Verified trader is a trading system that is designed to trade in the foreign exchange market. This is a very simple forex trading strategy. Both the beginners and the experts can use this system to make profitable trade. The signals generated by the Verified trading system are very clear and understandable to any layman. The use of HeikenAshi chart in the system makes the system even more smooth and effective. HeikenAshi chart is the smoothened form of the normal bar charts. They are noise free and forms bars on the chart price which are easy to read by the naked eyes. You should follow the rules of the verified trader system very strictly in order to get the better results. Trend following strategies with the combination of moving averages, HeikenAshi chart, and some momentum indicator are always the best trading system to make money. Basically any trend following system are good for traders because when you trade in the direction of the trend you have less chance of being wrong than when you trade in the counter trend direction. Trend following traders have high chance of winning simply because trend doesn’t change dramatically within short periods of time. Trend generally lasts for longer time. So you trade in the direction which lasts for the longer time you have higher chance of making money out of the trade.
Talking about the verified Trader system, it consists of five technical tools that help to generate the trading signals in the market. When you correctly install the verified trading system on your trading platform your chart should look like this:
- Exponential Moving Average (EMA): EMA are the types of moving averages which are little different than simple moving average. EMA tend to give more weight to the recent data unlike the simple moving average which gives equal weight to all the data. In this verified trading system two EMAs are used. They are- EMA 21 and EMA 86. The brown color moving average is the 21 EMA while the Yellow moving average is the 86 EMA.
- HeikenAshi Bars: HeikenAshi Bars are the averaged form of the normal candlestick chart. They are noise free.
- Momentum: Momentum indicator consists of an oscillator which will help us to know the strength of the bulls and bears in the market.
- Stochastic: It is a very popular technical tool among the traders. They help to find out the overbought and oversold conditions in the market.
Buying Conditions Using Verified Trader System.
- Price should be above EMA 21 and EMA 86.
- Momentum indicator should be above the level of 100.
- Stochastic should be above the level of 20.
- Place your stop loss just below the recent swing low.
- Take profits when the stochastic rises to the overbought zone and begins to fall down.
Selling Conditions Using Verified Trader System.
- Price should be below EMA 21 and EMA 86.
- Momentum indicator should be below the level of 100.
- Stochastic should be below level of 80.
- Place your stop loss just above the recent swing high.
- Take profits when the stochastic falls to the oversold zone and begins to rise higher.
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