AUD/CHF Forex Day Trading Strategy

The AUD/CHF Forex day trading strategy is a simple trading system based on the ADX trend strength indicator that’s quite powerful.

It is powerful in the sense that the strategy’s buy/sell setup rules offer highly accurate trading signals.

This is a 15-Minute forex trading strategy that helps us open profitable live trades which are going to be closed on the same day.

This day trading strategy deploys an amazing combination of two prime trend tools and displays a remarkable trend following instinct for its users.

This strategy works great on the AUD/CHF pair and is applicable on any currency pair within the forex market.

Chart Setup

MetaTrader 4 Indicators: HMA_v2.ex4 (Inputs Variable Modified; HMA_Period=50, Colors Width Modified; #0=2, #1=2, #2=2), Average Directional Movement Index.ex4 (Parameters Modified; Period=28)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example: AUD/CHF (Australian Dollar / Swiss Franc), M15 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the light blue dots of the HMA_v2 custom indicator aligns somewhat below the activity chart as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the stipulated currency pair.
  • If the light sea green ADX Metatrader 4 indicator line surges above the 20.00 horizontal level, while the yellow green DI+ line runs above the wheat DI- line as illustrated on Fig. 1.0, bulls are said to be gunning for higher prices, hence a buy alert is apt.

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

Exit Strategy/Take Profit for Buy Entry

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

  • If while a bullish trend is ongoing, the HMA_v2 custom indicator pops up a tomato colored dot on the activity chart as depicted on Fig. 1.0, bulls are said to be closing their orders increasingly, therefore an exit or take profit will suffice.
  • If the light sea green ADX indicator line drops below the 20 horizontal level or its wheat DI- line crosses above the yellow green DI+ line during the course of a bullish trend, it is a trigger to exit or take profit straightaway.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the tomato colored dots of the HMA_v2 custom indicator aligns slightly above the activity chart as exemplified on Fig. 1.1, price is said to be dragged lower, therefore a sell alert is duly recommended.
  • If the light sea green ADX line breaks above the 20.00 signal level, while the wheat DI- line hovers above the yellow green DI+ line as shown on Fig. 1.1, the overall market sentiment is said to be bearish, hence a sell alert will suffice.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If during the course of a bearish trend, the HMA_v2 custom indicator pops up a light blue dot on the price chart (refer to Fig. 1.1), more and more bears are said to be leaving the market, as such an exit or take profit stance will do.
  • If the light sea green ADX line dips below the 20.00 horizontal level or its yellow green DI+ line crosses above the wheat DI- line while a bearish trend is on course, it is a trigger to exit or take profit at once.

Sell Trade Example: AUD/CHF (Australian Dollar / Swiss Franc), M15 Chart

Fig. 1.1

Free Download

Download the AUD/CHF Forex Day Trading Strategy

About The Forex Technical Indicators Used

The HMA_v2 custom indicator displays a dotted line on the chart, wherein the color of the dots are altered in relation to buy/sell signals.

The Average Directional Index of ADX is a forex indicator that is deployed in determining the strength of a trend.

It is usually deployed within a forex chart window and it showcases three lines with two representing the DMI (directional movement indicators).

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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