26.3 C
New York
Saturday, July 24, 2021

Forex Trading Guide 2021: Forex strategy “Sidus Method”

The Sidus Method is a universal trading strategy, the advantage of which is that there is no need to install additional filters. Losses in this system are minimized.

The main characteristics of the strategy:

The most suitable currency pairs for trading are EUR / GBP and EUR / USD, others are possible.

A suitable time slot is H1.

Installed on the chart are 18 EMAs, as well as 28 EMAs – exponential moving averages and Weighted Moving Average with periods of 5 and 8.

The 18 EMA and 28 EMA, which form a tunnel, help to find the beginning and end of the trend, while the 5WMA and 8 WMA will help determine the point for opening a position, as well as with their help you can learn about the strength of the short-term trend.

Position opening:

You should enter the market only when the tunnel lines are intertwined or when the distance between them is very narrow.

Long positions are entered when 5WMA and 8 WMA cross the tunnel from the bottom up. A strong signal is also considered to be an upward crossing of the 8 WMA moving average of 5 WMA.

Short positions are opened in the opposite scenario: Moving averages 5WMA and 8 WMA cross the red tunnel from top to bottom. A strong signal is considered to be when the 8 WMA crosses the middle 5 WMA from top to bottom.

Profit should be fixed in the following cases:

When buying: A trade open position should be closed when the price has formed a maximum on the chart, and 5 WMA has moved the 8 WMA moving average.

When selling: It is necessary to close a trade position when the minimum is formed, and the 5 WMA moving average has moved above the 8 WMA.

It is also recommended to close a position when the boundaries of the tunnel intersect or approach so much that they seem to be one sliding.

The basic rule when using this strategy:

Trade positions should be opened only when the boundaries of the tunnel have crossed each other; in the reverse crossing, they should already be closed.

Latest Posts

spot_imgspot_img

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.