138# Forex Profit Strategy

Inside bar indicator and Outside bar indicator

Submit by MaximoTrader 01/05/2013

 

This strategy is not recommended for beginners

Indicators used in Forex Profit Strategy

Since Forex Profit Strategy is based on day trading, the indicator and the

settings used in this strategy are based on the theory that the trades

should be placed as soon as possible to ensure maximum profit, but at

the same time such speed should not reduce the accuracy of trades.

This System is setting for 60min chart.

The indicators used are –

1. The 3 Moving Average smoothed and 6 Moving Average smoothed;

2. The 14, 5, 5 Stochastic;

3. The Parabolic SAR with settings of – 0.04/0.2;

4. Inside and Ouutside bar indicator.

Please refer to the chart given later below to understand how to set up

these indicators. Remember, the chart we are using is the 60 min.

chart.

But first, Let us briefly understand the purpose of each indicator –

1. 3 MA - The 3 MA is used to identify the direction of the market

on a 15 min chart. There are two reasons of using 3 MA. 1st, it is

a fast moving MA as compared to lets say a 6 MA which alerts

very late in the game.

The Stochastic and Parabolic SAR are more like confirming

indicators. They are necessary to increase the chances of having a

winning trade.

 

3. Inside bar indicator and Outside bar indicator Candles tell you a lot of things. Not just if the

market is bullish or bearish, it can also tell you key support

and resistance levels.

 

Long Entry:

a. 3 MA smoothed indicator>6 MA smoothed indicator

b. The Parabolic SAR should be below the candle.

c. The fast moving Stochastic line should have crossed above the

slow moving stochastic and should be climbing up. (The only

exception is if the stochastic is above value of 80 at which

point we’ll NOT trade)

d. The inside bar indicator or outside bar indicator closed candle should be the bullish candle with the breakout.

Once all the conditions are met, open the trade using your trade

station. Please make sure the candle has closed before you place an pendig order at level breakout of the inside-outside bar indicator.

Short Entry

a. 3 MA smoothed indicator<6 MA smoothed indicator

b. The Parabolic SAR should be below the candle.

c. The fast moving Stochastic line should have crossed above the

slow moving stochastic and should be climbing up. (The only

exception is if the stochastic is above value of 80 at which

point we’ll NOT trade)

d. The inside bar indicator or outside bar indicator closed candle should be the bullish candle with the breakout.

Once all the conditions are met, open the trade using your trade

station. Please make sure the candle has closed before you place an pendig order at level breakout of the inside-outside bar indicator.

 

Exit position

When the two Ma Smoothe reverse position or profit target 12-18 pis depends by currency pair (very Recommended).

Stop loss pn the previous swing High or Low.

 

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in&out inside bar

in&out inside bar
Forex indicator in&out inside bar
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