Forex 30 min chart strategy

A Simple Scalping Strategy For Forex Breakouts.

by Walker England.

Forex Scalpers can take advantage of short term breakouts in price. Traders may use a 30 minute chart to identify support and resistance levels. Entries can be set above/below key levels of support or resistance.

Once a strong trend is founds, Forex scalpers can use a variety of approaches for entering new orders. One of the most useful methodologies for trading short term moves is through the use of a breakout strategy. Today we will examine tips for trading breakouts and placing entries to take advantage of short term Forex moves.

A good candidate for breakout trading this week is the USDCHF currency pair, which will act as today’s example. The USDCHF has consistently made a series of lower lows over the past week and has declined as much as 238 pips through yesterday’s low at .8939. Traders looking for breakout entries for scalping will look to take advantage of this downward price momentum, in the event the pair moves to lower lows.

Learn Forex: USDCHF 4Hour Trend.

(Created using FXCM’s Marketscope 2.0 charts)

In a strong downtrend like the USDC HF, traders will take opportunities to sell breakouts as price moves to lower lows. Support can be identified as a price floor and a place where a currency is propped up on our chart. For scalpers looking to trade breakouts, I recommended turning to a 30minute chart to find these levels as depicted below. The key to finding support is through connecting a series of lows through the use of a trendline. Once this line is drawn, traders will wait for price to break through the declared pricing level before placing new orders.

The easiest way to trade breakouts is through the use of entry orders. Entry orders should be placed underneath support which resides under the previously identified low on the graph. This way when price breaks through support traders will have an entry order pending execution. While writing this article, the USDCHF began moving through the previously established line of support at yesterday’s daily low of .8939. Traders setting entries under this price, would now be entered into the market with the expectations that price will continue descending toward lower lows.

Learn Forex: USDCHF Breakouts.

(Created using FXCM’s Marketscope 2.0 charts)

As you can see breakouts are an effective way to approach short term entries for Forex scalping. However, it is important to note that false breakouts can and will occur! Traders should always prepare for price moving against their entry through the use of a stop order. Normally the previous line of support will be considered a new point of resistance. Stop orders can be placed above these values so all sell based positions are exited in the event price attempts to break upwards to higher highs.

---Written by Walker England, Trading Instructor.

To contact Walker, instructordailyfx . Follow me on Twitter WEnglandFX.

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30 Min Forex Trend Following Strategy.

A trend following strategy for beginners with only 2 indicators. It works best on the longer time frames starting from the 30 minute charts and above.

Indicators: MACD_OsMA (12,26,9), Robby DSS Forex (8,8)

Preferred time frame(s): 30 min and above.

Trading sessions: Any.

Preferred Currency pairs: All.

In the picture above, we had 3 entry signals: 2 sells and 1 buy (still open) for a total profit of 80 pips. Click the chart to enlarge.

Wait for the MACD_Osma to cross back up ( gray line above the red line) Robby DSS Forex blue dot.

Open buy trade. Place your stop-loss below the previous swing low.

Price objective method 1: take profit at 40 pips (30 min chart)

Price objective method 2: take profit at round numbers (i. e. 1.3020, 1.3030,…) for at least risk-to reward 1:1.

Wait for the MACD_Osma to cross back down ( gray line below the red line) Robby DSS Forex red dot.

Sell the pair! Place stop above the previous swing low.

Price objective method 1: take profit at 40 pips (30 min chart)

Price objective method 2: take profit at round numbers (i. e. 1.3020, 1.3030,…) for at least risk-to reward 1:1.

Important: Please use larger targets on the longer time frames, for example, at least 80 pips on the 4H time frame.

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Advanced system #16 (30 min ATR breakout)

Submitted by Edward Revy on October 25, 2010 - 15:09.

Time frame: 30 min.

Currency pair: any.

EMA 14 set on ATR 14.

i-FractalsEx: period 3, max bars (500 or any other number - it doesn't matter here).

Steps to set EMA14 over ATR 14 properly:

a. put ATR on the charts as usual.

b. from the Navigator window (on your left) drag Moving Average on ATR and in the settings make sure to put:

- MA method: Exponential.

- Apply to: Previous Indicator's Data.

To take a trade when the market prepares to accelerate.

This happens in a distinctive cycle where slow conditions by the end of the day (end of the New York session, through the Asian session) are changed by a fresh morning session (right after 00:00 EST).

ATR will help us to anticipate and prepare for that exact moment where the market is about to accelerate, while we'll focus on preparing a breakout range to catch the move.

When ATR is reading above 14 EMA - the market is active - that's where we want to be trading.

When ATR is resting below 14 EMA - there isn't much activity going on - that's where we don't need trade.

Use Fractals to set a breakout range.

Set a pending order above and below the range when ATR approached the 14 EMA from below and is about to cross (approximate timing here).

Preparing for the first trade:

- Find the last occurrence where ATR went below 14 EMA.

- use colored fractals from iForexEx indicator to create a breakout range. Use only those colored fractals that fall withing the period where ATR is below 14 EMA.

- if there are several same color fractals found, use the most distant ones - those that will create a wider range.

- when ATR approaches the 14 EMA from below and is about to cross (it's always an approximate timing, rather an anticipation, but you'll learn to identify it quickly after a few days), set pending orders above and below the range. One of them will be triggered on the breakout.

- SL - the opposite side of the range.

- min TP target = the width of the range, after that you can:

a. keep a position as long as ATR is rising and its above 14 EMA.

b. close when ATR goes below 14 EMA.

c. if you took partial TP or have a second order in place, you can keep them running for the rest of the day, even when ATR goes below 14 EMA until ATR falls to 0.0014, after that initiate a trailing stop and let it close with a stop.

That's the strategy. Hope you like it.

Great method and idea.

I have a question though. how do I save your article for future reference?

I tried right click but unable to select and save.

Good Method Edward i must say, will start testing it from tomorrow.

Can i trade it anytime, when ATR goes below EMA during whole trading day?

Here are rules what i observed:

1: Mark the range when ATR cross below and is below EMA, and mark the high and low of range.

2: When ATR is near to break above EMA set pending orders at High/Low of range.

3: SL other side of box.

4: TP 1st size of range. 2nd when ATR cross back below EMA. 3rd When ATR goes below 0.0014 set trailing stop.

Where can i find iFractals indicator. can i use simple fractals?

Please make Template.

I tried to put 14EMA on ATR 14 window but my platform is not allowing me to paste both indicators combined. How can i fix it?

sorry, forgot to add the indicator: i-FractalsEx. ex4.

copying of the content is not encouraged, sorry about that. It's a necessary measure to prevent copyright violation. Unfortunately, because of known copyright abuse (which is a common issue for many online resources), the good traders also have to adjust to new conditions.

Ideally, it should be the beginning of the trading day - before 4-6am EST. Any new entry signal that comes after 12 noon should be ignored.

I support your rules. There is plenty of opportunities to take advantage of using ATR+EMA.

You can definitely use regular fractals. What the i-Fractals does, it excludes/deletes certain fractals according to the period set, so that you see fewer fractals on the chart.

if you use MT4, you'll succeed by following the steps given above: "Steps to set EMA14 over ATR 14 properly"

If, however, you have another platform, then it depends on its functionality. It's better to ask your broker if such feature is available.

I have some more questions :)

1. Sometimes ATR just touch the EMA and turns back below so how to ignore this move, candle can easily hit our pending order.

2. Can we take entry when candle close outside of box as a conservative approach?

3. What if we dont get high or low ifractal arrow for range box?

Where can i discuss my chart setups with u.

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Strategy Series, Part 7: Trading Forex Ranges.

by Walker England.

Look for Ranges When Trends Stop First Find Support & Resistance Use OCOs Near Key Charting Values.

While trending market strategies are always a popular, traders should have a plan when markets fail to trade in a singular direction. This way instead of being deterred by sideways price action, traders will have a plan in place to adapt to present market conditions. To help with this process, today we will continue our conversation on strategies, by reviewing the “SRTS” range trading strategy. Let’s get started!

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Learn Forex – EURUSD 30 Minute Range.

The first step of any range trading strategy is to find the range. This can be done by identifying key values of support and resistance on your chart. To begin, add a 30 minute chart to your screen, which includes a minimum of 1 weeks’ worth of price data. Resistance is your price ceiling and can be found by connecting 2 or more price peaks on your graph. Next, identify values of support by connecting a series of swing lows. These areas may not line up to the pip, but remember to draw these lines as parallel as possible.

Above we can see a sample range on the EURUSD currency pair. After looking at a weeks’ worth of data, support is found by connecting a series of lows near 1.1275. Resistance is found overhead by connecting a series of swing highs near 1.1350. These points create an active 75 pip range, which will become the basis for today’s strategy. It is important to clearly identify these points prior to moving forward to the next portion of this strategy.

Learn Forex – EURUSD Range with Entry and Stops.

When trading an active range, it is always important to plan your entry as close to a support or resistance value as possible . The “SRTS” range strategy uses an OCO ( one-cancels-the-other) ) order to achieve this task. The idea behind this type of placement is to set one order to execute a sale at resistance, while another pending order, to buy the market, resides at the corresponding value of support. This way, if price is trading in the middle of the range you will be prepared to buy or sell regardless of the direction of the market.

Above we can see a sample range setup developing on the EURUSD. An OCO order would be set looking to sell the EURUSD at 1.1350. Conversely a buy order would be set to enter the market at 1.1275. With price currently in the center of the range, a move to resistance would execute the pending sell order while canceling the buy order below at support. If instead price first moves to support, the pending buy order would be executed while the sell entry at resistance would be canceled.

Learn Forex – EURUSD with Sample Limit.

Stop and Limit Placement.

Just as trending markets can come abruptly to an end, so too can ranges. Eventually when price breaks from its range, any existing trades should be closed. When initiating a buy order, stop orders should be placed above resistance. Any easy way to determine the exact placement, is to take half the value of the range in pips, and add this to the top of the range. When buying support, stops can be managed in the same way; subtract half the range in pips from support, to find your final stop placement.

When it comes to profit targets, basic range trading strategies will use a standard 1-2 Risk:Reward ratio. This means that you limit placement should look for twice the amount of pips relative to your stop. For example, if a sample range has a 100 pip range, a minimum 100 pip profit target is suggested along with a 50 pip stop.

This “SRTS” range trading strategy is just one installment of an ongoing article series on market strategies. If you missed one of the previously mentioned strategies, don’t worry! You can catch up on all of the action with the previous articles linked below.

---Written by Walker England, Trading Instructor.

To contact Walker, instructordailyfx . Follow me on Twitter WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your information.

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