AUD/NZD 1-Hour Forex Swing Trading Strategy
The AUD/NZD 1-Hour Forex swing trading strategy is an amazing system that identifies buy/sell signal bullish and bearish breakout patterns.
Breakouts in some cases represent trend continuation and it somewhat implies that we can pick our entry point from the elaborated setup rules.
The goal of the strategy is to enter a position quickly when a breakout occurs and price tends to surge higher/lower.
With just two unique indicators, the AUD/NZD 1-Hour Forex swing trading strategy can lock in profits over several trading days.
This strategy works best on the higher time frames can be implemented across a wide range of currency pairs, including the AUD/NZD pair.
MetaTrader 4 Indicators: Limiteddonchianchanel.ex4 (Default Setting), Stochastic Oscillator.ex4 (Parameters Modified; %K period=19, %D period=6, Slowing=9)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If price breaks above the green Limiteddonchianchanel indicator resistance level, followed by an open & close candle above the same level (see Fig. 1.0), price is said to be pressured to the upside, as such a buy alert will suffice.
- If the light sea green and red dotted lines of the Stochastic Oscillator Metatrader 4 indicator break above the 50.00 horizontal level as illustrated on Fig. 1.0, bulls are said to be driving sentiments, therefore a buy alert is apt.
Stop Loss for Buy Entry: Place stop loss 5 pips below medium-term 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, price is seen to open and close below the red Limiteddonchianchanel indicator support level, bulls power is said to be diminishing, thus an exit or take profit stance is recommended.
- If the light sea green line of the Stochastic Oscillator dips below the 50.00 horizontal level during the course of a bullish trend (refer o Fig. 1.0), it is signaling a likely exhaustion in bulls strength, therefore it is a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If price breaks below the red Limiteddonchianchanel indicator support level, followed by an open & close candle below the same level as depicted on Fig. 1.1, bears are said to be driving price lower, thus a trigger to go short on the designated forex pair.
- If the light sea green and red dotted lines of the Stochastic Oscillator indicator dip below the 50.00 reference level as shown on Fig. 1.1, the general sentiment is said to be bearish, hence a trigger to sell the forex pair of focus.
Stop Loss for Sell Entry: Place stop loss 5 pips above medium-term 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, price is seen to open and close above the green Limiteddonchianchanel indicator resistance level, bears power is said to be weaning, thus an exit or take profit stance is advised.
- If the light sea green line of the Stochastic Oscillator surges above the 50.00 horizontal level while a bearish trend is ongoing, bears are said to be leaving the market increasingly, therefore it is a trigger to exit or take profit immediately.
Sell Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), H1 Chart
About The Forex Technical Indicators Used
The Limiteddonchianchanel indicator for MetaTrader4 is an enhanced Donchian Channel deployed to spot price breakouts below or above recent price history.
The Stochastic Oscillator is a momentum oscillator that is attributed to George Lane.
The indicator is made up of two lines, the %K fast line and the %D slow line, while it oscillates between 1 and 100.
Basically, the Stochastic indicator gauges the relationship between an assets closing price and its price range over a specified time period.
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