One of the best tools the rich have to increase their wealth is money. Many people work to make money, but the rich let their money work for them. It’s about investing their money. Investing means investing in the stock market. Well, investing in the stock market means you are there for the long haul and it is a slow and steady process of making money.It is possible for a simple person to invest in the stock market However, it can also make the process very slow.
There are many people who want their money to work for them, but want it a little sooner. This is where trading comes into play. Investing is a slow and steady process, while trading is about entering and exiting the market and making money in the process. This means buying a specific tradable instrument and selling it when the price rises, or vice versa when shorting the market.
The forex market is perhaps one of the most lucrative trading markets available to individual traders. It has the largest daily trading volume. This means more volatility and more opportunities. It also carries a lot of risks. Traders need to know what they are doing if they want to trade money to make money.
2 Pole Butterworth
Two Pole Butterworth is a custom trend following indicator based on moving averages.
In fact, this is a modified moving average adapted to the short-term trend. Plots a moving average line that changes color whenever the slope of the line changes. This helps traders identify trend direction based on the color of the moving average line. Traders can also identify potential trend reversal points that can be used as signals to enter the market. can.
The indicator plots a blue line indicating a bullish trend bias and a red line indicating a bearish trend bias.
Stochastic Oscillator
The Stochastic Oscillator is a momentum technical indicator that helps traders identify trend direction, momentum, and overbought or oversold price conditions.
This indicator is one of the more classic oscillator type indicators. It is used by thousands of professional traders to help them identify market direction and trade accordingly.
The Stochastic Oscillator plots two oscillating lines based on past price movements. These two lines oscillate between 0 and 100. There are also markers at levels 20 and 80, and some setups include a marker at level 50.
In general, trend direction or bias can be identified based on how two oscillator lines overlap. The market is bullish when the fast line is above the slow line. If it overlaps vice versa, the market is bearish. Trend bias can also be identified based on the position of the two lines relative to level 50. If the line is above it, the market is bullish. If the line is below it, the market is bearish. Oscillator lines above level 80 may indicate an overbought market, and lines below 20 may indicate an oversold market.
trading strategy
This trading strategy is a simple trend following strategy based on the confluence of the Two Pole Butterworth indicator and the momentum reversal signal generated by the Stochastic Oscillator.
First, we need to identify the direction of the trend. It is based on how a 20-period Exponential Moving Average (EMA) overlaps with a 100-period Exponential Moving Average (EMA). This can also be identified based on the general position of price action relative to the two EMA lines.
Retracements occur in trending markets. The price should retrace towards the area near the 20 EMA line.
The price should then return to the direction of the trend shortly after the retracement. This will be your entry signal.
index:
- -wmmm-twoPole Butterworth
- 20 EMAs
- 100EMA
- Stochastic Oscillator: 15-5-5
Preferred timeframe: 30 minute, 1 hour and 4 hour charts
Currency pair: Forex Major, Minor, Cross
Trading session: Sessions in Tokyo, London and New York
Trading setup
entry
- The 20 EMA line should be above the 100 EMA line.
- Both EMA lines should be sloping.
- Price action should normally be above both EMA lines.
- The price is back in the area near the 20 EMA line, the bi-polar Butterworth line turns red, and the fast Stochastic line dips briefly below the slow line.
- The Two Pole Butterworth line should turn blue as it joins the fast Stochastic line crossing over the slow line.
- Please confirm these conditions before entering a buy order.
stop loss
- Place a stop loss on the support below the entry candle.
Exit
- Set your take profit target to double the risk of your stop loss.
sell trade settings
entry
- The 20 EMA line should be below the 100 EMA line.
- Both EMA lines should be sloping downwards.
- Price action usually needs to break below both EMA lines.
- The price is back in the area near the 20 EMA line, the Two Pole Butterworth line turns blue, and the fast Stochastic line briefly crosses the slow one.
- The Two Pole Butterworth line merges with the fast Stochastic line crossing under the slow line and turns red.
- Please confirm these conditions before entering a sell order.
stop loss
- Place a stop loss at the resistance above the entry candle.
Exit
- Set your take profit target to double the risk of your stop loss.
Conclusion
This simple trading strategy helps traders to make consistent profits over the long term. As long as it is used in the correct market conditions, which are trending markets, traders can trade with a high risk/reward ratio and high probability. You should be able to find the settings.
There are many examples where the yield can exceed 2x the risk of the stop loss, but in this strategy the target is fixed at 2x the risk in order to get a good risk/reward ratio. However, risk-taking traders can also opt for unlimited exits and manually exit trades depending on market movements. This allows you to make more profit, but it can also ruin the spirit of traders who have to decide when to close a trade.
Forex Trading Strategy Installation Instructions
Money Makes Money Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicators and templates.
The essence of this forex strategy is to convert accumulated historical data and trading signals.
Money Makes Money Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can anticipate further price movements and adjust this strategy accordingly.
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How to install Money Makes Money Forex Trading Strategy?
- Download Money Makes Money Forex Trading Strategy.zip
- Copy the *mq4 and ex4 files to the Metatrader directory /experts/indicators/.
- Copy the tpl file (template) to the Metatrader directory /templates/.
- Start or restart your Metatrader client
- Choose a chart and timeframe to test your forex strategy
- Right click on the trading chart and hover over “Templates”
- Move right to select Money Makes Money Forex Trading Strategy
- You can see Money Makes Money Forex Trading Strategy available on the chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with his MT4 indicator on the MetaTrader platform.
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