Forex Daily Chart Trading System

Daily Chart Forex Trading Strategy for Non Day Traders

This Daily Chart Forex Trading Strategy is a very simple Forex trading strategy that beginner Forex traders will find easy to use. If you lot retrieve that trading the daily chart fits your lifestyle better than intra-day trading, take this trading strategy for a spin

Daily Chart Trading Setup

Currency Pair: Any
Timeframe: Daily
Forex Indicators: stochastic indicator required with default setting(v,3,iii)
Fibonacci: Retracement tool
Candlesticks : Knowledge of reversal candlesticks

Did y'all know that a daily nautical chart trading system has a lot more advantages than trading in much smaller timeframes?

Trades are less frequent which ways yous don't over merchandise
Less market noise involved in the daily timeframe compared to the 1 hr or the xxx min and much more lower timeframes.
The trading signals tend to be much more reliable every bit well.
Much bigger profit potential.

The end loss would tend to accept a large distance because it is based off the daily chart.

Does that mean you lot risk is huge?

Yes….and no.

Your run a risk should be fix with an eye towards a percentage of your trading upper-case letter. In Forex, nosotros have many variations of lot sizes we can trade so while the protective finish in pips may be large, it tin can still be a modest percentage of your chance majuscule.

Background OF TRADING OFF THE DAILY Nautical chart FOREX TRADING STRATEGY

We all know that a market volition trend and consolidate. It will echo this over and once more. An uptrend volition eventually turn into a downtrend and the opposite is also truthful.

In between a full blown trend change, we will go cosmetic moves and that is what this simple daily chart trading strategy wants to capitalize on. We desire to see cost meet up with one of our Fibonacci levels and confirm with our stochastic oscillator.

RULES OF THE DAILY Nautical chart FOREX TRADING STRATEGY

The rules are quite uncomplicated and this is a pretty piece of cake Forex strategy that you should be able to replicate. Just follow the trading instructions listed below.

FOREX DAILY CHART TRADING STRATEGY

The Forex pair was in a downtrend and nosotros used an objective trend mensurate – a pause of a tendency line
Nosotros as well had cost take out a previous loftier which starts to set the phase for an uptrend
In one case a high is in place, we can draw our Fibonacci retracement levels
Toll pulls back to the 61.8% retracement level and puts in a beautiful price activity reversal candlestick
Stochastic was just in an oversold zone and so this is a valid trade and we place a purchase finish trading order at the high of the reversal
Take profit was a main swing loftier in the opposing market trend. This gave a 4.56 advantage to risk ratio.

ADVANTAGES OF THE DAILY Chart FOREX TRADING System

This is one of those Forex trading strategies that has the potential to give you over 100 pips a day due to information technology being a larger time frame trading system
We don't accept to worry almost random fluctuations in price or news releases that will affect twenty-four hours traders.
The daily trend carries more weight than an intra-twenty-four hours trend and so you have the benefit of having wrong footed day traders propelling your trade
I call up it is a pretty easy Forex trading system that y'all tin can acquire pretty apace.

DISADVANTAGES OF THE DAILY CHART FOREX TRADING Arrangement

I wish I tin tell you that this is a holy grail Forex trading strategy but I tin can't…all trading strategies will suffer due to inherent weaknesses and for this system is a non trending market.
This volition not appeal to traders who need constant trading activeness.
Some traders may not similar stops that are in the 50-100 pip range.