KG Forex Trend Following Strategy
It is also called bouncing EMA, the price goes up and down based on the trend. This movement will happen after a big news when the price spike.
Forex Indicators and Setup:
- MACD 12,26,9
- Stochastic 5,3,3
- EMA 100 (Red) – Medium Trend
- EMA 200 (Yellow) – Big trend
The strategy:
- Wait for the big news, when the price touches the 50 EMA in a 30 minute timeframe or 100 EMA on a 1 hour timeframe, the price will consolidate and it will go op or down base on the trend.
Here is the explanation:
KG analysis
There is some strict requirement before you’re going to trade:
- Trade AFTER ALL news for these pair is completed
- You can wait for MACD confirmation to cross before going to trade
- Make sure Stochastic is going down
Expected profit you can gain is 30-40 pips from the peak candle. In a 1 hour timeframe, price usually bounces to 70 pips from the peak candle.
Stop loss must be set 25-30 pips.You won’t get hundred pips but WHEN the price bouncing with 50 EMA, the profit usually around 30 to 40 pips from the peak candle, and WHEN bouncing with 100 EMA (1 hour timeframe), the price usually bounce to max 70 pips from the peak candle.
This system can possibly give a 96% winning rate.
If the trend is strong, usually i take profit with 30 pips.
Enter again on a retracement with the reference of the fibonacci. Secure SL.
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