Forex Trading Setups
need a opinion on a forex strategy?
i need an opinion on a forex strategy i use. here is what i use my time frame is the daily charts and i only trade the majors i use the following indicators Heiken-Ashi, and a 5 day on the open & 6 day on the close EMA plus a MACD and the ADX indicators on the bottom and i trade the crossovers is there anyone here that trades the forex with a similar setup what im looking for is just some opinions from some more experienced forex traders ive been back testing this for a couple of months and seems to be profitable but maybe i might just be missing something a more knowledgeable forex trader might be able to help me tweak it some more i realize there is no holy grail but any opinions would be greatly appreciated thank you for your time ive traded stocks for 30 years but the forex is a whole new ballgame
Opening and closing prices in forex do not have the same weight they do in stock trading, since forex is a continous 24 hour market. If you are using a 5 and 6 day EMA, and trading the crossovers, you might get many false signals. Test EMA 5 over EMA 13 on the close prices.
I have never used the Heiken-Ashi, but the MACD is pretty accurate on the daily chart when it gives bullish or bearish divergences and that is confirmed by a crossover or another signal elsewhere.
Back testing has the drawback of allowing the trader to ‘curve-fit’ the chart, better to test how the indicators perform in a demo account.
ADX is an okay indicator, but proper use of EMA with MACD will probably give better trade calls over the long term than the ADX alone.
Do not neglect the fundamental picture and know when to stay out of the market (major data, announcements), practise, practise, practise.
And good luck.
My Last 3 Forex Fakey Trade Setups
