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Alison Heyerdahl
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Alison Heyerdahl
Edited by
Alison Heyerdahl
Head of Content

Alison Heyerdahl is the Head of Content at FxScouts and a financial writer with extensive experience in Forex trading, broker analysis, and market research. She has reviewed 100+ brokers, publishes weekly YouTube trading videos, and co-hosts the “Let’s Talk Forex” podcast to help traders make informed, safe decisions.

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Author
Author
Chris Cammack
Partner Manager and Financial Writer

Chris Cammack is the Partner Manager and a financial writer at FxScouts. Chris builds and maintains our relationships with our partners to provide our users with the best Forex trading experience.

Learn more about Chris Cammack

Turn Trade Strategy

Reading time: 3 min | Advanced Education | Trading Strategy

The Turn-Trade strategy is a mechanical trend trading strategy that trades in the direction of the prevailing and dominant trend. Developing a solid mechanical trade strategy is critical to the success of any size trading account. Mechanical strategies help traders find less obvious trading opportunities - they come both big and small.

Focusing on particular opportunities is an essential skill because markets tell a non-stop story, so traders need a way to break that up. Having a mechanical system removes the subjective analysis and allows for focus. Even though the Turn Trade strategy is a trend trading strategy, it tries to buy low and sell high. But it does so in the context of trading in the direction of the dominant trend. It works using:

  • Moving averages - one of the most popular indicators among traders to gauge the market trend.
  • Bolinger Bands to discover overbought and oversold conditions in the market.
  • Multiple time frame analysis to time the market. We cover this in a separate article and so will not cover it below in detail.

Turn Trade Strategy

As established above, we use two main sets of technical indicators for this strategy. I have chosen to leave our Multiple Time Frame Analysis to cover it in more detail. We use a simple moving average with a 20-period applied to the daily chart. The 200-day moving average is regarded to be one of the most important moving averages in technical analysis. Since 20 is a multiple of 200, 20 it carries a lot of weight as it is simple to calculate with. The 20-SMA includes a full month’s worth of trading data. Thus, it gives a trader a good idea of the average price of during the current month. The second technical indicator used is the Bollinger Bands. Bollinger Bands are a volatility indicator utilised to spot overbought and oversold conditions. Bollinger Bands are used on the 1h time frame. A Turn Trade setup requires two sets of Bollinger Bands. One should have three standard deviations (3SD) and the second with two standard deviations (2SD). The two bands will form a trading channel that contains the price action within it.

turn-trade-setup

Figure 1: Turn Trade Setup configuration

Buying Strategy

  • On the Daily chart price needs to be above the 20-SMA;
  • Only take long positions using the 1h time frame to time the market;
  • Wait for the price to break below, but needs to close above the lower 2SD-3SD Bollinger Bands before buying at the current market price;
  • Stop Loss 10 pips below the swing low;
  • Take partial profit at 50% of risk (i.e. If you risk 50 pips then take profit 25 pips above the entry)
  • Move SL to BE once TP1 reached;
  • Take profit on the second half of the trade once price tests the upper 2SD-3SD Bollinger Bands;

Selling Strategy

  • On the Daily chart price needs to be below the 20-SMA;
  • Only take short positions using the 1h time frame to time the market;
  • Wait for the price to break above, but needs to close below the upper 2SD-3SD Bollinger Bands before selling at the current market price;
  • Stop Loss 10 pips above the swing low;
  • Take partial profit at 50% of risk (i.e. If you risk 50 pips then take profit 25 pips below the entry)
  • Move SL to BE once TP1 reached;
  • Take profit on the second half of the trade once price tests the lower 2SD-3SD Bollinger Bands;

Examples

Looking at the Daily GBP/USD chart below, you can see that in the middle of April we broke above the 20SMA. This means that the predominant trend is up. So we’re only going to take long positions as per the Trade Turn strategy.

Figure 2: GBP/USD Daily Chart

Figure 2: GBP/USD Daily Chart

Switching to the 1H time frame (see Figure 3) we’re going to wait for all conditions to line up before entering a long position. Notice that at the first retracement into the lower 2SD-3SD Bollinger Bands a long signal is triggered. Now, both of our profit taking areas have been reached in the following hours.

Figure 3: GBP/USD 1H Chart

Figure 3: GBP/USD 1H Chart

Turn Trade strategy demonstrates the power of trading with the trend. And taking advantage of using multiple time frame analysis to time the market. Trading with the trend means fewer losses and thus a good reason using the Turn Trade strategy in your trading.

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Meet the Experts Behind Our Unbiased Reviews

Chris Cammack

Partner Manager and Financial Writer

Chris Cammack
Chris Cammack is partner manager and senior financial writer at FxScouts, specialising in broker relations and forex market analysis. As the former Head of Content (2019–2024), he set editorial standards for all content published at FxScouts, including broker reviews, broker comparison pages and education. With over a decade of experience in editorial management and partner relations, Chris builds and maintains our relationships with our partners to provide the best Forex trading experience for our users. He also co-hosts the “Let’s Talk Forex” podcast with Alison Heyerdahl, where he explores trading strategies, industry news, and macroeconomic trends to help traders navigate the markets with confidence.

Alison Heyerdahl

Head of Content

Alison Heyerdahl
Alison Heyerdahl is the Head of Content at FxScouts and an experienced financial writer with extensive hands-on experience in the Forex trading industry. She specialises in Forex trading, broker analysis, and market research, with a focus on helping traders navigate the complex world of online trading safely and confidently. Alison has tested and reviewed more than 100 Forex brokers, assessing everything from regulatory status and trading conditions to platform features and customer support. Her goal is to provide honest, detailed, and practical insights that traders can rely on when choosing a broker. She’s also produced more than 100 educational videos for the FxScouts YouTube channel, where she explains trading concepts in a clear, accessible way. As the co-host of the “Let’s Talk Forex” podcast, Alison shares expert commentary on broker reliability, trading strategies, and market developments—always with a focus on transparency and trader protection.

Ida Hermansen

Financial Writer

Ida Hermansen
Ida is a financial writer with a passion for cryptocurrencies, blockchain networks, and Forex trading. A dedicated crypto trader, she developed a deep interest in Forex technical analysis and price action, continually expanding her expertise in market trends and trading strategies. With a background in digital marketing, SEO, and content strategy, Ida combines her analytical skills with clear, engaging writing to help traders navigate the ever-evolving financial markets. She stays up to date with the latest Forex and crypto developments, researching the best trading environments for new and experienced traders alike.

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Financial Writer

Stefan de Clerk
Stefan is a financial writer and Forex trading enthusiast with over a decade of experience creating in-depth content on finance and technology. His deep interest in geopolitical events, big data, and market sentiment fuels his passion for analyzing how global factors shape financial markets. With a background in marketing and financial research, Stefan believes that Forex trading offers the best insight into the pulse of the world economy. Committed to delivering well-researched, unbiased, and objective information, he helps traders navigate the markets with clarity and confidence.
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