The Awesome Oscillator forex strategy is a currency trading strategy that is able to measure the momentum in the market and also define the most probable trend for a given session.
The strategy does this by combining the Awesome_Signal.ex4 custom indicator and the Drive MT4 indicator.
Chart Setup
MetaTrader4 Indicators: Awesome_Signal.ex4 (default setting), Drive.ex4 (default setting)
Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly
Recommended Trading Sessions: Any
Currency Pairs: Any
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy position if the following indicator or chart plays out on the activity chart:
- If the gold line of the Awesome_Signal.ex4 custom indicator breaks above the 0.00 level, while also forming histograms above the said level. A green histogram above the 0.00 level denotes a strong bullish trend, while a red histogram above the same level depicts weaning bullish momentum.
- If the green line of the Drive custom indicator crosses its red line upwards and stays above its red line, then we can confirm this to be a bullish signal. The greater the gap between these lines, the stronger the trend will be.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on position(s) if the following conditions hold sway:
- If the gold line of the Awesome_Signal.ex4 indicator breaks below the 0.00 level, then we can exit or take profit on position(s) accordingly.
- If the green line of the Drive custom indicator crosses its red line downwards, as seen on Fig. 1.0, it is a trigger to exit or take profit accordingly.
Sell Entry Rules
Enter a sell in the market if the following chart or indicator pattern gets displayed:
- If the gold line of the Awesome_Signal.ex4 breaks below the 0.00 level, it denotes a sell signal. The formation of red histograms below the 0.00 level is an indication of a strong sell, while green histograms below this level denotes a weak sell.
- If the red line of the Drive indicator crosses the green line upwards and stays above it, this is an indication that we are in for a bearish trend i.e. short entry. If the gap between these lines widens, then we can say that the trend is strong, but a slim gap between the lines suggest a weak trend.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry:
Exit or take profit if the following chart or indicator patterns are on display:
- If the gold line of the Awesome_Signal.ex4 MT4 indicator breaks above the 0.00 level, an exit or take profit is triggered.
- If the red line of the Drive indicator cuts the green line downwards, this is a signal to exit or take profit accordingly.
Fig. 1.1
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About The Trading Indicators
The Awesome_Signal.ex4 custom indicator just like any other oscillator has its values fluctuate above and below the zero signal line. In so doing it depicts the difference between the 4 SMA and 34 SMA.
The Drive custom indicator is a trend reversal signal indicator. If the red and the green line intersect, it is an indication that trend is about to change.
If the red line stays above the green line, it is a sell, while when the green line stays above the red line, it suggests a buy.