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Seminar Series: Trading Team meet up Created by Tunia Paul University of Hertfordshire Trading & Investment Society 2013/14
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Daily SMA Pairs to trade – Any Timeframe – Daily Indicators – SMA 6, SMA21 Set up: - If SMA 6 crosses below SMA 21 then sell - If SMA 6 crosses above SMA 21 then buy - Stop goes above / below previous swing high / low. Remember that the number shown is in points, so you have to multiply the pips by 10. For example if you need 50 pips you have to type 500. - Once in trade either manually move stop to new high / low - Close trade and reverse position if SMA crosses back over. Risk Management: Risk no more than 5 % of your Account
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5 min EMA cross Pairs to trade – EUR/USD Timeframe – 5 min Indicators – EMA 10, EMA 25, EMA 50 Set up: - If EMA 10 crosses through EMA 25 & 50 to the downside then sell. - If EMA 10 crosses through EMA 25 & EMA 50 to the upside then buy. -Stop goes above / below previous swing high / low. -Once in trade close as soon as 5 pips in profit. -Close trade and reverse position if EMA crosses back over. - Works best between 6.30 – 8.30am. Risk Management: Risk no more than 5 % of your Account
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30 min SMA 50 + RSI Pairs to trade – EUR/USD Timeframe – 30 min Indicators – SMA 50, RSI 9 Set up: - If a 30 minute candle closes below the SMA 50 and RSI is above 50 and pointing downwards then sell. - If a 30 minute candle closes above the SMA 50 and RSI is below 50 and pointing upwards then buy. - Stop goes above / below previous swing high / low Risk Management: Risk no more than 5 % of your Account
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Support and resistance Support levels represent floors where traders tend to buy. Traders tend to buy at support levels due to low a low price on a currency pair. Resistance levels are sell opportunities and represent ceilings. Sellers tend to sell in anticipation of the currency pair decreasing in price. The more contact with support and resistant levels the stronger the stronger the support and resistant levels tend to be (view the image below) When trying to find support and resistant levels it is important to confirm them by finding at least 3 points of contact. Once a support level is broken in a downtrend, it often turns into a resistance level in and vice-versa.
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Confirming Support and Resistance Support and resistant levels are stronger when confirmed on longer time frames you should start doing your analysis on longer time frame then reduce to a shorter time frame and confirmed there also. Once confirmed on both time frames look for a good entry point on the shorter time frame. For example find support and resistant levels on a 4hr time frame then reduce to an half an hour time frame and buy in to a trade. If you are trading in the direction of the trade that is approaching a support of resistant's line you should reduce your stop loss in order to protect profit and in the case of a price reversal
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Trend Lines Trend is a term used to describe prices moving in the same direction over time. When prices are generally rising, this is known as an uptrend, and when they are falling, this is a downtrend. Prices tend to trend only 20-30% of the time, which means that the remaining 70-80% they are trading in a range or without a clear direction. Drawing a trend line on your chart can help you see the trend and decide when to enter or exit a trade. To draw an uptrend line you need to connect at least three lows (see image below). For a downtrend line you need to connect at least three highs. (see image below). Draw the lines through the edges of congested or busy areas rather than the extreme high or low points. If a trend line can be drawn using the body rather than the wick of a candle, the body should be used. The extreme points are still important as highs and lows, but are not that useful for trend lines. The breaking of a well-established trend line may signal the trend is changing direction, Note that a trend line break is only valid if the candlestick closes on the other side of the line.
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Confirming Trend lines Start by checking for a trend on a shorter time frame, and once you identify it, carry out the same check on a longer timeframe. For example, if you conrm a trend on the 30 minute chart, look at the 4 hour chart and also conrm it there. If you get conrmation, go back to the shorter time frame and look for a good entry point. if you identify an uptrend it is safer to buy, and if you nd a downtrend, it is safer to sell During an uptrend, if the price reverses down and dips below the most recent low, then it may be a sign that the uptrend has broken. Similarly, if during a downtrend the price bounces up and rises above the most recent high, the downtrend may have come to an end (see image below)
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Team strategy Choose 4-5 currency pairs you want to trade consider the spread and demand for the currency's Before trading your pairs look at the currency pair on your mt4 account in the form of a graph and place your indicators for example support and resistance Then look at fundamental news that has come out on that day and what is expected to come out the following day Decide whether to buy or sell your currency pairs and ensure you place your stop loss and profit trap. Use your trade dairy for every trade you place
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Team strategy No risking more than 5 % Every member should try all of the strategies mentioned once a month within their 15 trades per month and try to use other indicators you understand such indicators such as support and resistance and trend lines. Profit and loss statement need to be sent to the societies email address on the on the 25th of every month. Make sure youve signed up to easy forex through our link and download the MT4 account in order to gain your 200 pound risk free trading. Cash price and internal reward Trip to Bloomberg
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Thank You Make sure you have signed up with the society at the students union office to enjoy the benefits of membership. Contact via email: uh_trading-investment@outlook.com Come along to other seminars in the UHTIS Seminar Series to find out more about the financial services industry. Created by Tunia Paul University of Hertfordshire Trading & Investment Society 2013/14
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