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369# Forex Bliz

EMA indicator with Fibonacci Retracement

 

Submit by JamesUK 11/08/2013

 

Firstly, we will begin with the tools needed for Forex Blitz:

Time Frame

The main time frame we are going to watch is the 1-hour time frame.

After confirming the trend, we will look to 5-min chart for entering and

exiting a position. You can also trade the 15-minute time frame with 5-

minute chart to determine your entries.

 Exponential Moving Average as Trend Indicator

55-EMA; using weighted moving average, we can identify the immediate

trend faster than a Simple Moving Average. This is one of the important

indicators in the FB system as it will tell us whether to enter long or enter

short.

MACD Oscillator

FastEMA 4, SlowEMA 9 and SignalSMA 6; this oscillator will helps traders

to identify market momentum and thus creates entry signals. Divergence

is the most effective early sign that the movement is going to reverse.

Power Hours

These hours are especially volatile because it eclipses at least two major

foreign exchange markets from the Asians to the Europeans then the

Americans.

0700 GMT – 1800 GMT

 

Trading Pairs

GBP/USD and EUR/JPY. Although it seems that most of the majors and

crosses worked well, but I did not try with other pairs so please do a

demo first because going live on other currency pairs.

Buy (Long)

The closing price must be above the 55-EMA on the hourly chart

The closing hourly candlestick must be a bullish candlestick

MACD bar must show a positive divergence or show a higher low bar

Forex Bliz
Forex Bliz

 

Figure 1

If all of the conditions above agree,

o switch to 5-min chart

o Scenario A: look out for 38.2% or 50% Fibonacci retracement

(support)

 

Scenario B: if the price action does not retrace to 38.2% level, open

long position at the break of the previous hourly candle’s high; set

stop loss at 61.8% or at recent swing low if your percentage risk

per trade allows.

Depending on the number of lots you enter, you should exit part of the

position at the first recommended exit target from 1 to 3 and move the

remaining lots to break even. Exit the rest of the lots when the price

action hits the recommended exit target from 4 to 7 (see the attached

calculator).

Forex Bliz
Forex Bliz

 

Sell (Short)

The closing price must be below the 55-EMA on the hourly chart

The closing hourly candlestick must be a bearish candlestick

MACD oscillator must cross lower the SignalEMA on the hourly chart and

color must be in RED (see Figure 2).

If all of the conditions above agree,

o switch to 5-min chart

o Scenario A: look out for 38.2% or 50% Fibonacci retracement

(support) from the recent swing high on the hourly chart. Open

short position if the candlestick closes below the retracement level

(either 38.2% or 50%); set stop loss at 61.8% or the recent swing

high if your risk per trade allows.

 

oScenario B: at the next candlestick, if the price action does not

retrace to 38.2% level, open long position at the break of the

previous hourly candle’s low; set stop loss at 61.8% or at recent

swing high if your percentage risk per trade allows.

Depending on the number of lots you enter, you should exit part of the

position at the first recommended exit target from 1 to 3 and move the

remaining lots to break even. Exit the rest of the lots when the price

action hits the recommended exit target from 4 to 7 (see the attached

calculator).

Forex Bliz: Template, Indicators and Fibonacci calculator

Forex Bliz
Forex Bliz: Template, Indicators and Fibonacci calculator
ForexBlitz.rar
compressed file archive 2.3 MB
Forex Bliz
Forex Bliz

Write a comment

Comments: 2
  • #1

    Frank (Tuesday, 13 August 2013 16:18)

    Hi James , very nice system ! 2 questions : 1 ) macd contained into the ForexBliz rar is not colored ( blue & red ) 2) what do you mean by "attached calculator " ?
    Thank's for answer.

  • #2

    Forextradingstrategiesresources (Wednesday, 14 August 2013 01:42)

    xls file