8.1 KiB
Sydney Session (Asian Session):
Trading Time: 10:00 PM to 7:00 AM GMT (UTC +0) (3:00 PM - 12:00 AM UTC -7 Denver)
- AUD/USD (Australian Dollar/US Dollar)
- AUD/JPY (Australian Dollar/Japanese Yen)
- NZD/USD (New Zealand Dollar/US Dollar)
Tokyo Session (Asian Session):
Trading Time: 12:00 AM to 9:00 AM GMT (UTC +0) (5:00 PM - 2:00 AM UTC -7 Denver)
- USD/JPY (US Dollar/Japanese Yen)
- EUR/JPY (Euro/Japanese Yen)
- AUD/JPY (Australian Dollar/Japanese Yen)
- NZD/JPY (New Zealand Dollar/Japanese Yen)
London Session (European Session):
Trading Time: 8:00 AM to 5:00 PM GMT (UTC +0) (1:00 AM - 10:00 AM UTC -7 Denver)
- EUR/USD (Euro/US Dollar)
- GBP/USD (British Pound/US Dollar)
- EUR/GBP (Euro/British Pound)
- USD/CHF (US Dollar/Swiss Franc)
- EUR/JPY (Euro/Japanese Yen)
New York Session (North American Session):
Trading Time: 1:00 PM to 10:00 PM GMT (UTC +0) (6:00 AM - 3:00 PM UTC -7 Denver)
- USD/JPY (US Dollar/Japanese Yen)
- GBP/USD (British Pound/US Dollar)
- EUR/USD (Euro/US Dollar)
- USD/CAD (US Dollar/Canadian Dollar)
- AUD/USD (Australian Dollar/US Dollar)
Major Forex Pairs:
- EUR/USD (Euro/US Dollar)
- USD/JPY (US Dollar/Japanese Yen)
- GBP/USD (British Pound/US Dollar)
- AUD/USD (Australian Dollar/US Dollar)
- USD/CHF (US Dollar/Swiss Franc)
- NZD/USD (New Zealand Dollar/US Dollar)
- USD/CAD (US Dollar/Canadian Dollar)
Minor Forex Pairs:
- EUR/GBP (Euro/British Pound)
- EUR/JPY (Euro/Japanese Yen)
- GBP/JPY (British Pound/Japanese Yen)
- AUD/JPY (Australian Dollar/Japanese Yen)
- EUR/AUD (Euro/Australian Dollar)
- GBP/AUD (British Pound/Australian Dollar)
- EUR/CHF (Euro/Swiss Franc)
- GBP/CHF (British Pound/Swiss Franc)
- EUR/CAD (Euro/Canadian Dollar)
- AUD/CAD (Australian Dollar/Canadian Dollar)
- NZD/JPY (New Zealand Dollar/Japanese Yen)
- CAD/JPY (Canadian Dollar/Japanese Yen)
- AUD/NZD (Australian Dollar/New Zealand Dollar)
- EUR/NZD (Euro/New Zealand Dollar)
- GBP/NZD (British Pound/New Zealand Dollar)
- AUD/CHF (Australian Dollar/Swiss Franc)
- NZD/CHF (New Zealand Dollar/Swiss Franc)
- CAD/CHF (Canadian Dollar/Swiss Franc)
- EUR/SGD (Euro/Singapore Dollar)
- GBP/SGD (British Pound/Singapore Dollar)
Forex Trading Strategy Guide
Overview
This guide outlines a layered analysis approach for trading USD-based currency pairs, focusing on trends and technical analysis across multiple timeframes.
Trading Style
- Macro to Micro Approach: Start with a broader view (weekly charts) and narrow down to specific entry points (hourly charts).
- Decision Timeframe: Primary decisions are based on the 4-hour chart, after analyzing trends on weekly, daily, and hourly charts.
Step-by-Step Strategy
Step 1: Macro Trend Analysis (Weekly Chart)
- DXY Analysis: Review the US Dollar Index (DXY) for long-term trend patterns.
- Bond Yields: Check trends in 10-year Treasury bond yields to gauge market expectations for interest rates.
- Key Indicators: Identify major patterns and indicators such as channels, triangles, and head and shoulders formations.
Step 2: Intermediate Trend Confirmation (Daily Chart)
- Moving Averages: Apply the 50-day and 200-day moving averages to confirm the trend direction from the weekly chart.
- Market Sentiment: Use the Volatility Index (VIX) to assess market volatility and potential impacts on the USD.
Step 3: Pre-Trade Analysis (4-Hour Chart)
- Technical Indicators: Utilize the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) to determine momentum and market conditions.
- Fibonacci Retracement: Apply Fibonacci levels to identify potential support and resistance within the trend.
Step 4: Entry and Exit Points (1-Hour Chart)
- Pattern Recognition: Look for candlestick patterns that align with the broader trend for potential entry and exit points.
- Adjustments: Be ready to adjust your strategy based on sudden news and economic events.
Correlation and Risk Management
- Correlation Analysis: Regularly review correlations between USD pairs and related assets, such as commodities and bond yields.
- Risk Management: Define and apply risk levels for each trade, using stop-loss orders based on technical levels from the 1-hour chart.
Continuous Learning and Adaptation
- Trade Review: After each trade, review your analysis and outcomes to refine your strategy.
- Stay Informed: Keep up with changes in market conditions, economic policies, and global events to adapt your strategy as needed.
Notes Section
- [Your Notes Here]: Use this section to record observations, tweaks, and specific conditions that affect your trading decisions.
Expanded Trading Strategy with Indicator Confluence
Overview
This strategy leverages a variety of technical indicators across different timeframes, focusing on creating confluence for more robust trading decisions. The core decision-making process occurs on the 4-hour chart, supported by insights from weekly, daily, and hourly analyses.
Key Indicators and Period Settings
Moving Averages: EMA and SMA
- 200 EMA (4-Hour Chart): Use as a trend filter. A price above the 200 EMA indicates a bullish trend, while below suggests bearish. Adjust to 50 EMA for the daily chart and 20 EMA for the hourly chart for trend confirmation.
- 21 SMA (4-Hour Chart): Aligned with Bollinger Bands for mean reversion signals. Use a 50 SMA on the daily chart to identify medium-term trends.
Bollinger Bands (BB) with 3 Standard Deviation
- 21 Period (4-Hour Chart): Provides extreme volatility signals. Adapt the period to 14 on the hourly chart for closer monitoring of price volatility.
Average True Range (ATR)
- 4 to 6 Periods (4-Hour Chart): Reflects current volatility for setting dynamic stop-losses. Use a 10-period ATR on the daily chart for broader volatility trends.
Relative Strength Index (RSI)
- 14 Period (4-Hour Chart): Identifies overbought (>70) or oversold (<30) conditions. Consider a 10-period RSI on the hourly chart for more sensitivity to immediate price changes.
MACD (Moving Average Convergence Divergence)
- 12, 26, 9 (4-Hour Chart): Default setting for identifying momentum and potential reversals. Adjust to 5, 13, 6 for the hourly chart to capture quicker shifts in momentum.
Fibonacci Retracement
- Applicable to All Timeframes: Use to identify potential support and resistance levels post a significant move. The key levels to watch are 38.2%, 50%, and 61.8%.
Implementation and Confluence Strategy
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Trend Confirmation: Use the alignment of price with the 200 EMA and the position of the 21 SMA within Bollinger Bands to confirm the overall trend direction. Confluence between EMA and SMA trends across timeframes strengthens the signal.
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Volatility and Risk Management: ATR readings inform about the current market volatility, guiding stop-loss placement. A higher ATR indicates a need for wider stop-losses to avoid market noise.
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Momentum and Market Sentiment: RSI and MACD provide insights into the market's momentum. Confluence of overbought/oversold signals from RSI with MACD crossovers or divergences offers strong entry or exit signals.
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Price Reversals and Entries: Fibonacci levels serve as potential reversal points in the context of the overall trend. Entries near these levels, especially when other indicators signal confluence, can offer high-reward opportunities with defined risk.
Notes on Adjusting Periods
- Adjust indicator periods based on the specific timeframe analysis while maintaining the core strategy intent. For instance, shorter periods on the hourly chart can offer more immediate insight, whereas longer periods on the weekly and daily charts provide a broader view.
- Continuously backtest and refine indicator settings to optimize for current market conditions and your trading style.
Concluding Strategy
The goal of this expanded strategy is to use a combination of indicators to identify high-probability trade setups based on confluence. By aligning multiple indicators across different timeframes, the strategy aims to capture consistent, actionable signals that reflect broader market trends, momentum, and volatility.