Trend Oscillator Forex Trading Strategy

The Trend Oscillator forex strategy is a trend following trading strategy that works for scalping, day trading and swing trading.

This strategy provides you with buy and sell signals (entry strategy) and the price at which you should take your profits (exit strategy).

Chart Setup

MetaTrader4 Indicators: Aroon_Oscilator_v1.ex4 (Input Variable modified; AroonPeriod=20, CountBars=300000000), ytg_DveMashki_ind_w_Signals.ex4 (default setting), ZeroLAG_MA.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Trend Oscillator Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the medium turquoise line of the ytg_DveMashki_ind_w_Signals.ex4 custom indicator intersects the indicator’s yellow line and the red line of ZeroLAG_MA.ex4 bottom up as seen on Fig. 1.0, with dark slate blue bars forming below the candlesticks, price is said to be pressured to the upside i.e. a trigger to buy the currency of focus.
  2. If the green line and dodger blue histograms of the Aroon_Oscilator_v1 custom indicator align above the 0.00 signal level as depicted on Fig. 1.0, the market sentiment is believed to be somewhat bullish, hence initiate buy order(s).

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway on the activity chart:

  1. If the medium turquoise line of the ytg_DveMashki_ind_w_Signals.ex4 custom indicator intersects the indicator’s yellow line and the red line of ZeroLAG_MA.ex4 top downward during a buy signal, it points to weaning bulls power in the market, as such an exit or take profit will suffice.
  2. If the green line or red histograms of the Aroon_Oscilator_v1 custom indicator breaks below the 0.00 signal level during a buy signal, an exit or take profit should be considered straightaway.

Sell Entry Rules

Enter a sell in the market if the following holds true:

  1. If the medium turquoise line of the ytg_DveMashki_ind_w_Signals.ex4 custom indicator intersects the indicator’s yellow line and the red line of ZeroLAG_MA.ex4 lines top downward as shown on Fig. 1.1, with Maroon price bars forming above the candlesticks, price is said to be pushed lower i.e. a trigger to sell the asset of interest.
  2. If the green line and red histograms of the Aroon_Oscilator_v1 custom indicator align below the 0.00 signal level as depicted on Fig. 1.1, the market sentiment is believed to be somewhat bearish i.e. a sell order.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions take precedence:

  1. If the medium turquoise line of the ytg_DveMashki_ind_w_Signals.ex4 custom indicator intersects the indicator’s yellow line and the red line of ZeroLAG_MA.ex4 top bottom up during a sell signal, it points to weaning bears pressure in the market, as such an exit or take profit will do.
  2. If the green line or dodger blue histograms of the Aroon_Oscilator_v1 custom indicator break above the 0.00 signal level during a bearish trend, an exit or take profit should be considered without delay.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The ytg_DveMashki_ind_w_Signals.ex4 is a proper visual representation of the MACD on the activity chart.

Although the standard MACD has just one line, here we find two lines (yellow and medium turquoise).

The ZeroLAG_MA.ex4 is a moving average indicator that has little or no lag on price.

The Aroon_Oscilator_v1 is a custom indicator designed by Tushar Chande and has the ability to spot the formation of new trend as well as also define the momentum of such trends.

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