Simple Strategy For New Traders - MT4/MT5 Resources

1. This strategy will definitely help you understand the price action.
2. This strategy will also help you trade with the trend.

Required tools/metrics

Bollinger Bands :- Default setting (20,0,2)
European Index: 100 Shift 0 Close
Toluene Diisocyanate: According to the indicator's default settings (to confirm settings and overbought/oversold conditions).
Time range: 1 hour, 4 hours or daily

If you are new to Forex and have a smaller account size, use this strategy on the 4 hour chart.

TDI alternatives:

RSI: 5 or 7
Stochastic: 5,3,3

Go long

We look for all buy entries when price is above and/or rebounding from EMA100. Price should not be overbought on TDI, RSI or Stochastic, nor should it be close to the upper Bollinger Bands.

Ideally, the price will be close to the middle or lower Bollinger Bands and slightly above the EMA100. Or it will be a breakout (trend changes from bears to bulls). Or TDI crosses upward (blue line crosses red line).

Stop Loss: Low spread currency pairs (EUR/USD, GBP/USD, etc.) are fixed at 20-30 pips, 5 pips below EMA100 (if entry is close to EMA) or previous low. If the stop loss is not nearby

Take Profit: You can close your position when the price hits the upper Bollinger Band. Ideally, I would take off when the TDI starts to cross downward.

We look for all short entries when the price is below EMA100. The price of TDI, RSI or Stochastic should not be oversold. Ideally, the price will be below the EMA100 and the TDI will cross downwards. The RSI, Stochastic or TDI will be close to or in an overbought condition. Otherwise the price will be rejected at EMA100 or fall below EMA100.

Stop Loss: As with buy orders, stop loss should be fixed at 20-30 pips or EMA100 (if the price is close to EMA100) or the previous high price candle.

Take Profit: When price hits the lower Bollinger Bands or when TDI enters overbought territory.

1. See examples. We do not take any trades when the market is volatile.
2. As a new trader, you should also avoid major news events such as non-farm payrolls data and interest rate decisions.
3. When Bollinger Bands forms a neckline
4. When prices all exceed EMA100. See the AUDJPY example on the left side of the chart. Price crosses between EMA100, or price challenges EMA100 again and again. Wait for clear signals. Breakout, bounce or refuse to enter trade otherwise avoid 100%

Attachment: TDI indicator + template in .Zip file

example

All Green Boxes are entries and all entries that have the potential to be purchased .