How to Trade Forex

How to Trade Forex

Guppy Crossover Forex Trade

This is an anatomy of today’s forex trade. Note that the forex chart I use is xtick after being introduced to it by alex.

Monday the market moved up after 11am on march and the price bars crossed the multiple moving averages. This is an excellent example of the guppy crossover. Only two things can happen after this.

1. The market price will go back in the direction of the guppy so I would be waiting for my colour bars to turn red and the moment they do, I would be selling. This is more likely to happen than anything else.

2. A new guppy would be formed and as the time shows, this would be a long process and probably would last the whole night for next day’s trading. With a new guppy formed I really need to be in that trade.

At label B on April 1st 2007 at 22:30 we see that a full guppy has been formed and all that is needed is a long trade at 3am. I would be looking for a trend and for me a trend = trend 1 is green + momentum green and above 0 + guppy long + green bars. That is all with my trading system. You will be surprised to learn that it’s all just moving averages and an rsi.

At 3am which is when I place my trades, I just drew a line on the highest point on the chart which was at 1.9717 , from 2am European open.Note here that you may also use fractals but I like keeping my chart clean so I just draw lines instead. When the first bar crossed this point ,I placed my entry and my exit was going to be in two parts, 1st the next daily pivot level which was 1.9790 and the next exit is the next weekly pivot which was 1.9809. My stops are always 30 pips .Since I’m only trading a 10 min chart, I don’t bother with larger stops.

How To Trade Forex

My weekly goal is 50 pips so I know I have a high chance of getting that today.

The reason I stick to this system is that, it is hard to get a trade setup,I probably get 3 trades in a week, but I also take advantage of the fact that normally you will get a lot of pips either on Monday morning or Tuesday morning and may never need to trade the week again.Which is fine by me as I need to go to work. Hopefully when I come back to the charts my targets will be hit.

Forex Blogs

These are the forex blog entries I am following today.

1.Digital Breakfast – Candlestick Chart Pattern

I don’t believe in candlesticks in forex so will be watching this closely.

2. Forex Trading – Forex Trade Analysis for EURGBP

I hope you all had a great day trading and I will post the results.