For all those beginners out there looking for a proper trading system to start trading profitably in the market, this is perhaps one of the most popular ones around, to say the least. What makes this Andrew Forex trading system better than the other ones is more than its comprehensive analysis methods. Instead, for a newbie trader like you, this is perhaps one of the easiest systems around. It’s all about a proper balance between profitability and ease of use.
Andrew Forex Trading System:
This trading system uses two common market analysis pointers. Firstly, it uses a Super trend line. The Super trend line is simply a cumulative summation of both price action trends along with transaction volume. So you won’t exactly find it lining up with candlestick price action. Instead, what you get is a strong trend line for reference as per overall trend and price action patterns.
Secondly, this trading system uses Nonlagdots. This is an indicator in itself analyses and interprets market strengths as per the number of buys and sells. Buys will show up as red while sells will show up as greens. Simply, Nonlagdots follow the same principals as moving averages. But their interpretations are completely on the basis of market strength and trend interpretations.
Using Andrew Forex Trading System:
There’re more than a few pointers and variable situations which come into the picture while trading in this market. But what matters is having an overall idea about the market. Here’s a crash course.
• Buy or Entry Signals
The first two signals which you’re looking for are a green super trend line and green Nonlagdots above it. For you, a nice entry point is where closing prices are lower than previous ones.
Waiting for the market extremum is obvious. Persevere till the price does reach that point and further follow up with an apparent downtrend. You need to understand that the market will automatically fall back in case of above average pair pricing. This is just about the basic of everything you will need to find the right buy signal.
• Sell or Exit Signals
A point worth mentioning in this juncture, you’re better off using this trading system primarily for 4-hour trades although it can provide ample profits on other time frames. Either way, finding the right sell signal follows up conventionally from buying signal pointers.
Nonlagdots should be under a red Super trend line. At the same time, you’re exiting after a conclusive trend reversal where closing prices are on a conclusive bullish trend. Wait for a market rebound and place an exit at a successive time frame. While doing this though, keep an eye on the Super trend line to make sure it’s staying green.
Some Other Specifics:
To add on, a proper exit strategy is when the price touches the Super trend line or when this line takes red from green. Further, make sure you set your Stop loss either on that line or the Support.
This is just about enough for you to get the hang of trading with Andrew Forex trading system. A helpful suggestion, do make sure to try it out with a Demo account before going live.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.