Do you want a forex trading strategy that turns into a profit within minutes of entering into a trade? If you are a trader who lacks patience in your trading and want to see your trade turn into a profit within minutes of your entering into it then read on. There are traders who lack patience and can’t see their trade initially go into a loss before turning into a profit.

Have you heard of momentum trading? This short term momentum forex trading strategy will hit the profit target within minutes of entering into a trade.

You will be using the 20 Day EMA, 100 Day SMA and the MACD indicator for this short term momentum forex strategy.

You will be using the default setting for the MACD. These setting are First EMA=12, Second EMA=26 and the Signal EMA=9. You will be trading on the 5 minutes chart.

So here are the rules for this short term momentum forex trading strategy: Open the 5 minutes chart. Look for a currency pair that is trading below the 20 day EMA and the 100 day SMA. Wait for the price action to cross above both the 20 day EMA and the 100 day SMA by at least 15 pips.

Observe the MACD. If the MACD turns positive enter into a long trade within 5 candles of it turning positive. You should place the stop loss at the low of the candle that was the first above the two moving averages.

Take profit on half of the position when the currency pair has moved in favor of your trade by the amount risked and move the stop for the remaining position to breakeven. This is done to make sure that you only trade with your profits for the remaining positions and you are no longer vulnerable to a loss. Trial the stop for the rest of the position with a 20 day EMA minus 15 pips!

In case, the currency pair is trading above both the 20 day EMA and the 100 day SMA, wait for it to trade below both the moving averages by at least 15 pips. Enter into a short trade within five candles of the MACD turning negative. Place a stop loss at the high of the first candle that broke above both the 20 day EMA and the 100 day SMA. Wait for the trade to turn profitable by the amount risked. Exit half of the position and trail the remaining position with a trailing stop with 20 day EMA plus 15 pips!

Mr. Ahmad Hassam has done Masters from Harvard University. Download the Forex Bully Identifier and the Multiplier Indicators FREE. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade.

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Filed under: Currency Trading

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