As a new forex trader, what you need is to find a simple forex strategy and master it on your demo account. Once, you have mastered it on your demo account, you can trade live with that forex strategy. In the beginning don’t look for a complex forex strategy. 200 EMA Forex Strategy is very simple and can be easily mastered. 200 Exponential Moving Average (EMA) is one of the most widely used indicators in forex trading.
In order to use the 200 EMA Forex Strategy open the 4 hour, 1 hour and the 15 minute charts on your MT4 Platform. Now plot the 200 EMA on these 3 charts and color it red.
Tile the 4 hour, 1 hour and the 15 minutes charts on your screen vertically so that you can view all three with ease at one glance. Now, scan the different currency pairs like the EURUSD, GBPUSD, USDJPY, USDAUD, USDNZD, USDCHF or whatever you want to trade on these three charts.
What you are looking for is a currency pair that bucks the trend on the 15 Minute Chart. Now, if the price is well above the 200 EMA on the 4 hour chart, it is well above the 200 EMA on the 1 hour chart but it is below the 200 EMA on the 15 minute chart, you have found the pair that is bucking the trend on the 15 minute chart. Suppose, this is the USD/JPY pair.
What this means is that the overall trend is up but the pair is temporarily going against the trend on the 15 minute chart and is currently in a retracement.
Search for a suitable entry point by looking for a candle signal like a hanging man or a hammer. For example, a hammer marks the reversal off a bottom or off a support level. When you see the hammer, it means a good signal for making a long entry into the trade. Appearance of a hammer is a signal that the price action has exhausted its downward momentum and is about to resume its upward momentum. Similarly, when you see a hanging man, it is time to sell. You can identify these entry and exit point with other candlestick patterns too!
With a little practice on your demo account, you will be able to master this very simple 200 EMA Forex Strategy and realize how powerful it is. You will be able to find the suitable currency pair that is bucking the trend on the 15 minutes chart within a few minutes after a little practice.
In short, what you will be doing is to find a currency pair that is bucking the overall trend on the 15 minutes chart in this 200 EMA Forex Strategy.