π Strategy Overview
This winning Forex strategy uses three powerful elements:
- Moving Averages (MA): To identify trend direction
- Price Action: To catch breakout or rejection entries
- Risk Management: To protect your capital
π How It Works
- Add 50 EMA and 200 EMA to your chart
- Only trade in the direction of the trend (e.g., buy if 50 EMA > 200 EMA)
- Wait for a strong candlestick pattern (Engulfing, Pin bar, etc.) near the 50 EMA
- Enter the trade after confirmation
- Set SL: 10-20 pips below/above the signal candle
- Set TP: 1:2 or 1:3 risk-reward ratio
β
Example
EUR/USD is trending up (50 EMA above 200 EMA). A bullish engulfing pattern forms after a small pullback. Enter a BUY with SL below the low and TP at twice the SL size.
π Best Timeframes
Use on 15-min, 1H or 4H charts for best results. Avoid high-impact news times.
π Tips for Success
- Stick to the plan β donβt chase trades
- Use demo account to test first
- Always follow risk management (max 2% per trade)