Simple Day Trading Forex System

Simple Day Trading Forex System is a trend- momentum strategy for intraday trading very easy.

Time Frame 30 min.

Currency pairs: major.

Forex Indicators:

Pivot points levels,

Relative Strenght Index (14 period, close),

MACD Histogram oscillator ( 8, 17, 9),

EMA period 50, close.

Trading Rules

Buy

1. The price above the 50 exponential moving average.

2. MACD (8,17,9) > 0 level.

3. RSI > 50 line

4. Entry if the price is above support line or if has broken resistance line.

5. Initial stop loss below the previous swing low on the support line.

6. Target is at the next resistance line.

Sell

1. The price below the 50 exponential moving average.

2. MACD (8,17,9) < 0 level.

3. RSI < 50 line

4. Entry if the price is bbelow resistance line or if has broken support line.

5. Initial stop loss above the previous swing high on the resistance line.

6. Target is at the next support line.

Trade Examples

Above is an example of short trades for eur/usd pair 30 minutes chart. At point 1 from

the above chart, the price is below the 50 EMA. The MACD histogram is below the zero

level. The RSI is below the 50 level.

The above conditions are met so I placed a short trade. I placed my stop loss above the

recent pivot high and I placed my profit target at the next pivot point.

Entry price: 1.4340

Stop loss: 1.4370

Take profit: 1.4310

Profit: 30pips

Chart 2 is a eur/usd pair chart on a 30 minute chart and the set up is as follows by the

system requirement. Based on the above chart at point 1 price is below the 50 EMA. At

point 2 MACD Histogram is below the zero line. At point 3 the RSI is below the 50 line.

All the requirements are met therefore I placed a short trade at point 4. I placed my stop

loss above the closest resistance level at point 5 and I set my profit target at the nearest

support level as shown at point 6 on the above chart.

Entry price: 1.4420

Stop loss: 1.4454

Take profit: 1.4388

Profit: 32pips

Chart 3 is gbp/usd pair on a 30 minute chart and the set up is based on the system

requirement. From the above chart at point 1 the price is below the 50 EMA. At point 2

MACD Histogram is below the zero level. At point 3 the RSI is below the 50 line

All conditions are aligned and I opened a short trade at point 4. My stop loss is placed

above the closest resistance level at point 5 and I placed my profit target at the closest

support level shown by point 6 on the chart

Entry price: 1.6420

Stop loss: 1.6476

Take profit: 1.6380

Profit: 40 pips

Chart 4, above is an example of a long trade for the pair usd/cad on a 30 minute chart.

All the requirements are aligned for a long position. At point 1 the price is above the 50

EMA. The MACD Histogram is above the zero level at point 2 and at point 3, RSI is

above the 50 line.

Therefore, having all conditions agreed, I opened a long trade (buy) at point 4 and

placed my stop loss at point 5 which is the nearest support. My target profit is the next

resistance at point 6 on the chart. After 3-4 bars, about 1 ½ hours later, I attained my

profit target.

Entry price: 0.9702

Stop loss: 0.9665

Take profit: 0.9740

Profit: 38 pips

Chart 5 above is an example of long trade for the pair gbp/jpy. The requirements are

fulfilled and met all the rules for a long position. At point 1 the price is above the 50

EMA. The MACD Histogram is above the zero line at point 2 and at point 3, RSI is

above the 50 line.

Having all the rules aligned and verified, I entered a long trade at point 4 and placed my

stop loss at point 5, at the nearest support pivot. In this chart, my target profit was

placed at point 6 on the chart, which is the next resistance level and where I can attain

at least a 1:1 ratio with my risk and reward.

Entry price: 131.33

Stop loss: 130.88

Take profit: 131.90

Profit: 57 pips

Chart 6 above is an example of long trade for the pair usd/chf on a 30 minute chart. The

setup fits the requirement for a long position. At point 1 the price is above the 50 EMA.

The MACD Histogram is above the zero line at point 2 and at point 3, RSI is above the

50 level.

With the setup requirement signaling a long position, I placed a long trade at point 4 and

my stop loss at point 5, which is the previous support. My target profit was placed at

point 6 on the chart, which is the nearest resistance giving me a reasonably good risk

and reward ratio.

Entry price: 0.8396

Stop loss: 0.8371

Take profit: 0.8429

Profit: 33 pips