Lompat ke konten Lompat ke sidebar Lompat ke footer

Short Term Trading Strategy

Being a trader means that you have finished getting bonus income from different currencies that are being traded. However, have you decided which trading strategy is perfect for "searching"?

In the world of forex trading, trading strategies can be determined based on many views, ranging from determining the time frame, the type of analysis used, to the method of reading charts. But when observed in the usual way, the majority of traders prefer short-term trading strategies, other names are short-term. The type of trader who usually wants to get clear on profits and losses as soon as possible. That way, short-term traders tend to be "active" for position entry within one day, because the trading principle is "a little as long as often".

Well, if you are tempted to try this short time trading strategy, then the strategy you can take advantage of is to use short time momentum. There are 3 types of technical markers that you need to use to carry out this strategy. What's right?

Markers Supporting Short Time Trading Strategies

Although there are many types of technical markers, you should install these 3 meaningful markers for successful trading on small time frames:

1. Simple Moving Average( SMA)

The SMA marker is also known as the Moving Average which is commonly used today. This marker is one of the hopeful tools for newbies, because its use is simple but multifunctional. Generally, SMA is used with a 200-Day time range setting (SMA-200) as a far time reference. But in short-term trading strategies, the recommended SMA is the SMA-100 to confirm the accuracy of open positions according to trend goals.

2. Exponential Moving Average (EMA)

The EMA marker is the second most popular version after SMA. Usually, traders use these markers to estimate volatility on small time frames, especially when releasing large impact information. Unlike the SMA markers, the EMA uses a formula where the price on the last candlestick is more influential. In relation to short-term trading, the EMA timeframes used are the 20-Day (EMA-20) and 10-Day EMA (EMA-10). The EMA-20 is useful for identifying the movement of the most recent chart momentum, while the EMA-10 can be used for day trading.

3. Moving Average Convergence Divergence ( MACD)

The arrival of trading marks indicated by style markers often creates doubt for traders. For that, we need a tool that can confirm the sign in a more precise way, for example the MACD marker. Basically, you can add MACD markers in short time trading setups as markers of market trends and momentum. Also, MACD is also used to sort out fake signals, as a result, the risk of wrong entry continues to be small.

If the three types of markers above are combined, the shape will appear the same on the following EUR or USD chart:

Setup Entry for Short Time Trading

In using a short time trading strategy, you can quote entry positions (BUY or SELL) based on this next setup:

  1. Set the time frame using M5 to M30.
  2. Add markers EMA-20, SMA- 100, and MACD in the chart pair that you are trading.
  3. A BUY entry can be obtained if there is a crossing between EMA-20 to SMA-100 from bottom to top, and MACD is in the positive zone.
  4. On the other hand, if the crossing between the EMA-20 and SMA-100 occurs from top to bottom and the MACD histogram is in the minus zone, then you can get a SELL entry.
  5. Make sure the Stop Loss and Take Profit levels match your risk management settings.

When applied to the chart, you can observe the BUY or SELL entry script on the following AUD or USD chart:

Posting Komentar untuk "Short Term Trading Strategy"