A simple basic trend following strategy anyone can learn to generate profits from forex trading.
It’s made up of an exponential moving average and a custom built oscillator for trade entry.
Indicators: 100 Period Exponential Moving Average, QQE.ex4 (oscillator)
Preferred time frame(s): 15 min and higher
Trading sessions: any
Preferred Currency pairs: any
Example: EUR/USD H1 Chart
As shown in the EUR/USD chart above, this strategy generated 3 profitabele buy signals in the uptrend in the EUR/USD pair.
- Price above the 100 EMA (uptrend)
- QQE crosses back above 50 line from below
==> Open buy trade and place stop-loss below the most recent swing low level.
Price Target: Use risk-to-reward at least 1:2 (i.e. risking 50 pips to make 100), or any other profit taking method you feel more comfortable with.
- Price below the 100 EMA (downtrend)
- QQE crosses back below 50 line from above
==> Open sell trade and place stop-loss above the most recent swing high level.
Price Target: Use risk-to-reward at least 1:2 (i.e. risking 30 pips to make 60), or any other profit taking method you feel more comfortable with.