Free Forex Buy Sell Signal Trading System

My Forex Buy Sell Signal Trading System

It may surprise you, but one thing that I’ve learned by trading the global currency markets is that the best trading methods are actually very simple.

You don’t need to fill up your forex charts with a hundred different technical indicators, in fact this will only confuse you.

My trading system only uses 2 moving averages and one technical indicator. So simple and yet it consistently makes money month in and month out.

Here are only the indicators I use:

- 35 day EMA (exponential moving average)
- 75 day EMA (exponential moving average)
- 14 Williams % Range

I place them on a 1 hour EURUSD chart.

The EURUSD is the Euro / US Dollar pair and my trading system only trades the EURUSD pair on the 1 hour chart.

Forex Buy Signal

When the 35 day EMA is above the 75 day EMA the market is bullish.

When the Williams % Range (14 setting) crosses back above the -80 line (oversold) and the price trades 1 tick above the high of the previous bar or candle BUY the EURUSD pair.

The current bar or candle may not trade 1 tick above the previous high so with each new bar or candle that develops, keep adjusting your buy order so that it is 1 tick above the previous bar or candle.

NOTE: If the Williams % Range moves back below the -80 (oversold) line before an entry is triggered, then that buy signal is now invalid and we need to wait for the next set up.

Forex Sell Signal

When the 35 day EMA is below the 75 day EMA the market is bearish.

When the Williams % Range (14 setting) crosses back below the -20 line (overbought) and the price trades 1 tick below the low of the previous bar or candle SELL the EURUSD pair.

The current bar or candle may not trade 1 tick below the previous low so with each new bar or candle that develops, keep adjusting your sell order so that it is 1 tick below the previous bar or candle.

NOTE: If the Williams % Range moves back above the -20 (overbought) line before an entry is triggered, then that sell signal is now invalid and we need to wait for the next set up.

Stop Loss and Profit Targets

The most important thing when it comes to forex trading is managing your risk and we do this by using a stop loss on every single trade.

The stop loss I use on every signal trade is 50 pips below my entry price when I go long or buy the EURUSD. When I go short or sell the EURUSD, I place my stop loss 50 pips above my entry price.

Over the years I’ve experimented with many different stop loss levels and I find that 50 pips is a conservative stop loss that will cut losses quickly but at the same time it gives the trade enough room to move without being stopped out prematurely.

In regards to profit targets, I use a 30 pip profit target on all my trades and I find that approximately 80% of all trades hit this profit target. As I said previously, highly accurate forex signals!

Lately my Forex Buy Sell Signal Trading System is producing 10-12 buy or sell signals per week so you don’t need to be glued to the computer screen all day to trade it.