138# Forex Profit Strategy
Inside bar indicator and Outside bar indicator
Submit by MaximoTrader 01/05/2013
This strategy is not recommended for beginners
Indicators used in Forex Profit Strategy
Since Forex Profit Strategy is based on day trading, the indicator and the
settings used in this strategy are based on the theory that the trades
should be placed as soon as possible to ensure maximum profit, but at
the same time such speed should not reduce the accuracy of trades.
This System is setting for 60min chart.
The indicators used are –
1. The 3 Moving Average smoothed and 6 Moving Average smoothed;
2. The 14, 5, 5 Stochastic;
3. The Parabolic SAR with settings of – 0.04/0.2;
4. Inside and Ouutside bar indicator.
Please refer to the chart given later below to understand how to set up
these indicators. Remember, the chart we are using is the 60 min.
chart.
But first, Let us briefly understand the purpose of each indicator –
1. 3 MA - The 3 MA is used to identify the direction of the market
on a 15 min chart. There are two reasons of using 3 MA. 1st, it is
a fast moving MA as compared to lets say a 6 MA which alerts
very late in the game.
The Stochastic and Parabolic SAR are more like confirming
indicators. They are necessary to increase the chances of having a
winning trade.
3. Inside bar indicator and Outside bar indicator – Candles tell you a lot of things. Not just if the
market is bullish or bearish, it can also tell you key support
Long Entry:
a. 3 MA smoothed indicator>6 MA smoothed indicator
b. The Parabolic SAR should be below the candle.
c. The fast moving Stochastic line should have crossed above the
slow moving stochastic and should be climbing up. (The only
exception is if the stochastic is above value of 80 at which
point we’ll NOT trade)
d. The inside bar indicator or outside bar indicator closed candle should be the bullish candle with the breakout.
Once all the conditions are met, open the trade using your trade
station. Please make sure the candle has closed before you place an pendig order at level breakout of the inside-outside bar indicator.
Short Entry
a. 3 MA smoothed indicator<6 MA smoothed indicator
b. The Parabolic SAR should be below the candle.
c. The fast moving Stochastic line should have crossed above the
slow moving stochastic and should be climbing up. (The only
exception is if the stochastic is above value of 80 at which
point we’ll NOT trade)
d. The inside bar indicator or outside bar indicator closed candle should be the bullish candle with the breakout.
Once all the conditions are met, open the trade using your trade
station. Please make sure the candle has closed before you place an pendig order at level breakout of the inside-outside bar indicator.
Exit position
When the two Ma Smoothe reverse position or profit target 12-18 pis depends by currency pair (very Recommended).
Stop loss pn the previous swing High or Low.
Share your opinion, can help everyone to understand the forex strategy.
in&out inside bar
forex profit strategy
