Basic Trading Strategies For Novice Traders

[jog]

KoolPay continue its ‘teaching’ set of basic forex strategies. If you are a novice trader we highly recommend you to take a couple of minutes and look over the guidelines mentioned below. Both MACD (Moving Average Convergence Divergence) and OsMa (Moving Average Oscillator) are great tools which can give an accurate signal when a currency is oversold or overbought. In fact, the MACD indicator’s being used as primary indicator of trend and relationship between data (price, volumes), OsMA is an auxiliary indicator for this technical analysis.

Here is the example of a very easy but at the same keen trading strategy.

Time Frame M30 MACD (12,26,9) OsMA (5,20,9)

TRADING TIPS

LONG POSITION –BUY
We first need to have a look at the OsMA chart. If an oscillator heads up (>0) with the fist positive bar and MACD is about to cross 0 and advance as well, this is our strong BUY signal.

SHORT POSITION – SELL
Same pattern applies for the short position but reversely. If OsMA descends (<0) with the first negative bar and MACD is about to cross 0 and falls down as well, this is our strong SELL signal.

 

[Rambo35]

How long have you been using this strategy?

 

[Ricky Stewart]

Interesting strategy, for beginners I wonder if they will be able to use it effectively. Besides that how long have you been using this strategy?

 

[seekfxhelp]

at first bit confusing read the description while figure it out on the chart. I thought we should have more order executed based on chart, i saw several osMa crossed 🙂, but it only marked 2 order are valid to executed. and my mistake is in hurry read the whole text, and the key point is "fist positive bar - fist negative bar" . simple strategies, i would test this one starting next trading days, and give a daily update for my trading result.
thanks for share.

 

[tolasforex]

Forex online trading in my opinion is easier that many people imagine. I have a little tip for new traders. Trade with initial deposit $100 micro account. Open position buy or sell using minimum lot size, 0.01. Set TP 30-40 points. Do not set SL. Although floating negative, do not be panic, with it. Sure. You will close as your TP.

 

[Ary Barroso]

KoolPay continue its ‘teaching’ set of basic forex strategies. If you are a novice trader we highly recommend you to take a couple of minutes and look over the guidelines mentioned below. Both MACD (Moving Average Convergence Divergence) and OsMa (Moving Average Oscillator) are great tools which can give an accurate signal when a currency is oversold or overbought. In fact, the MACD indicator’s being used as primary indicator of trend and relationship between data (price, volumes), OsMA is an auxiliary indicator for this technical analysis.

Here is the example of a very easy but at the same keen trading strategy.

Time Frame M30 MACD (12,26,9) OsMA (5,20,9)

TRADING TIPS

LONG POSITION –BUY
We first need to have a look at the OsMA chart. If an oscillator heads up (>0) with the fist positive bar and MACD is about to cross 0 and advance as well, this is our strong BUY signal.

SHORT POSITION – SELL
Same pattern applies for the short position but reversely. If OsMA descends (<0) with the first negative bar and MACD is about to cross 0 and falls down as well, this is our strong SELL signal.

No doubt, MACD is one of the most popular default trading indicator! But, I see it works mainly higher time frames! According to my experience MACD describes market swing points (like higher high, lower low) so nicely.

 

[Tanya Chekhova]

This is a nice strategy in theory, not sure if it works in practice.