|Welcome to currency trading with Profiforex!
The basis of the strategy is to study the price movement on several timeframes at once.
The decision-making process is divided into several stages, in which we consider different instruments.
|At first the "middle" screen is selected. Its size corresponds to the average duration of your order. Usually the four-hour or one-hour chart is selected.|
Since the four hour chart is a medium-term chart for us, we'll select a day chart as a long-term chart and the fifteen-minute chart as a short-term chart.
Let's place all three charts on the same desktop.
|We'll begin our analysis with a long-term day chart. Our first task to identify the long-term trend.For us, it will be the direction of opening the deal. Since it's a trend system, we trade only in the direction of the main trend.We can identify the trend in various ways. For example, we can use one or several moving averages.|
|Or, we can use MACD diagram,|
or any other tool. Now we see the uptrend.
Let's switch to the next, four-hour screen. Here we detect the movement against the main trend. In order to do this, we use any oscillator, such as Stochastic. We see that in a certain moment the oscillator detects the oversold area compared with the main trend. This is the entry point for opening a deal.
|Let's point out the time when this situation happened on the chart. As you can see, Stochastic goes to the oversold area when the main trend is upward.|
The third screen is the choice of the exact moment for opening the deal. Usually, this is the screen without indicators, where the pending orderis placed to open the buy deal at the moment of breakout on the support or resistance line is placed.Let's point out this moment on our fifteen-minute chart.
Here, according to the triple-screen system, we should have bought the currency pair.The triple-screen system is a very powerful, proven earning strategy on the Forex market.However, you should understand that this is only the frame that should be added and adjusted by every trader to suit his or her own needs.Remember that without hard work it's impossible to succeed in trading on the Forex market.