Forex Guidelines

Guidelines to creating own Forex trading system.

There are several things we want to achieve when creating Forex trading system:

1. Find entry points as early as possible.
2. Find exit points securing maximum gains.
3. Avoid fake entry and exit signals.

Choosing your Time Frame

This is the first step, where you will need to answer yourself: how many hours you want to dedicate to trading? Would you prefer sitting in front of the monitor constantly for several hours trading short (5, 15, 30 minutes) time frames that would require constant market monitoring and quick reaction to price moves OR you would be more comfortable with setting up your charts once or twice a day and never turn your monitor on during the rest of the time?0

Choosing Trading Tools

There are plenty of trading tools and indicators available to Forex traders, but not all of them could give the fastest signal about upcoming trading opportunities. And traders’ goal, of course, is to get into the trade as early as possible and take maximum advantage of price moves.

Choosing a currency pair and finding its active trading hours

Currencies have their own “characters” or behavior. Some are extremely active like GBP/USD or GBP/CHF, some are quite consistent and steady trending like EUR/JPY or EUR/GBP.

Different indicator set-ups, different values may be used to achieve best results for each currency pair
Also a good idea is to find the most active hours for a chosen currency pair. Those hours of currency highest activity are easy to spot on the chart and should be used to get maximum profits during the trading session.