CRACKING THE FOREX CODE

Summary:

1. Rules for Buy Signals (Long Trades)

To establish a strong uptrend, follow these three rules:

  • Both EMA60 and EMA15 are pointing upward.
  • EMA5 is above EMA15.
  • EMA15 is above EMA60.

Once these conditions are met, it confirms an uptrend. Next, wait for the price to fall back and touch the EMA60. At this point, enter with two lots.

  • Stop Loss: Set a protective stop loss at -40 pips.
  • Profit Targets:
    • Exit one lot when you achieve 40 pips in profit.
    • Move the stop loss to break even for the second lot and use a 40-pip trailing stop.
    • Adjust the stop loss to 40 pips below the current price each time you gain another 40 pips.
    • Alternatively, move the stop loss to the recent high each time the price breaks that high, allowing you to follow the trend until it ends.

2. Rules for Sell Signals (Short Trades)

To establish a strong downtrend, follow these three rules:

  • Both EMA60 and EMA15 are pointing downward.
  • EMA5 is below EMA15.
  • EMA15 is below EMA60.

Once these conditions are met, it confirms a downtrend. Next, wait for the price to retrace and touch the EMA60. At this point, enter with two lots.

  • Stop Loss: Set a protective stop loss at -40 pips.
  • Profit Targets:
    • Exit one lot when you achieve 40 pips in profit.
    • Move the stop loss to break even for the second lot and use a 40-pip trailing stop.
    • Adjust the stop loss to 40 pips above the current price each time you gain another 40 pips.
    • Alternatively, move the stop loss to the recent low each time the price breaks that low, allowing you to follow the trend until it ends.

By adhering to these rules, you can effectively manage trades and maximize profits while minimizing risks.