Trend Trading Strategy

[pipster]

To trade the trend, we want a good entry point rather than just jumping in, risking a pullback. Here's a very basic strategy that gets you in a trend on pullbacks. It can be used on any timeframe but in my opinion it is best used on 4 hour or daily or even 1 hour.

Indicators: 50 EMA and Stochastics (14,3,3)

So here it is:

Look at the chart, and check the slope of the moving average. If it is a down, sell when stochastics becomes overbought and crosses down. For longs, do the opposite. This strategy should work in any market including the stock market since it is simply following the trend and buying/selling on pullbacks.

Now, as an example, I picked the pound vs dollar with both, longs and shorts using a 4 hour chart. On the last long trade, I just noticed the moving average was not really sloping up. But it doesn't matter, you get the idea.

PS: I learned this strategy from FXStreet.

[huttre]

Thanks for sharing pipster. will look more into this.

have you tried this on the 5 min chart?

[pipster]

Originally Posted by huttre

Thanks for sharing pipster. will look more into this.

have you tried this on the 5 min chart?

Yes, it can be used on any time frame especially when theres a nice trend (nice slope of the MA). I just prefer longer time frames since I like trading where you dont have to watch the charts a lot.



Here is a current chart of EURUSD on 5 minute, with its mini-uptrend (daily trend is down)

[pipster]

Here are my 2 current trades, both from 4hr. stops are at BE or almost at BE

[Jcm]

Originally Posted by pipster

Here are my 2 current trades, both from 4hr. stops are at BE or almost at BE

I saw these 2 exact set ups after reading your strategy yesterday. What are you using for stops, and what parameters cause you to move stops to b/e? Does it depend on time frames, pairs, or S/R levels?

**guess I should ask, what determines take profits, or if you doing any scaling out, as well?

Thanks for your time.

[pipster]

Originally Posted by Jcm

I saw these 2 exact set ups after reading your strategy yesterday. What are you using for stops, and what parameters cause you to move stops to b/e? Does it depend on time frames, pairs, or S/R levels?

**guess I should ask, what determines take profits, or if you doing any scaling out, as well?

Thanks for your time.

For stops, I like to use the swing high/low. In yesterday's trades, I closed half and moved stop to breakeven after about 40-50 pip profit (if i remember correctly). And let the rest go for the same amount of pips as the stop loss.

I trade support/resistance too (from 1hr and 4hr) so its a good idea to have S/R lines on your charts for potential turning points. On the EU trade, 1.2560 was my TP because of support. Look at the hourly chart, and you can see clearly some support at 1.2560. I'll post a chart...

[yosih36]

Thank you for Sharing

[gazul]

Thank you for Sharing.

[pipster]

Im currently in GU.

Got in a bit late though. Stop loss: 100 pips, TP is at previous resistance around 1.4450 (80 pips TP). RR is not 1:1 since I got in late, so good idea to go for a lower position...Let's see how it goes

[pipster]

I have hit my TP on the GU trade. Still holding onto some of it though.

In my last post I forgot to mention the EJ trade with the same setup that I took, now I have closed 2/3 on it and letting the rest run.