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Simple Forex Day Trading Strategy

This is a very simple forex strategy for day traders. The strategy itself consists of only one advanced trading indicator.

The indicator is composed of 2 bands and blue buy and red sell arrows. You can try this strategy on the 1 min, 5 min, 15 min and 30 min time frame.

Let’s take a look below how it works:

Chart Setup

Indicators: fastsignals.exe
Preferred time frame(s): 1 min and up
Trading sessions: London and New York
Preferred Currency pairs: any

Download

Download the Simple Forex Day Trading Strategy.

Example: AUD/NZD M15 Chart

simple-forex-day-trading-strategy

As shown in the AUDNZD trading chart above, the bands are pointing down, so we are looking for sell signals (see trading rules).

The indicator painted 2 qualified sell arrows near the top of the upper red band.

Both sell trades were closed at the lower blue band for +38 pips and +30 pips profit.

Please note that we never trade any of the blue arrows when the bands go downwards.

Trading Rules

Qualified Buy Trade:

  • Bands pointing up
  • Blue buy arrow appears near the lower band

==> Open buy trade and place protective stop-loss below the most recent swing low point (support).

Price Objective: Close the buy trade when the price touches the upper band.

Qualified Sell Trade:

  • Bands pointing down
  • Red sell arrow appears near the upper band

==> Open sell trade and place protective stop-loss above the most recent swing high point (resistance).

Price Objective: Close the sell trade when the price touches the lower band.

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