Trading 15 Minute Charts in Forex – Which strategies should you use for trading 15-minute charts forex?
The 15 minutes charts provide you with a lot of trading opportunities. These opportunities close pretty quickly. It is why many traders prefer to trade using these shorts. If you’re one of them, we have good news for you.
We will today highlight two different strategies to follow for the same. Both strategies can only serve as templates. You can improvise on them or backtest them to know more about them.
Strategy 1 – EMA Strategy:
The first strategy uses 5day EMA, 10day EMA, and 50day EMA. The buy signal gets generated when the 5day EMA and the 10day EMA moves above the 50day EMA. On the other hand, if both of these exponential averages move below the 50day EMA, the sell signal gets generated. When the opposite crossover happens in both cases, you need to close the trade.
This strategy can serve as a primary trading template. It would be best if you reinforced it with a couple of other indicators. The best way to go about it is to use social trading to your advantage. When you follow traders trading in the same asset class as yours, it becomes easier to verify the authenticity of this trading strategy. It also provides you with more confidence in trading.
Advantages of this strategy:
• The strategy uses simple indicators.
• The buy and sell check signal generation is relatively simple.
• The procedure can be reinforced with other indicators and strategies.
• It works with a wide variety of asset classes.
Strategy 2 – Stochastic Strategy:
The stochastic strategy is a bit complicated. However, it can work with 15-minute charts, 5-minute charts, and even a 1-minute chart. The versatility is the reason why it is on this list.
You will likely need Meta Trader 4 to setup all the indicators required.
You need to setup stochastics with parameters showing 16.0, %K 26.0, %D 18.0. Also, you will need 120day EMA and 50day SMA. You can paste the stochastics parameters from the line above.
The buy signal gets generated when the fast stochastic line crosses the slow stochastics line on the upper side. However, it is cut in the oversold region that is about 20. In this case, you can buy the asset class.
The sell signal occurs when the fast stochastic line is below the slow stochastics line. It happens above 80 and is in the overbought region.
Now, you are aware of the buy and sell signals; it is essential to understand when to exit the trade. When the stochastics make an opposite crossover, you need to exit the trade.
While it might seem like a complicated strategy, but it can work as a base template for other strategies to build on. You can use it as a confirmation indicator for social trading as well. The versatility is the reason why this strategy is on our list.
Advantages of this strategy:
• It works with any asset class.
• Once you set up the charts, it is easy to decipher.
• It provides you with real buy and sell indicators.
If you plan on trading 15 minutes charts in the forex market, you can use these two strategies as a base. When you build on them or backtest them extensively, it is easier to develop a profitable strategy.
With these cornerstones, you’re now more educated on how to trade the 15-minute forex charts. We have discussed above the basic building blocks for you to build on. How you use them is your decision.