AUD/USD 1-Hour Forex Swing Trading Strategy

The AUD/USD 1-Hour Forex swing trading strategy combines a triple moving average alert system, ADX and the RVI oscillator to predict future price movements for swing traders.

This strategy fits best to the H1, H4 and Daily charts.

We are looking to capture bigger price movements with this strategy, in the 75-200 pip range.

Once the indicators have been rightly installed, your MT4 trading screen will look like those shown in the examples below:

Chart Setup

MetaTrader 4 Indicators: 3_MA_Cross_w_Alert_v2.ex4 (Inputs Variable Modified; FasterMA=10, Colors Width Modified; #0=3, #1=3), advanced_adx.ex4 (Inputs Variable Modified; ADXPeriod=36), Relative Vigor Index.ex4 (Parameters Modified; Period=32)

Preferred Time Frame(s): 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: AUD/USD + any other pair

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Buy Trade Example: AUD/USD (Australian Dollar / US Dollar), H1 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 red upward pointing arrow of the 3_MA_Cross_w_Alert_v2 custom indicator gets aligned somewhat below the candlesticks as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, as such a buy alert is said to be forthcoming.
  • If the green histograms of the advanced_adx custom indicator get stacked within the indicator window as shown on Fig. 1.0, bulls are said to be driving price higher i.e. a trigger to buy the designated currency pair.
  • If the green and red lines of the Relative Vigor Index Metatrader 4 forex indicator break and hover above the zero horizontal level as seen on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the currency pair of interest.

Stop Loss for Buy Entry: Place stop loss 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, the 3_MA_Cross_w_Alert_v2 indicator pops up a green downward pointing arrow above the price bars, more and more bulls are said to be leaving the market, hence an exit or take profit stance is advised.
  • If the advanced_adx indicator displays a red histogram while a bullish trend is running (see Fig. 1.0), bulls power is said to be weaning, thus a signal to exit or take profit immediately.
  • If the green line of the Relative Vigor Index indicator dips below the zero horizontal level during the course of a bullish trend, it is a signal to exit or take profit straightway.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the green downward pointing arrow of the 3_MA_Cross_w_Alert_v2 custom indicator gets aligned fairly above the price bars as exemplified on Fig. 1.1, bears are said to be driving price lower, therefore a sell alert will suffice.
  • If the red histograms of the advanced_adx custom indicator get stacked within the indicator window as depicted on Fig. 1.1, the market is said to be supporting lower prices i.e. a signal to sell the designated forex pair.
  • If the green and red lines of the Relative Vigor Index forex indicator break and run below the zero reference level as demonstrated on Fig. 1.1, price is pointing to diminishing bears power, thus an alert to sell the currency pair of interest.

Stop Loss for Sell Entry: Place stop loss above medium-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the 3_MA_Cross_w_Alert_v2 indicator pops up a red upward pointing arrow below the candlesticks while a bearish trend is on, bears are said to be closing their orders increasingly, hence an exit or take profit stance is duly recommended.
  • If the advanced_adx indicator displays a green histogram while a bearish trend is on course, a bullish reversal is said to be in the offing, thus a signal to exit or take profit straightaway.
  • If the green line of the Relative Vigor Index indicator surges above the 0.00 center line while a bearish trend is running (refer to Fig. 1.1), it is a signal to exit or take profit forthwith.

Sell Trade Example: AUD/USD (Australian Dollar / US Dollar), H1 Chart

Fig. 1.1

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Download the AUD/USD 1-Hour Forex Swing Trading Strategy

About The Forex Technical Indicators Used

The 3_MA_Cross_w_Alert_v2 custom indicator is a forex technical study that displays arrows on the chart, with red arrows denoting bullish trends and green defining bearish trends.

The advanced-adx is a technical tool that is deployed in detecting strong directional moves.

It is used in gauging the strength and weakness of an underlying trend.

The Relative Vigor Index technical indicator is a technical tool that gauges the conviction of a recent price action and the likelihood that it will continue.

Easy Installation

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

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