Indicator Forex Trading Strategies

Jul 17 • Forex Trading Strategies • 2258 Views • 2 Comments on Indicator Forex Trading Strategies

Indicator Forex Trading Strategies are the trading strategies that are anchored to the indicators that can be found in any standard Forex chart. These charts can be accessed by any trader who is constantly online and has access to charting data software. One of the most popular charting software is the MetaTrader platform. However, this kind of strategy may not work well for traders who do not find it comfortable to dwell on technical stuff. But the degree of accuracy and success can be impressive.

Moving Average Analysis for Cross Trading Strategy

This is one of the most widely applied indicator forex trading strategies because despite its technical nature, it can be considered as something basic or simple. There are only two criteria to watch out for: the fast exponentially moving average (EMA) and the slow EMA. Any trader can gain access of the free expert advisor to make deals and do trading using this strategy in any platform of choice.

The key features of this trading strategy are the following: 

  • it is very easy to learn and follow
  • the selected indicators for crucial points are made very simple
  • setting a level for stop-loss is not difficult to do
  • the moving averages can be delayed up to ten bars
  • And this strategy cannot be applied when the market data offers only flat lines.

This trading strategy is supposed to be applicable to any currency pair of choice. All you have to do is to set a fast moving average (period is equal to 9) and a slow moving average (period is equal to 14). The long position can be set at the point where the fast moving average crosses the slow moving average from below. On the other hand, if the fast moving average crosses the slow moving average from above, that’s the point where you can enter the short position.
 

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Parabolic SAR Trading Strategy

If you are looking for risking forex trading strategies that can yield successful results when used properly, then the parabolic SAR trading strategy might be the one for you. It is anchored on the principle of direct signals given out by the parabolic SAR indicator. Here, you can find both reverse and stop levels.

The parabolic SAR trading strategy is one of those forex trading strategies that are easy to follow due to the fact that it only uses a single standard indicator. This indicator directly gives the trader the conditions for entry and exit. However, there can be lags in the indicator. That being said, the parabolic SAR strategy can be at some point excessively risky and ineffective.

This strategy can work for any pair of currency. All you have to do is to add an indicator (parabolic SAR) to the existing chart. Then you should set the maximum at 0.2 and the step to 0.05.

The long position should be set and entered when the current price crosses the parabolic SAR indicator from below and when the direction has changed. On the other hand, the short position should be set and entered when the current price crosses the parabolic SAR indicator from above and when the direction has changed.

In any case, when you seem to be convinced that there are forex trading strategies that are worth trying, it is better to try it using a demo or practice account first before trying it with a live forex account. This will keep you from losing real money from uncalculated risks.

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