Abids method is a forex trading strategy. Abids method forex trading strategy is clean and easy method of trading in foreign exchange market. The system is heavily dependent on moving averages. Abids method system is a trend following system. Trading against the major trend is not recommended using Abids method. The Abids method will work in any time frame. On the main chart window there are six moving averages of which three are red in color and another three are blue in color. The group of blue moving averages is named as upper envelope and the group of red moving averages is called lower envelope. The Abids method system generates signal in both directions but you should be only trading in the direction of trend in order to increase the probability of win of your trades.
Simple systems are often underestimated by the traders and they really don’t invest good time to master the system. As a result, they fail and they start to blame the system. Traders who fall in to this category will never succeed in trading. Have a positive mindset and believe in your system and master it by practicing again and again. You should first practice in demo account but shift to real once you are profitable on demo. Because trading in demo won’t create any emotions in your mind even if you try to pretend it as a real account. So take sometime and practice with Abids method. When the Abid’s method is installed correctly on your trading platform your chart should look like this:
Abids method consists of two envelopes; upper envelope and lower envelope. Let’s say it as an envelope when both of the types are combined.
- Silver Trend Signal
Silver Trend signal is one of the main indicators for generating the trading signal on this system.
- Money Flow Index
Money Flow Index consists of various oscillators. We will use the crossovers of these oscillators for the confirming our trading decision.
Buying Conditions Using Abids Method.
- A blue dot should appear below the chart recently.
- Price should move above both the upper and lower envelope.
- The yellow color oscillator of Money Flow Index indicator should cross above all the other oscillators.
- Place your stop just below the recent swing low.
- Take your profit when a red dot appears above the price chart.
Selling Conditions Using Abids Method.
- A red dot should appear above the chart recently.
- Price should move below both the upper and lower envelope.
- The yellow color oscillator of Money Flow Index indicator should cross below all the other oscillators.
- Place your stop just above the recent swing high.
- Take your profit when a blue dot appears below the price chart.
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