The Accelerator oscillator forex trading strategy is designed to allow the trader scalp the market for profits in a repeated manner.
This strategy generates multiple signals during the day’s session, thus translating into an income streamer for the trader.
MetaTrader4 Indicators: Stochastic_Cross_Alert.ex4 (default setting), Accelerator Oscillator.ex4 (default setting), Timing.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes
Recommended Trading Sessions: London & New York
Currency Pairs: any
Buy Example (click the image for full size):
Long Entry Rules
The following conditions will determine a long entry in the market:
- If the green upward pointing arrow of the Stochastic Cross Alert custom indicator forms below price bars, it indicates that price pressures favors the upside and as such a long entry is fine.
- If the Accelerator oscillator MT4 indicator forms a corresponding green histograms above the 0.00 level, it denotes a bullish signal.
- The timing custom indicator line turns green while in the oversold region (0 – 30), it is a signal that price is pushing to the upside.
Stop Loss for Long Entry: Place stop loss ≥3-6 pips away from entry price.
Exit Strategy/Take Profit for Long Entry
The following rules will define your take profit or exit strategy:
- If a red downward pointing arrow of the Stochastic Cross Alert custom indicator form above price bars, it is a signal of a reversal and should trigger ab exit or take profit strategy.
- If the histograms on the Accelerator oscillator MT4 indicator turns red, it is a signal that price is losing momentum and is on its way south. An exit or take profit should be triggered.
- The Timing custom indicator line turn yellow and/or moves into the 70 – 100 area (overbought area), an exit or take profit should set in.
Sell Entry Rules
The following conditions will define a sell entry:
- If the red downward pointing arrow of the Stochastic Cross Alert custom indicator forms above the candlesticks, it signals downward pressures and a ripe condition for a SELL.
- If the red histogram of the Accelerator Oscillator MT4 indicator forms below the 0.00 level, it explains a SELL in the market.
- The Timing indicator turns yellow while in the overbought region i.e. the 70 -100 region.
Stop Loss for Sell Entry: Place stop loss ≥3-6 pips above from entry price.
Exit Strategy/Take Profit for Sell Entry
The following rules are indicative of an exit or a take profit:
- The Stochastic Cross Alert custom indicator reverses to the downside and forms an upward pointing green arrow.
- If a green histogram forms either below or above the 0.00 level, it means trend is reversing.
- If the yellow line of the Timing custom indicator drives into the 0 – 30 level i.e. the oversold region, position(s) can be exited or profits taken.
About The Trading Indicators
The Stochastic_Cross_Alert.ex4 is a custom indicator that is built on the Stochastic and Moving Average MT4 indicator.
The workings of the Stochastic_Cross_Alert is such that is forms a buy or a sell arrow on the chart when the indicator lines cross each other from below 20 or above the 80 level respectively.
The Accelerator Oscillator is an indicator by Bill Williams that is used to interpret the force in the momentum that an asset displays.
The indicator uses histograms that oscillates either above or below the 0.00 mark to define a bullish or bearish market respectively.
The Timing custom indicator is an oscillator that explains overbought (70 -100 area) and oversold (0 -30 area) conditions in the market, with the use of a line that changes its color between yellow, green and orange.