for currency pair to be trading below the 20-period EMA and MACD to be negative 2) Wait for price to cross … Read more
Forex Cross Ema Trend Following Strategy Forex Cross Ema Trend Following Strategy: CHART SETUP: EMA: 5(White), 10, 20, 50 RSI: 14 Stochastics 5, 3, 3 Zig Zag: 12, 5, 3 EMA/EMA Cross Indicator LONG: 2.a Our entry is defined by: – A Green arrow signaling an EMA cross /Entry Recommendation/ – A Whole candle closes above the 5 EMA (White) /Entry … Read more
Forex CL Buy Sell Trend Following Strategy Forex CL Buy Sell Trend Following Strategy: Set up your charts: Add a red 5 ema line (5 period exponential moving average) Moving Average, type in 5, choose exponential and apply to close. Repeat the steps for a 13 ema line (blue) Add 15, 3, 3 Stochastic Oscillator (close) on the 15 min … Read more
Forex Demark Trend Following Strategy Forex Demark Trend Following Strategy: It is easy, simple but awesome in power. It works with all pairs (major and others) which means you have an entry most of the time. I thought of calling it “The honey moon strategy”, but honey moon must end sooner or later. The magic … Read more
Forex Moon Shine Trend Strategy Forex Moon Shine Trend Strategy: Pairs:Majors and all Time frame: 30M, H1; Spread max:0,0005. Price: Bar Chart. Indicators: Parabolic SAR (0.2, acceleration factor0.02); Moving Averages, Exponential 10,Gold; Moving Averages, Exponential 25,Green; Moving Averages, Exponential 50,Red. Long Entry Position:when the ema 10 crosses the 25 and 50 up from the bottom andParabolic SAR is on the bottom. Short Entry Position: when the … Read more