Day trade setup is very simple and profitable trading strategy. If you use this trading strategy with proper understanding you don’t need to use any other strategy.
I use this setup in day chart. You can use it 30 minute to weekly chart. But I recommend use this setup in trending market like eur/jpy, usd/jpy, aud/usd etc.
If you want to open buy then follow these rules
- MACD should be above the 00 line.
- RSI must be below 70 line or above 30 line.
- Candle must be close above EMA area.
- Red or blue EMA must be clear in the chart. ( not covered by other EMA)
If you want to open sell then follow these rules.
- MACD should be below 00 line
- RSI must be above 30 or below 70 line
- Candle must close below the EMA area
- Red or Blue EMA must be clear in the chart.( not covered by other EMA)
- Stop loss should be last turning point.
- Stop loss should be below 201 pips in day chart.
- You can give Take profit at 1 to 3 or 1 to 2 ratio ( by that I mean if you sl is 150 pips you can set 300pips tp this is 1 to 2 ratio ).
- Or you can close trade when candle close inside the EMA area .
- When EMA is not clear don’t open trade
- When a large candle come don’t open trade. (in day chart large candle mines above 300 pips candle )
Forex Day Trade Setup Is A Very Simple and Profitable Highly Trading Strategy. But generally speaking, you shouldn’t risk more than 5% of your trading account at any time for any reason. If you are using manual money management ( lot size ) then please make your calculations carefully and use the correct lot size for your account.