Of course, as such, there is no graduation of Forex strategies for beginners or professionals. But some strategies are simpler for perception: the signals appear rarely, but neatly, the strategy does not exhaust the trader morally and emotionally. In simple strategies there are no many indicators and there is no need to look for how to remove noise or get confirmation of a signal. Forex strategy for beginners can also be used by a professional – everyone likes something different.
i4_DRF indicator: we study a simple Forex strategy
The i4_DRF indicator is better known to MT4 lovers in its second version, which is called V2. This is a trend tool that calculates the rise and fall of the closing price. Its formula is: 100 * (Rsum – Ssum) / period, where:
- Rsum – the number of candles that show price increases;
- Ssum – the number of candles that show a decline in prices.
For the first time, the indicator code was published in March 2008. With its help, a trader can track patterns in price dynamics that cannot be seen visually. The display of the indicator on the chart can be compared with an oscillator – it also shows overbought and oversold zones. This is logical: the higher its value, the greater the Rsum and the greater the likelihood of a quick trend reversal. True, here in this moment lies the secret of the strategy – the more accurately the level of trend reversal is guessed, the greater the chances of earning.
- timeframe – M15;
- currency pair – EUR / USD.
The investor indicator settings are not interested – they are embedded in the code and you don’t need to change anything in them. Forex strategy for beginners is extremely simple – to capture the moment on the chart when there is a strong signal.
Conditions for opening a long position:
- time interval for trade – 07.00-19.00 Eastern European Time (EET);
- i4_DRF draws a flat line at the level of -10 for at least 10 candles. The line should be as horizontal as possible, there should be no attempts to go above the level of -10;
- i4_DRF breaks level -10 and goes up.
At the next candle with a stop-loss of 7-10 points we open a deal. The target profit level is 10 points.
Conditions for opening a short position:
- time interval for trading – 07.00-19.00 EET;
- i4_DRF draws a flat line at level 10 for at least 10 candles. The line should be as horizontal as possible, there should be no attempt to move below level 10;
- i4_DRF breaks level 10 and goes down.
The number of signals is not very large, because this tactic can be called a strategy for the patient. It is important to be able to distinguish the false sample from the main one. In some cases, the length of a horizontal segment of 7-8 candles is allowed. In which – this can be seen at earlier periods and for each currency pair the situation may be different. Forex strategy for beginners does not give a lot of profit, but instead it teaches us to monitor the market and correctly perceive its signals. If you could not download the indicator on the Internet or install it, write about it in the comments and we will send you a template by email.