Alright, I am going to try to explain this as simply as possible and I am sure experienced traders will know what I am talking about, if not look at towards the bottom of this articles and on my site you will see two bookd that I recommend and systems that will clear everything up.

So how do I trade? Here are my settings:

1. 5 min charts

2. I use EMA 21, SMA 50, and SMA 10 (EMA=exponetial moving average, SMA= Simple moving average)

3. MACD settings, 13, 1, 1

4. Suggested currency pair, Eur/USD

Okay, it's quite simple, the 50 SMA determines whether we are looking for shorts or looking for longs. If price is below the 50 SMA, we are looking for shorts, if it's above we are looking for longs.

Rules:

When price is above the 50 SMA and pulls back to the 21 EMA bouncing off of the 21 EMA, we look to go long.

When price is below the 50 SMA and pulls back to the 21 EMA bouncing off of the 21 EMA, we look to go short.

When to enter: At the close of the 5 min candle that bounces off of the 21 EMA whether it be a short or a long.

When to exit: 60 pip profit target

Stop loss: 12 pips

Confirmation: MACD will be used as an aid in confirming whether you want to take the bounce off of the 21 EMA. In a long the MACD bar for the entry candle has to be greater than the previous MACD bar for the 5 min candle. In a short the MACD bar for the entry candle has to be less than the previous 5 min candle MACD bar.

Rules continued: If you get 60 pips on your first trade, your done for the day. I've tested this over 3 years and found there is at least one opportunity per day for a 60 pip trade. After that you run the risk of false signals and bad trades.

If you first 4 trades are losses, you stop trading for that day and continue the next.

This strategy works very well for the time frame: 6:am EST to 4PM EST. Don't not trade outside of those hours, the system has been tested and your chances are better for the 60 pip trade within those trading time frames.

I know I'll have questions and I'll do my best to answer, feel free to comment.

If you are looking for profitable forex trading system, here are two that I highly recommend and do use myself. Forex Trading Systems.

Refined And Working With Trend Lines

Using trend lines in your tradin is essential. I've recently starting applying the basics and it's increased my overall trading accuracy. I've got to tell you far too many people make trading Forex a lot harder than it really is. If you have good understanding of the market and by that I mean technical analysis as well as basic fundamentals down you can do very well. If you're struggling with your trading try take a top down approach. Meaning, look at the longer time frames first to get an idea of the overall trend.

One of the easiest ways to really pick out the most highly profitable trades is to identify a trending channel and trade only on the tips within that trending channel if the overall trend was up.  I can't tell you enough how many times and how often the Euro dollar sets up in nice trending channels that are easy to pick out and for us it means easy pips.