Basic Trading Strategies For Novice Traders

jog

Trader
Aug 6, 2014
60
0
22
fxkool.com
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)

fxkool4.png


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

Confirmed PaxForex Representative
Apr 22, 2013
909
23
32
Canada
How long have you been using this strategy?
 

seekfxhelp

Banned
Nov 11, 2014
28
0
0
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

Trader
Feb 1, 2015
27
0
22
X-Three
informasi-fx.blogspot.co.id
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

Active Trader
Jul 9, 2017
908
70
39
33
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)

fxkool4.png


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.