The Flip and Go forex trading strategy follows the overall trend and is easy to apply. All you need on your charts is the MACD indicator with default settings and the 25-period exponential moving average.
Setup
- Time Frame’s: 15 min and above
- Recommended Trading Sessions: Euro and US
- Pairs: Any
Indicators:
- 25-period EMA (25 exponential moving average)
- MACD (12, 26, 9)
Rules for a Long Trade
- Look for a currency pair that crosses and closes above the 25-period EMA from below.
- Wait for the MACD to turn positive (above the zero line).
- Go long at the candle’s close.
- Place stop loss 3 pips below the most recent support low.
- Trade objective: risk-to-reward 1:2 or better.
Rules for a Short Trade
- Look for a currency pair that crosses and closes below the 25-period EMA from above.
- Wait for the MACD to turn negative (below the zero line).
- Go short at the candle’s close.
- Place stop loss 3 pips above the most recent resistance high.
- Trade objective: risk-to-reward 1:2 or better.
Example: GBP/USD 15 Min Chart Flip and Go Forex Strategy
The GBP/USD crosses and closes the EMA25 for below and the MACD turns positive. We open a long trade at 1.5354 with stop loss 3 pips below the most recent level of support at 1.3532.
Total risk on the trade:
22 pips. Trade objective: 22 pips x 2 (or better) = 44 pips.
The long trade was closed successfully about 4 hours later at 1.5398 for 44 pips.
