Content of this Forex trading strategies guide

Forex indicators from this guide – download
1. Going in the right direction
2. Pivot Points Forex Trading Strategy
3. Camarilla pivot points Forex trading strategy
4. Fibonacci trading Forex strategy
5. Pivots and Fibonacci Forex trading strategy
6. DEMA and Fibonacci Forex Trading Strategy
7. Ichimoku Kinko Hyo in Forex Trading Strategy
8. Ichimoku and Fibonacci Forex trading strategy
9. GMMA as a Forex trading strategy
10. Renko Forex trading strategy
11. ATR Trailing Stop Loss as a Forex trading strategy

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Forex indicators from this guide – download

I made a zip file with all indicators and templates for MetaTrader4, described in this guide. You can find them here:

– mt4 forex indicators from this guide – download –

Goal of Forex trading strategies guide

The goal of this publication is to show you various trading tools and strategies so you can select the best tools for you and build your own trading strategy. I believe that too many people try to build a strategy based on moving averages and oscillators. It is an easy way to fail. Do not get me wrong – I use them too, but professionals use also Fibonacci, Pivots and they are ahead of rest.
I show you how I use these tools and give you some example trades (some are real, some are made up because I tried to show different examples). In the end, you have to take what you liked most, test it and build your own trading system.

How to read this guide

Each section about strategy has shorter or longer introduction about current strategy/tool. Later I show you examples how you can use this strategy in practice. Do not scroll the book. Read through examples, examine charts. I tried to select different situations to show you how to react when they occur.

1. Going in the right direction

The biggest problem with Fibonacci trading system (and any other system) is that sometimes it is hard to choose the right direction. You will be at a situation when ABC Fibo pattern fit in both directions. So should you go long or short?

Of course, we will never be 100% right, but the main goal is to be right that 60 to 70 or more percent.

Still, it should be a decision based on the system, not on a guess (even a lucky one).

There are few ways you can increase your odds. In this chapter, you will learn what works. I cover topics like:

  • how to work on few time frames
  • which most important averages should you watch
  • how to use DEMA
  • how to use my custom DEMA indicator as a help
  • how to use Ichimoku
  • how to use Ichimoku indicator as a help

How to work with few time frames

The first thing you can do to decide about trade direction is to check the situation on higher time frames. This is not a new concept. Alexander Elder in his book Trading for a living form 90’s wrote about three window time frames. So to make a trade on a daily chart you also looked at the situation on weekly and monthly. Of course, when you trade Forex or e-minis, there are more time frames, but you can modify this approach.

I believe that trading based on few time frames is the foundation of your success in trading.

First step: you have to decide on which time frame you trade and make decisions.

Sounds obvious, but I can remember many times when I was trading on 5m, but I checked 15m and saw some signal and place an order based on that time frame.

If you are trading on a 5m, then you care mostly about 15m, 30m, 1h and eventually 4h. Daily, weekly or monthly are only to check some long term support/resistance levels.
If you are trading on a 1h, then you care mostly about 4h, daily and eventually weekly.
Second step: check higher time frames

Checklist for higher time frames is as follow:

What is a relation of price to the 100 and 200 SMAs on higher time frames?
Where are support/resistance lines?
Are there important pivot points I should look at?

First, why 100 and 200 SMAs?

In most cases I will pay most attention to the 100 SMA. The reason for that is simple. 100 SMA is closer to the price and price reacts more often with 100 SMA than with 200 SMA. By reacts I mean that average will work as support/resistance. In a strong downtrend, line in the example below, 100 SMA is nearer:

Price and distance between 100 SMA and 200 SMA

1.1. Price and distance between 100 SMA and 200 SMA

You can see that 200 SMA is much higher in the example above.

What to look for?

OK, so before opening a trade you should check higher time frames to see if there is an SMA nearby.

Main reason:

You want to make sure that trend on higher time frames is in the same direction you plan to open a trade.

On this 15m chart you can spot an ABC pattern:

Mixed situation on chart, no clear trend

1.2. Mixed situation on chart, no clear trend

Price is trapped between 100 and 200 SMA. Looks like a candidate to go short, but based on this time frame I am unable to say if the main trend is up or down or if there are no important support/resistance nearby.

That is why you check higher time frames.

If a price on higher time frames is above 100 and 200 SMA (like below) I pass. 1-hour timeframe:

1.3. Higher time frame and indication of an uptrend

1.3. Higher time frame and indication of an uptrend

If a price is below 100 and 200 averages, that means that bears are in charge and I am more likely to take a risk. 1-hour timeframe:

1.4. higher time frame and confirmation of a downtrend

1.4. higher time frame and confirmation of a downtrend

I do not check if there was a cross of 100 and 200 or other averages. I simply check where is a price in relation to the averages and if 100 is above 200 or below.

Where are support/resistance lines?

Higher timeframes let you see easier where important highs and lows are. You also look for triangles, flags, channels and other symmetry on the chart.

If you were long on GBPUSD based on lower timeframe you know that 1.45-1.46 is a take profit area based on that weekly chart:

1.5. Checking for important levels to select exit points

1.5. Checking for important levels to select exit points


Image 1.5. Checking for important levels to select exit points

I simply draw the most important lines and then I switch to the lower time frames to make a trading decision.

Are there important pivot points I should look at?

You should be aware where are daily, weekly and monthly pivot points. When you are daytrading (plan to close trade) on low time frames (1m, 5m, 15m) then you mostly check daily pivot lines.
When you trade on 15m or higher and plan to swing trade then you should check the situation at weekly and monthly.

If a price is above the pivot, then it is possible that trend is up. If is below, the situation is bearish. You should also check if pivot lines do not corellate with Fibonacci lines. You will see more of that in the trading example section.

Using DEMA and Ichimoku indicators as a help

In next chapters, you will see how to combine Fibonacci with other tools. There is also a section about Fibonacci + DEMA and Fibonacci + Ichimoku. I created DEMA indicator which will show you situation at all time frames. I also use Ichimoku indicator which will show you similar information.
You can read more about these indicators in next chapters.