Practiced Mean solar day traders,
In this article I am going to say and explain some useful and simple strategies for newbies.If you do your research out there you will observe so many strategies which hope fast and sure profit. Their creators draw them as the “holy grail” and many times it needs to subscribe to take a strategy with its indicators without knowing if this strategy really works.Many of them don’t work or they work for short term periods and they don’t have added value in the long term run.From my feel,you can find all these paid strategies for free and finally in that location isn’t something special most them.Now, I am going to explain you some solid and simple strategies which are based in logic and in reality.
–
Back up and Resistance for puts and calls
The most popular strategy peculiarly for the new traders is “Support and resistance”. You should identify the right spot and you can have call trades in a back up area and put trades in a resistance expanse. How can you identify these areas? There are several ways.One of them is to discover how the price acts in older areas and trying to predict the cost movement when the toll comes back to these areas.This is the whole value of technical analysis.Predict the time to come by studying the price behaviour in the past.
In the nautical chart above you can see trading opportunities, puts in the previous resistance and calls in the previous support when the toll comes back to test again this area. The best market for this strategy is a ranging marketplace in which S&R keep the price into a aqueduct.In a trending market place we have many South&R breaks and this means that here these levels tin can’t keep the cost downward or up.
–
Fibonacci Bounces
With simple fibonacci levels you can discover trading opportunities.The about important fibonacci levels for me is 161.8 , 127 , 61.8 and 78.6. Many times in these levels we have bounces of the toll. Also, many harmonic patterns are created by these levels.
Look at this nautical chart. We have leg 1-ii , a down movement of the market.After that we have leg 2-iii an up movement of the market.Many times like this chart, the cost makes bounces in levels 161.viii and 127. These are good physical levels for Due south&R.You tin can combine them with an Overbought area for puts and an oversold surface area for calls (with RSI or a value chart) or with previous South&R in these fibonacci levels and y’all a high probability setup.
How to draw fibonacci?Drag the fibo drawing tool from spot ane to spot ii and wait for the cost to hit these levels.(spot three in this chart)
-Bounces in a trend
This is a unproblematic solid strategy and give you the opportunity to trade with the trend.You don’t have to identify when a trend begins. You have to look for a trend and observe the correct time to leap in.For this y’all tin can use EMAs.
Expect at this chart. It’due south from EURUSD currency pair with a five minutes timeframe.In the blueish rectangle we take a skilful upward trend.The up trend is strong.All that you have to do is to expect for the toll to hitting the EMAs.In the chart I utilise two EMAs. A 13 period (the green one) and a 26 period (the blood-red one).The price makes a down movement in an uptrend and the EMAs tin can give y’all a spots in which the price will stop the down movement and it will continue with the general up trend. Discover the telephone call arrow in the chart.The price is moving downwardly and when it hits the red EMA(26 flow) nosotros accept a bounce and after that the price is moving with the general up trend.For this strategy you can likewise employ Tenkan and Kijun of Ichomoku Kinko Hyo.
-EMAs crossovers with Heiken Ashi
In this strategy you can wait for EMAs crossovers and trade in the showtime of a new trend.How to do this? Employ two EMAs. I use 13,26 period EMAs for v minutes and 15 minutes timeframes.Find in your metatrader platform Heiken Ashi indicator and drib information technology to your nautical chart.Why Heiken Ashi?Because they tin reduce the noise of the cost.In this case we desire a trader with a longer expiry like xv- 30 minutes because the price maybe will move sideways in the beginning.Look at this chart.
As you lot can see I use the EMAs I said above and I wait for crossovers.In the two blue rectangles nosotros have crossovers.I use Heiken Ashi bars in this chart.When I encounter a crossover and the Heiken Ashi bar has the right colour (cherry-red for puts , white for calls) I take trades with xv-30 minutes decease.On the kickoff crossover yous can have a put and in the second crossover you tin accept a call.
Best Regards,
Kostasze
Source: https://www.binaryoptions.net/simple-strategies-for-newbies/
