AUD/JPY 1-Hour Forex Swing Trading Strategy
The AUD/JPY 1-Hour Forex swing trading strategy captures bigger market trends successfully on the 1-hour time frame and above with the help of the MACD cross indicator.
It’s a trend following swing trading strategy that follows the best market trend at all times.
The strategy was successfully tested on the AUD/JPY pair but should work on any pair of your preference.
MetaTrader 4 Indicators: MACD_Cross.ex4 (Inputs Variable Modified; fast_ema_signal=20, slow_ema_signal=70, signal_period=36, Colors Width; #0=3, #1=3), MACD_Signals.ex4 (Default Setting), DeMarker.ex4 (Parameters Modified; Period=32)
Preferred Time Frame(s): 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: AUD/JPY + any other pair
Buy Trade Example: AUD/JPY (Australian Dollar / Japanese Yen), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue signal ball of the MACD_Cross custom indicator pops up below the candlesticks as seen on Fig. 1.0, bulls are said to be driving price higher i.e. a trigger to buy the designated currency pair.
- If the sky blue and fire brick histograms of the MACD_Signals forex indicator align above the 0.00 reference level as shown on Fig.1.0, the general market sentiment is said to be bullish i.e. a trigger to buy the currency pair of interest.
- If the light sea green line of the DeMarker Metatrader 4 forex indicator breaks& hovers above the 0.5 horizontal level as illustrated on Fig. 1.0, it is pointing to increasing bulls pressure, thus a signal to buy the underlying currency pair.
Stop Loss for Buy Entry: Place stop loss 5 pips below swing low support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the MACD_Cross indicator pops up a red signal ball somewhat above the price bars during the course of a bullish trend (see Fig. 1.0), bulls are said to be closing their market orders, thus an exit or take profit stance is advised.
- If the MACD_Signals indicator pops up a sky blue or fire brick histogram below the 0.00 horizontal level while a bullish trend is running, it is indicative of weaning bulls power i.e. a signal to exit or take profit immediately.
- If the light sea green line of the DeMarker indicator dips below the 0.5 level while a bullish trend is on course, bull are said to be closing their positions increasingly, therefore an exit or take profit stance is advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red signal ball of the MACD_Cross custom indicator gets displayed above the price bars as exemplified on Fig. 1.1, bears are said to be driving price lower, therefore a buy alert will suffice.
- If the sky blue and fire brick histograms of the MACD_Signals forex indicator align below the 0.00 horizontal level as depicted on Fig.1.1, the overall market sentiment is said to be bearish i.e. a trigger to sell the currency pair of focus.
- If the light sea green line of the DeMarker forex indicator breaks& runs below the 0.5 reference level as demonstrated on Fig. 1.1, the market is said to be in favor of downward price pressures, thus a signal to sell the underlying forex pair.
Stop Loss for Sell Entry: Place stop loss 5 pips above swing high resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the MACD_Cross indicator pops up a blue signal ball slightly below the candlesticks while a bearish trend is ongoing (refer to Fig. 1.1), more and more bears are said to be leaving the market, thus an exit or take profit stance is recommended.
- If the MACD_Signals indicator displays a sky blue or fire brick histogram above the 0.00 horizontal level during the course of a bearish trend, it is indicative of diminishing bears power i.e. a signal to exit or take profit forthwith.
- If the light sea green line of the DeMarker indicator surges above the 0.5 level while a bearish trend is running, bears are said to be closing their market orders progressively, therefore an exit or take profit stance will do.
Sell Trade Example: AUD/JPY (Australian Dollar / Japanese Yen), H1 Chart
About The Forex Technical Indicators Used
The MACD_Cross custom indicator is a modified Moving Average Convergence/Divergence oscillator that offers the best for both momentum and trend following, by deploying the signal line crossover mechanism.
The MACD_Signals indicator is an enhanced Moving Average Convergence Divergence oscillator with a nice visual display of histograms aligned below & above the 0.00 signal level to depict bearish/bullish trend respectively.
The DeMarker indicator is an oscillator designed by Tom Demark that also finds use when traders are trying to determine potential overbought and oversold regions in the market.
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