Forex strategy without indicators
This option is suitable for those who do not trust the technical tools that are installed in the trader’s trading terminal.
Or uses a web terminal in which it is not always possible to use the desired indicator due to limited functionality.
It is based on the use of pending orders and is so simple that it is suitable even for a novice trader.
The indicator-free strategy is based on conducting a visual analysis of the trend and determining certain price levels, on the basis of which entry points into the market are calculated.
Trading is based on opening transactions after overcoming a certain price level, that is, your order is triggered when there is a breakdown of the price level, which was a guideline when choosing an entry point into the market.
Its most successful use is observed in cases of weak market volatility or in a flat, when it moves more horizontally than vertically and the rate fluctuates within a few points. It is in this situation that there is a possibility that a significant event will occur that will force the trend to make a sharp move in one of the directions.
Preparatory moments.
1. Choice of instrument - in principle, any trader does not care what to trade, the main thing is that the chosen trading instrument brings profit. In our case, the main criterion by which we select a suitable currency pair is the size of the broker's spread.
Your task is to select several pairs with the smallest spread, usually these are the most liquid currency pairs, and then move on to the next step.
2. Trading time - one of the mistakes of many players is that they trade when it is convenient for them, and not when they can make money.
To start trading, we determine a currency pair that is in a flat, that is, its rate practically does not change for several hours. If there are no such pairs at the moment, we postpone trading for a couple of hours.
After we have chosen our trading instrument, we proceed to opening a transaction.
Opening deals without an indicator strategy.
As noted earlier, we will trade using pending orders, to do this, click on the “New Order” tab and in the window that opens, select – Type – pending order - Buy stop or Sell stop .
You can place orders in two directions or, depending on the market situation, only for Buy stop or Sell stop.
First, we build support and resistance lines in our flat area; the easiest way to do this is by adding trend lines in the metatrader terminal - insert - objects - trend line.
The lines will serve as a guide beyond the boundaries of which we will set a Buy stop or a Sell stop. You can set the installation locations by looking at a specific chart. On my own, if we imagine that the price is still in the price channel, I would set the Buy stop at 57.30 and the Sell stop at 56.20.
When setting, you should be guided by how much the price costs approximately in one day.
In this case, it is better to limit the existence of an order to 12 hours; this parameter is set on the Expiration - date and time tab.
The indicator-free Forex strategy is designed for trading on medium-term time frames, and it is even better to limit the maintenance of a position to one day.
In addition, a non-indicator strategy can also be implemented on the news - http://time-forex.com/strategy/torgovlya-na-novostyakh when news from the trader’s calendar acts as signals to open a new transaction. News trading also does not require the use of additional scripts.