Tom Demark Forex Trend Following Strategy

August 16, 2016

709

Tom Demark Trading System

This trend following trading system is originally called the broken system. This system can give a trader signals most of the time because it works in all currency pairs. Use an hourly chart when you use this system. Listed below are the indicators and its setups.

EMA 9
EMA 30
Momentum indicator (draw a horizontal line at the 100 point).

Instruction:
Draw a Tom Demark trend line connecting at least 3 swing high or low. And should avoid steep angles

Rules for LONG entry:

Wait for the 9 EMA to cross upward to the 30 EMA.
Momentum line must be above 100.
Price must break the trendline.
Wait for the opening of the next candle to enter a trade.

Rules for SHORT entry:

Wait for the EMA 9 to cross downward to the 30 EMA.
Momentum line must be below 100.
Price must break the trendline.

The EMA will cross after the break of the trendline.

Place stop loss to 40 pips.
Take profit from 40 pips to 150 pips (depending on pair volatility and current situation).
Move your stop in the direction of trade in steps of 10 pips.
Tighten the stop loss when the market reaches 75% of its daily range.
Close position when there is a sign of reversal and get rid of your limit if there is no sign of reversal.

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