Developing a Forex Tactical Trading Plan: Implementing a personal trading plan is just that: personal. You need to find a set of trade selection parameters that suits your own trading style. For example, if you are uncomfortable carrying positions overnight when you are unable to monitor price movements. You would want to gravitate toward a day/intraday Forex trading strategy. Obviously, if you can’t or don’t wish to be tied to sitting in front of a monitor for a significant period of time then adopting a longer-term outlook and strategy will suit you best. No great surprise in that I am sure.
If you opt for a long term approach, simply work for the basic data contained in the Full Data. Reports and apply some of the principles I have outlined in the pages dealing with Indicators, Support and Resistance Levels, Breakouts and Stops. (Find them on the drop-down menu at the top of the page.
Although the basic plan is based on primarily intraday trading. Rather than carrying overnight positions, they are universal enough in concept to carry over into a position trading strategy as well.
My Tactical Approach:
Since my primary trading platform of choice is PrimeFin, I use the trading indicators and overlays available on that platform. If your own platform of choice does not have all these forexes features you have two options: 1). to replace some of the indicators and overlays with similar ones that are available on your platform or 2). open an FX Game (Demo) account with PrimeFin and use the same as I do or substitute as you feel necessary. (One note of interest, unlike many other demo platforms, PrimeFin’s is not time-limited. You may keep using it as long as you wish without having to re-register. I have had an FX Game account with them since late 2000 and still use it regularly for testing new strategies and tactics.
The screenshot above shows the configuration I use for indicators and overlays. The bottom of the screen has the 14 RSI which I use as an overbought/oversold indicator. I have added four horizontal lines, two yellow and one red and green, to define the OB/OS levels for the day. The red/yellow combination defines RSI reading of 70 and 80 while the green/yellow “band” defines OS levels.
You may also check – Finscreener
On the upper screen (price chart)I have four horizontal lines drawn, the green line representing the protected daily low, the red projected daily high. The lower yellow line is S2 while the upper yellow line is R2. Notice also that I have added Parabolic SAR and 5 and 20 unit ems. (Please note on the charts these are NOT the daily ema levels).
While this may seem an overzealous approach to you, I find it simplifies things for me without adding too many indicators and overlays including R/S lines, etc. From my own position as an intraday trader, I can then see immediately if we are at an OB/OS extreme and where we stand in relation to key price levels on either side of the market.
I will be expanding on this discussion in the next several days so check back Thursday or Friday for more details.
Developing a Tactical Trading Plan: Implementing a personal trading plan is just that: personal. You need to find a set of trade selection parameters that suits your own trading style. For example, if you are uncomfortable carrying positions overnight when you are unable to monitor price movements, you would want to gravitate toward a day/intraday trading strategy
