Forex Trading System

Profitable Trading System
Open any chart for any currency pair, any time frame. I will use EUR/USD 1H as an example.
Next, attach Bollinger bands and OsMA indicators. Default settings for both.
What we are going to use here is a classic trading method called Divergence trading. divergence simply happens when the indicator and price are going in opposite directions.

The indicator we are going to use for Divergence is the OsMA indiactor.

To avoid false Divergence signals, we are going to use Bollinger bands. Valid signals are only the ones that happens when price hits overbought – oversold levels of Bollinger bands.
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When that happens we should know that price will reverse. In the above example, price was going up. So we are waiting for a sell signal. If price was going down, that means we are waiting for a buy signal.


Entry Rules –
Buy signal :

1 – Divergence
2 – Price hits Bollinger band’s oversold levels

Entry signal:
1 – when price starts to reverse up from the oversold level
2 – OsMA forms a new bar above 0 level.

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Entry Rules –
Sell signal :
1 – Divergence
2 – Price hits Bollinger band’s overbought levels

Entry signal:
1 – when price starts to reverse down from the overbought level
2 – OsMA forms a new bar below 0 level.

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Stop Loss :Last support/ resistance level.
Target :You have the choice to exist your trades when ..
1 – price hits the opposite Bollinger band’s level Or
2 – an opposite signals is generated

This system works great on 15M time frames and higher. Not recommended for smaller time frames.
The system is not to be used with major news releases.

It’s not the holy grail, but it’s a very good start. Try it and remember that practice makes perfect.

----- by ; Forex Warlord -------