The Aroon Oscillator forex strategy for beginners is a simple trend-following strategy that tries to define the strength of a trend that is in focus and its likelihood to last.
The strategy combines the Aroon_Oscillator_v1 custom indicator and the ASCTrend.ex4 indicator as well.
Chart Setup
MetaTrader4 Indicators: Aroon_Oscillator_v1.ex4 (default setting), ASCTrend.ex4 (default setting)
Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Recommended Trading Sessions: Any
Currency Pairs: (USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, GBP/CHF)
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Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following conditions are in place:
- If the aqua colored upward pointing arrow of the ASCTrend.ex4 custom indicator appears beneath price bars, it is a trigger to buy i.e. a bullish trend.
- If the green line of the Aroon_Oscillator_v1.ex4 custom indicator breaks above the 0.00 level, it is a signal that price is being pushed upwards i.e. a buy alert. The vertical dodgerblue line that forms above the zero mark and is usually bordered by the green line of the Aroon_Oscillator_v1 indicator, is an indication of a strong bullish trend.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following chart or indicator patterns are in display:
- If the magenta colored downward pointing arrow of the ASCTrend.ex4 custom indicator forms above the price bars, it is indicative of an exit or take profit signal.
- If the green line of the Aroon_Oscillator_v1 custom indicator breaks below the 0.00 level, it is a signal that price is being pushed lower, as such an exit or take profit is appropriate.
Sell Entry Rules
Enter a sell if the following indicator or chart patterns are in display:
- If the magenta colored downward pointing arrow of the ASCTrend.ex4 custom indicator forms above price bars, it is a trigger to go bearish on the asset.
- If the green line of the Aroon_Oscillator_v1 custom indicator breaks below the 0.00 level, it is a trigger to go bearish i.e. a sell order. The Aroon_Oscillator_v1 custom indicator further forms red vertical bars (below the 0.00 level) that are bordered by the green line of the Aroon_Oscillator_v1 indicator, which goes on to support the bearish trend.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry:
Exit or take profit on position(s) if the following is observed:
- If the aqua colored upward pointing arrow of the ASCTrend.ex4 custom indicator forms below the price bars, it is indicative of an exit or take profit signal.
- If the green line of the Aroon_Oscillator_v1 custom indicator breaks above the 0.00 level, it is a signal that price is pressured higher, as such an exit or take profit is appropriate.
Fig. 1.1
Free Download
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About The Trading Indicators
The Aroon_Oscillator_v1 custom indicator is built on the Aroon indicator and as such is a trend following indicator that defines the strength of a trend in focus and its likelihood to last.
It oscillates between -100 and 100, offering currency signals for all currency pairs and on all timeframes.
The ASCTrend.ex4 is a trend following indicator that uses magenta downward pointing arrows or aqua upwards pointing arrows to define sell and buy signals respectively.