Trend lines are most popular in Forex for technical analysis of market. Most successful traders are using them. But only trend lines are not enough for trading because trend lines show many fake signals or breakouts. Ali’s strategy is new strategy in which many filters can filter the trend line signals and we can prevent fake signals. In this article i will discuss a professional Forex trading strategy with entry, take profit and stop loss rules. Money management will also discuss in it.

How to draw trend lines?

Trend lines are very important level of market. We draw trend line from peak to peak point of market. A best trend line should touch minimum 2 peaks of market. But trend line on more than 2 peaks are more perfect in trading.

Correct trend line example

False trend lines example
Buy Entry Rules:

- Trend Line break and close above by a bullish candle
- Moving average below the price
- Bar signal indicator maximum green
- RSI also break trend lines above

Sell Entry Rules:

- Trend line break and close below by a bearish candle
- Moving average above the price
- Bar signals maximum red
- RSI also break trend line below

Take profit :

Formula: [(High –low )*10000 ]/2
  • Buy trade Take profit example

In this buy trade example high is 1.13732 and low is 1.12145 put them in formula:

[(1.13732-1.12145)*10000]/2 = 79 pips

Our target will 79 pips

  • Sell trade Take profit example:

High is 1.12151
Low is 1.09164

[(1.12151 – 1.09164)*10000] / 2 = 149 pips

Our target will 149 pips

Stop loss:

Stop loss is very important in any strategy because there is nothing 100%. Assume out of 100 trade you win 99 but due to 1 bad trade you can loss your all profit and capital. So it is necessary to stop fake or wrong trade by placing stop loss.
Simple and most friendly method to put stop loss is previous high and low.

- Place your stop loss at previous high in sell case
- Place your stop loss at previous low in buy case

Money management :

Money management is very important in trading. It can bring your account at peak if you have good excellent rules. You should never use big lot size on a small account. Lot size depends on your account size.
There are some rules about money management:

Your account capital

Lot size
0.01 $
0.05 $
0.1 $
1 $
5 $
10 $
And so on
And so on

Thank you for reading this article.
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