I want to show you a method of making at least a minimum of 40 to 50 pips and above consistently through a unique combination of Moving Average Indicators. This trick has worked for me 90% consistently.
Skip the nitty gritty and go straight to the summary tips
Skip the nitty gritty and go straight to the summary tips
Before I explain how it works I’ll show you some proofs.
SCENE 1: – Pending BUY order at 1.55724 and Pending SELL order at 1.55243. Take Profit at 1.54585.
See what happens next below:
Price breaks the sell pending order at 1.55243 and made more than the minimum 40 to 50 pips.
SCENE 2: – Pending BUY order at 96.950 and Pending SELL order at 96.395. Take Profit (BUY) at 97.965.
Once again price breaks the BUY Pending Order at 96.950 and makes over 40 pips plus.
SCENE 3: BUY Pending Order @150.450, SELL Pending Order @149.735 & Take Profit @151.640. Got more than the 40 to 50 pips when price broke the BUY pending order @150.450.
BRIEF ABOUT THE TRADING SYSTEM
What if you knew a particular place or location that something must occur irrespective of the circumstances? What if you had a tool that can tell you exactly where this place or location is? If you knew and had such a tool I bet you’ll definitely reap a lot of fortunes from it.
Now imagine you knew a certain area in the market where something must occur apart from the news release! Also imagine you had a tool that would not only inform you of that place but also help you to take advantage from it. This is what this system is all about.
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HOW THE SYSTEM WORKS
The system works similar to the breakout method only that it uses the moving average indicators for its breakout mechanism. When price gets to the decisive moving average indicator it is 95% likely that a reaction would occur.
SETUP (M30 Chart)
INDICATORS: 200 SMA (Thick black line), 26 EMA (Red line), 10 SMA (Green Line), *RVI (Optional)
CHART: 30 Minutes chart is recommended but you can explore other timeframes.
PROFIT TARGET:
40 to 50 Pips. This can be extended but not more than 100 pips at a
trade. If you want to extend the profit range then contact me for My
Advanced Method.
- Open any chart and place a 200SMA (apply to close) on the chart. Format the indicator to be bolder than the rest indicators.
- Place a 26EMA and 10SMA (apply them to close price). The 26EMA should be in red color and 10SMA should be in blue color (you’re free to use your choice of color). The 26EMA and 10SMA are not too important but they serve as a guide to extend the profits beyond 50 pips.
Step 1:
When price gets close to the 200SMA be very watchful. The 200SMA is very good at dividing the BUY Region from the SELL Region. When price crosses over the 200SMA it means a trend in that direction of the cross would last for a very long time ranging from days, weeks, and months before an opposite cross would occur. So when price gets closer to the 200SMA, it is 99% likely that a major shift or reversal would occur (this is the reaction). Sometimes a shift occurs and most times it reverses and continues in the previous trend direction. We lay the trap with our BUY and SELL pending orders when price is getting close or moving along like a channel within the 200SMA line or crawling in between the 200SMA line in a sideways pattern. We set the within this area because a definite action MUST OCCUR SOONER OR LATER (i.e. price must break out from the 200SMA line and continue or form a new trend).
Step 2:
Plot your 26EMA and 10SMA. They are more useful for the advanced method. When both indicators cross over the 200SMA line it means a very strong trend would occur in that direction.
Step 3:
Market is never static all the time so watch out for price getting close to the 200SMA indicator. When price is closely approaching or has approached or is resting on the 200SMA line then set pending orders either 5 pips away from price or a bit higher or lower than the 200SMA line. See illustration below.
Looking at the circle in the picture above, price approaches the 200SMA, crosses below it but doesn’t go further and then goes back again to the 200SMA, hovers around it, and looks indecisive in regards to the next direction it should take. Looking closely again you’ll notice that price is HOVERING BETWEEN 1.53515 and 1.53355. You can see that price seems to have bounced from the 200SMA several times and has not broken out of it to a definite direction. The system here has clearly informed us of a price trap, which is what we need to place our order.
The chart below illustrates were we place the BUY STOP & SELL STOP pending orders.
The orders should be placed in such a manner that price is safely trapped inside both orders waiting for a breakout to occur. The green star at 1.53835 indicates a place where the BUY pending order should be set. It is in a safe distance but will reduce our potential to make the minimum gain. The green star close to 1.53675 is another better position to set the BUY pending order. Either position is okay for the BUY pending order. The red star at 1.53355 is the best position to set the SELL pending order.
CAUTION: The pending should be modified as the market progresses. The essence is to keep price trapped within the order and the 200SMA. Always set the pending orders under or above the highest or lowest candle.
Take Profit should be within 40 to 50 pips on both sides. Stop Loss should be above or below the opposite 200SMA line.
Let’s see more examples of how to setup the system;
Looking at the chart above, price approaches the 200SMA, crawls around it showing no sign of breaking through the 200SMA line, and hovers between 96.700 and 96.395. This is a trap. We set pending orders at this area where price is crawling along the 200SMA and wait for an eventual breakout. Few hours later, price finally breaks out of the trap, hits the BUY pending order and goes further than the minimum 50 pips.
Let’s see another example.
There are three circles labeled with alphabets A, B, & C indicating where the system gave us signals to trade. Price started crawling or moving sideways from the bigger circle A and showed intensity in circle B. Circle B is the best area to place pending orders because the candles crossed the 200SMA line a bit and remained indecisive.
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SUMMARYDon’t forget that the pending orders must be placed a little
 We have observed after years of
studying the Forex Market that price MUST REACT AT A CERTAIN PLACE IRRESPECTIVE OF THE CIRCUMSTANCES (i.e. when price gets to this location it MUST either move ahead, crossover or reverse 40 to 50 pips minimum). Our system helps to detect this location and take advantage of them. See the steps on how to setup the system and trade with it.
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