Daily Profit Forex Day Trading Strategy
Trading the forex market doesn’t need to be complicated at all. Applying a simple, logical forex strategy is all you need to reap profits from trading FX.
Here’s a look at how a simple day trading strategy can help you to make daily profits from currency trading.
Used indicators: HotPips.ex4
Preferred time frame(s): M1, M5, M15
Trading sessions: London and US
Currency pairs: Low spread pairs
Example: EUR/USD M5 Chart
The figure above is an example of the daily profit forex day trading strategy in action on the 5 minute Euro/US Dollar chart.
You can see 5 trades – all 5 ended up with a profit.
Let’s take a look at the rules below:
- Hotpips red/blue histogram above 0.00, this indicates an uptrend (ignore the green histogram).
- Hotpips paints a yellow arrow.
==> Open buy trade. The stop is placed slightly below the most recent support level.
Take profits: Exit the buy trade at risk-to-reward 1:1.5. Alternatively, close the buy trade for 20-40 pips (depends on the pair’s volatility).
- Hotpips red/blue histogram below 0.00, this indicates an downtrend (again, ignore the green histogram).
- Hotpips paints a blue arrow.
==> Open sell trade. The stop is placed slightly above the most recent resistance level.
Take profits: Exit the buy trade at risk-to-reward 1:1.5. Alternatively, close the sell trade for 20-40 pips (depends on the pair’s volatility).