AUD/NZD Forex Day Trading Strategy
The AUD/NZD Forex day trading strategy offers traders a unique way of reacting to price action and profiting off such market moves.
The strategy deploys three powerful technical indicators and depicts fantastic trend following characteristics for its users.
Considering its simplicity of use, newcomers in the currency market are rapidly adopting this trading strategy as their leading system.
Interestingly, the AUD/NZD Forex day trading strategy offers plenty of opportunity for day traders.
Consequently, the strategy is able to accommodate a wide-range of currency pairs that are included on the MT4 platform.
MetaTrader 4 Indicators: Heiken_Ashi_Smoothed.ex4 (Inputs Variable Modified; MaPeriod=12), i-AMA-Optimum.ex4 (Default Setting), Moving Average of Oscillator.ex4 (Parameters Modified; Fast EMA=23, Slow EMA=36, MACD SMA=19)
Preferred Time Frame(s): 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour
Recommended Trading Sessions: Any
Currency Pairs: AUD/NZD + any other pair
Buy Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M15 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the black dotted orange line of the i-AMA-Optimum custom indicator runs below the lime candle-like bodies of the Heiken_Ashi_Smoothed forex indicator as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the selected currency pair.
- If the silver histograms of the Moving Average of Oscillator Metatrader 4 forex indicator align above the 0.00 reference level as shown on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert will suffice.
Stop Loss for Buy Entry: Place stop loss 3 pips 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 the Heiken_Ashi_Smoothed custom indicator pops up a red candle-like body while a bullish trend is ongoing, bulls power is said to be weaning, hence it is a trigger to exit or take profit immediately.
- If the Moving Average of Oscillator indicator displays a silver histogram below the zero reference level during the course of a bullish trend, bulls are said to be leaving the market in their droves, thus an exit or take profit stance will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the black dotted orange line of the i-AMA-Optimum custom indicator runs above the lime candle-like bodies of the Heiken_Ashi_Smoothed forex indicator as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to sell the designated currency pair.
- If the silver histograms of the Moving Average of Oscillator forex indicator align below the 0.00 horizontal level as seen on Fig. 1.1, bears are said to be dragging price lower, therefore a sell alert is on the horizon.
Stop Loss for Sell Entry: Place stop loss 3 pips above previous swing high resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Heiken_Ashi_Smoothed custom indicator pops up a lime candle-like body during the course of a bearish trend, bears power is said to be halting, hence it is a trigger to exit or take profit forthwith.
- If the Moving Average of Oscillator indicator displays a silver histogram above the zero reference level while a bearish trend is ongoing, more and more bears are said to be closing their market orders, as such an exit or take profit stance is apt.
Sell Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M15 Chart
About The Forex Technical Indicators Used
The Heiken_Ashi_Smoothed indicator uses filled candle like bars either place above or below the candlesticks to define trends.
The i-AMA-Optimum is an optimized version of the Kaufman’s Adaptive Moving Average (AMA) that was originally developed by Perry Kaufman and finds use on short and long periods.
The Moving Average of Oscillator or OsMA is a tool that tries to spot overbought or oversold conditions by gauging how far an oscillator lies from its moving average.
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