The7 Strategy for Daily Charts

In front of you is a simple to understand and apply, but quite powerful trading strategyproposed to work on the daily chart of The7. Only two indicators are used for work: price chart and  moving average.

Trading strategy settings

Timeframe: Daily
Currency pairs: diverse
Trading time: once a day on the opening candle
Indicators: EMA (5) plotted on High and EMA (5) plotted on Low.

The7 trading strategy rules

The main point of working on this trading strategy is to get the maximum possible profitable position, which would exceed several minus positions. Therefore, it is recommended to use several currency pairs at once: as many as your deposit allows. At the same time, reminds you that it is important to use Money Management wisely: up to 3% per trade.

So, since we use the daily chart for trading, we work only once a day - at the opening of a new bar. This approach greatly simplifies the life of those traders for whom the market is a hobby.

To work, we set two EMA indicators (5) on the chart: one of them is based on the High of the candle, the second - on the Low. We get a trading channel.

Buying deal is made when a bullish candlestick opens outside the channel and closes inside it. With the opening of a new bar, set a Buy order.

Same with sales: a bearish candle should open outside the channel and close inside it, breaking the upper boundary from top to bottom.

The7 trading strategy rules
The7 trading strategy rules

Stop Loss is set at the High or Low of the signal candlestick, adding to it the value of spread.

Profit is taken when conditions for the opposite trade appear. It is also not superfluous to use Tralling stop when the next candle goes out of the channel.

Recommended Also, do not open a trading position if the signal candle has broken through both borders of the channel at once, as it may mean that the movement has already overcome its peak. In addition, it is worth paying attention to strong support and resistance levels, as well as the general trend movement at the current moment: give more profit to a deal on the trend, and be more careful with price reversal on the expected correction.

It is also important to realize that a strategy can produce several small losses in a row, especially in times of prolonged flytrapHowever, they should be offset by good profits on the trend. Those traders who want to modify the system can try to use their favorite trend indicator or oscillator as an additional filter.

You can find an expert written on this strategy in the 75th issue of magazine

Leave a Reply

Back to top button