The EX Forex Simple System is a trend momentum strategy that can be used for day trading and swing trading on multiple time frames. With a focus on major and minor currency pairs, indices, and commodities, this strategy uses two indicators – the Arrow and Zone – to provide signals for traders. The Arrow produces the buy and sell signals, while the Zone is used as a filter to minimize fake signals. In this article, we will delve into the workings of the EX Forex Simple System and explore how it can be used to make better trading decisions.
What is the EX Forex Simple System?
The “EX Forex Simple System” is a trend momentum forex trading strategy designed for both day trading and swing trading. It is applicable for major and minor currency pairs, indices, and commodities, with a recommended time frame of 15 minutes or higher.
The strategy utilizes two indicators – Arrow and Zone – to produce buy or sell signals. The Arrow indicator is used to generate signals for the strategy. Meanwhile, the Zone indicator serves as a filter to minimize the number of false signals.
There are two configurations for the strategy. The first configuration is designed for sideways markets and has more emphasis on momentum signals. The second configuration is intended for trending markets. The settings of each indicator can be adjusted to suit different chart requirements.
EX Forex Simple System Strategy
To implement the “EX Forex Simple System” strategy, traders should look for buy or sell signals that appear in the yellow zone of the chart, which is an area filtered by the Zone indicator to minimize false signals. In a trending market, traders should use a Simple Moving Average (SMA) with a value of 33 to determine the trend direction. However, the value of the SMA can be adjusted according to the specific chart being monitored.
To enter a buy position, traders should wait for a blue arrow to appear in the yellow zone, and this arrow should be above the Moving Average. Conversely, to enter a sell position, traders should look for a red arrow to appear in the yellow zone, with the arrow below the Moving Average.
To exit a buy position, traders should wait for an opposite red arrow to appear or for the candle to close below the Moving Average. For a sell position, traders should wait for an opposite blue arrow to appear or for the candle to close above the Moving Average. Traders should set fast profit targets and be disciplined in their exits and risk management practices.
It is essential to note the importance of risk management and to always use appropriate risk management techniques while trading. Overall, the “EX Forex Simple System” strategy is a classic trend momentum strategy that traders can use to identify buy and sell signals in the forex market.
Buy Signal
- Blue arrow appears in the yellow zone, and it is above the Moving Average (33).
- Enter a long position when the above requirements are met.
- Traders should exit a buy position when a red arrow appears in the yellow zone, indicating a possible reversal in trend.
Sell Signal
- Red arrow appears in the yellow zone, and it is below the Moving Average (33).
- Enter a short position when the above requirements are met.
- Traders should exit a sell position when a blue arrow appears in the yellow zone, indicating a possible reversal in trend.
EX Forex Simple System Pros & Cons
Pros
- Easy to use and understand for beginner traders.
- Can be applied to multiple currency pairs, indices, and commodities.
- Provides clear buy and sell signals, making it easy to execute trades.
Cons
- May produce false signals in choppy or sideways markets.
- Relies heavily on technical analysis and may not account for fundamental factors affecting the market.
- Does not provide a specific risk management strategy, so traders need to implement their own.
Conclusion
In conclusion, the EX Forex Simple System is a trend momentum strategy that provides clear buy and sell signals for traders. While it may not be suitable for all market conditions and does not provide a specific risk management strategy, it can be a considerable tool for beginner traders looking to enter the forex market. With the ability to be applied to multiple currency pairs, indices, and commodities, this system offers traders a flexible approach to trading that can be adapted to their individual preferences and trading style.
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