AUD/JPY Forex Day Trading Strategy

The AUD/JPY Forex day trading strategy allows currency traders to open and close trades within the same day with the help of the MA Bollinger Bands indicator.

The strategy takes advantage of rapid market movement within the same trading day.

The indicators deployed within this strategy are easy to grasp, deliver highly accurate signals and ramps up the win rate for orders initiated.

Traders will enjoy the outright versatility that comes with using this strategy, thereby exploiting its ability to trade different types of currency pairs, including the AUD/JPY within the foreign exchange market.

Considering that it’s a day trading system, we recommend that you apply it on the lower time frame charts, starting from M5.

Chart Setup

MetaTrader 4 Indicators: MA_BBands.ex4 (Inputs Variable Modified; OsMA=12, Colors Modified; #0=Magenta, #1=Magenta), MACD.ex4 (Parameters Modified; Fast EMA=17, Slow EMA=31, MACD SMA=14)

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

Recommended Trading Sessions: Any

Currency Pairs: AUD/JPY + any other pair

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Buy Trade Example: AUD/JPY (Australian Dollar / Japanese Yen), 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 blue upward pointing arrow of the MA_BBands custom indicator pops up somewhat below the candlesticks as shown on Fig. 1.0, bulls are said to be driving price higher, as such a buy alert is said to be imminent.
  • If the silver histograms of the MACD Metatrader 4 indicator align above the 0.00 horizontal level as seen on Fig. 1.0, price is said to be pressured to the upside, thus a trigger to buy the selected currency pair.

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

Exit Strategy/Take Profit for Buy Entry

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

  • If the MA_BBands custom indicator pops up a red downward pointing arrow while a bullish trend is ongoing (see Fig. 1.0), bulls are said to be closing their positions increasingly, hence an exit or take profit stance is advised.
  • If the MACD forex indicator displays a silver histogram below the 0.00 reference level during the course a bullish trend, it is pointing to diminishing bulls power i.e. a signal to exit or take profit straightaway.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red downward pointing arrow of the MA_BBands custom indicator gets aligned above the price bars as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, thus a trigger to sell the currency pair of focus.
  • If the silver histograms of the MACD indicator align below the 0.00 reference level as depicted on Fig. 1.1, more and more bears are said to be opening positions in the market, therefore a sell signal will suffice.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the MA_BBands custom indicator displays a blue upward pointing arrow during the course of a bearish signal (refer to Fig. 1.0), bears power is said to be weaning, hence an exit of take profit stance is duly recommended.
  • If the MACD forex indicator displays a silver histogram above the 0.00 horizontal level while a bearish trend is running, it is signaling a likely bullish reversal, as such an exit or take profit stance is advised.

Sell Trade Example: AUD/JPY (Australian Dollar / Japanese Yen), M15 Chart

Fig. 1.1

Free Download

Download the AUD/JPY Forex Day Trading Strategy

About The Forex Technical Indicators Used

The MA_BBands custom indicator is a combination of the MA channels indicator and Bollinger Bands.

It is essentially a signal indicator that deploys the mechanism of the moving averages.

The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.

Easy Installation

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

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