555 FOREX TRADING SYSTEM

This forex trading system is part of my whole system of Forex Trading. I post only to help the new traders to develop their own trading system. This Forex system can be used in all pairs. It is far from perfect but may give an idea of how trade and develop their own forex trading system. Perhaps in the future if you manage to improve this system, you may want to share with me. Anyway here goes.

Running Time: 4 hours
EM: SMA5 or SMA8 that best suits each time, SMA55
TSF: Period = 55
Bollinger Band: MA = simple, Period = 55, multiple = 2.0
Slow Stochastic: Period = 10, 3, 3, simple, simple
Fast Stochastic: Period = 13, 3 Exponential
For the 1st table to use USD / JPY pair within 4 hours. Remember, this Forex system is designed for 4 hours time frame, but can be used on all pairs. In this system of currency, MA8 (red) and TSF55 (Blue) is the indicator to trade long or short. When the red is above blue = long and vice versa. BB55 and SMA55 is the goal. Both the stochastic are a confirmation of the trade position.
When the price is in BB55 either the top or bottom and both stochastic shows the extreme value may be a signal for change. To confirm the investment is when the price broke the red and blue. The price of it is the final indicator. Once the price broke the 2 lines, find the entry for the best. Normally, the best entry is when the price is on the blue line. If after entering the trade, and the drive to get the price in his favor let it go and escort him to finish.
Below is the explanation of the above table
1. BB55 peak price. As mentioned before, BB55 acts as targets. In this case, USD / JPY already reached its destination on the basis of this system, but the momentum is still strong based on the distance of the Red and Blue line.
2. BB55 peak price again but this time the closing prices below the red line. This indicates that the momentum has died and a reversal soon.
3. Ideal input. Red under the blue line indicates a short position. The price is on the blue line.Short now and let it run until it meets the bottom BB55
4. Price crossed BB55 and then goes flat at this point. It is making its way back to BB55 and a flat red line indicating the time is dead and is an investment very soon. At this point, the entrance of the long position is the lowest price in BB55.
5. BB55 peak price but can not make new highs. This is where to exit and enter new short position. Let it run until the drive is dead.
If you look at point 1, 2, 3 and 5. All points are high and they are all higher than the previous peak. This is an indication that, and USD / JPY is actually rising, but as the currency in the waves that sometimes get lost and fail to see the whole picture. In this case, which never does, follow the trend and always remember that the picture is USD / JPY uptrend going. Being preparation if the market suddenly shoot. Always remember to use stop loss correctly. Forex market is a risk, manage risk appropriately.