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How To Tell If News Will Be Positive Or Negative (Forex)FOREX HISTORICAL CHARTS
The Turtle Channel indicator can be used as a trend direction filter, a trend reversal signal and a trailing stop loss placement. As a trend filter, traders can avoid taking trades that are not inline with the trend based on the color of the main line. As a trend reversal signal, traders can take trades whenever the line shifts or the color of the line changes.
Traders can also trail the stop loss behind either the dashed line or the main line to protect profits. Sidus v2 The Sidus v2 indicator is a trend following indicator which is based on the crossover of moving averages. Moving average crossovers are a viable way to trade trend reversals. It allows traders to objectively identify when and where the market trend is reversing by looking at the crossover of the lines. The question is which moving averages and what method to use.
It plots two lines representing the EMAs used. The faster line is blue, while the slower line is red. Potential trend reversals are based on the confluence of the crossover of the two moving averages and a trend reversal signal coming from its underlying RSI. The indicator then conveniently plots an arrow pointing the direction of the trend reversal.
Trading Strategy First, this trading strategy identifies the general trend direction based on the Turtle Channel indicator. If you are not sure how to analyze the candlestick pattern, open the long trade after you have strong bullish closing in the 1 hour or 4-hour candle. Traders who have strong knowledge about the price action confirmation signal can set the stop loss below the bullish price action confirmation signal. Take Profit Usually, the take profit is set to the nearest resistance level.
Traders who have strong analytical knowledge can close the trade manually after the bearish crossing take place in the EMA. The red tunnel will represent the long term trend, and the WMA 8 and 5 will represent the short term trend. For better accuracy, you should be looking to take the short trade when the long and short term trend is bearish. Entry Execute the short trade as soon as WMA 5 and 8 cross below the red tunnel. Look for the bearish price action signal as it will give you a better opportunity to make a profit.
If you are good at using the price action confirmation signal, you can also set the stop loss above the 28 EMA. Take Profit For the take profit, you can identify the nearest support level. But if you want to ride the bearish trade, you can carry the trade till you get a bullish crossover in the EMA. But to improve your efficiency, you can learn the use of the Japanese candlestick pattern.
In order to avoid the critical state of the market, you can also avoid taking the trades during the key news release. Try to maintain a minimum risk to reward ratio while using this trading strategy. If you are experienced at trading, we recommend you evaluate the trend in the daily time frame. After that, move to the H1 or H4 time frame and see if the long-term trend matches with the H1 and H4 time frame trend.
By using this multiple time frame analysis technique, you can improve the accuracy of the trade execution process. But make sure you learn to use the multiple time frame analysis in the demo account so that you don't have to risk any real money.
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