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Such actions usually lead a trader to struggle for a sophisticated and often complex system. Mixed indicators became a natural phenomenon among traders alike. To avoid such hassle, remove the indicators that you think are not too important. Instead of combining signals from multiple indicators at once, you can combine indicators with price action analysis.
When using a reversal strategy, consider the various candlestick formations that indicate a reversal. Candle pin bars for example, can identify the reversal of the body shape and length of the axis. The chart above shows a pin bar that denotes a bearish reversal. The inversion signal to the downtrend is seen on the candle formation which reflects the closing price lower than the opening level. Meanwhile, the upper axis that indicates the high reach of the high upward range exceeds the size of its body. Overall, KISS forex strategy recommends that you stay away from trading like a beginner.
Most of them are trapped in the use of some indicators, because they feel the need to cover the disability of one indicator with other indicators. In order to avoid the trap, get rid of unnecessary indicators and learn how to interpret candlesticks. Just like choosing an indicator, the trading methodology needs to be filtered as best as possible. Following KISS forex strategy principles that prioritize simplicity, we recommend choosing a methodology that suits your understanding and style.
Then apply the simple trading methods of the methodology. For example, if you apply the day trading methodology, then use a simple day trading strategy. If it is compatible with news trading, then run a simple news strategy. Many professional traders, such as Toni Turner for example, have revealed that simplification of strategy is one of the most successful tips in trading.
Keep to this rule to help de-clutter your screen. One of the main benefits of a routine is to structure your trading around certain hours and prevent you from wasting time watching price ticking away meaninglessly. Always keep your analysis clear and concise for your own benefit. How do you determine when it is most important to check your charts? There is nothing more stressful than watching an open position while it is ticking into the negative. Checkpoint There is no need to sit and stare at ticking candlesticks all day. Below is an example of the Asia failed breakout in formation, and generally what I am looking out towards the end of the Asia session….
But in reality, the guidelines are only understood and approved only, without actually being practiced by most traders. As beginners, they will start with a simple strategy. To be honest, are you a trader like that? Nothing forbids a trader to explore the best forex strategy. But know that those who are very experienced and have tried various forex trading system, in general will end up frustrated face its own trading.
In the end, they will clear the trading chart and get back to basics to implement a simple forex strategy.
Well, for those of you who have not felt such experience, would not it be better to apply KISS forex strategy from the beginning? To be successful as a trader, no need to look for forex or system strategy is so complex that it is difficult to understand. Always prioritize simplicity in each of your steps, because after all, a simple forex strategy will be very useful to save time, effort, thought, and your funds.
Your email address will not be published. July 22, July 22, by admin. The four main principles in the KISS forex strategy are: 1. Minimize Support Resistance Recognizing support resistant is necessary, but it should not be excessive in identifying.
The K.I.S.S method, as it relates to Forex trading, is built upon an understanding that the best way to navigate the market is by learning to interpret and trade the. What is Kiss trading strategy? The acronym KISS stands for Keep It Simple Stupid. Other variations are often used like Keep It Short & Simple.
Examples can be seen in the picture below: The easier a chart is read, the more effective the application of KISS forex strategy. Based on the rules, this is my daily trading routine: In the morning, I will monitor the chart to see if there is an important signal in the New York closing session.
Throughout the day, I will do another activity and will just re-monitor the price as the London market starts to wriggle. Specifically, I will look for false breakout signals to find entry opportunities. As per trading ideas, I assume that traders in the London session will push the price down if there is a false break from resistance, or lift the price back up if there is a breakout failure from the support level at the end of Tokyo session.
When the price movement has confirmed my analysis, then I will be positioned entry in H4 time frame and set the exit parameters according to risk management. I will only monitor the chart once every 4 hours to see price action changes in time frame entry.
He invests time and energy into learning the basics and makes a modest return at the beginning. After a few months he compares himself to a forex superstar or reads an ad for a fantastic trading method with guaranteed results. Off he goes, trying to learn ever more sophisticated techniques, tools, and methods.
There is certainly nothing wrong with sophisticated tools or trading methods. The key is to never let go of the fundamentals.
To make a comparison to a more familiar market, stock traders can make endless guesses and extrapolations. However, at the end of the day, their price should match the underlying value of the security. People who lose sight of that are speculators and lose money on average. In the same way, it is fine for a forex trader to use sophisticated, tools of technical analysis , but there are always basic, fundamental realities he should come back to.
First , remember that you are trading real currencies in real countries. Anything that influences the economy of that country or makes a difference in how the market regards it will influence the currency as well. You should not be trading a pair without knowing the basic economic data and current events that apply to both countries. You should also know international ties and the paths for trade revenue. Second , establish a sensible, meaningful strategy and follow it all the time.
You should also have back tested and forward tested your strategy before risking real money, or you should at least have reason to believe that it will be profitable. Most importantly , discipline yourself to stay within the confines of reasonable risk management. You should have stop loss orders on every trade you make and always watch your leverage. You should also establish what amount of money you are willing to lose. Then compare this to your total liability.