The Ahoora Forex trading strategy is designed to capture impressive market moves to the upside or downside.
We are using some simple, yet effective technical indicators to accomplish this.
Let’s get started with the easy setup:
Trade Setup
MT4 Indicators: ahoora-indicator.ex4 (Default Setting), macd-color-indicator.ex4 (Default Setting), Stochastic Oscillator.ex4 (Parameters Modified; %K period=15, %D period=9, Slowing=9)
Suitable for: Scalping, day trading, swing trading
Trading Time: 24/7, Around the Clock
Trading instruments: currency pairs, cryptocurrency
Time frames: Any
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Buy Trade Example: BTC/USD (Bitcoin / US Dollar), H4 Chart
Fig. 1.0
Strategy Rules
Buy Signal
Open a buy trade if the following trading conditions appear on the trading chart:
- If the ahoora-indicator custom MT4 indicator displays a lime line that’s aligned fairly below the candlesticks as seen on Fig. 1.0, the BTC/USD price is said to be pressured to the upside, therefore a buy trigger will suffice.
- If the lime green histograms of the macd-color-indicator pops up above the 0.00 horizontal level as shown on Fig. 1.0, market speculation on the BTC/USD is said to be bullish.
- If the lines (light sea green and red dotted) of the Stochastic Oscillator break above the 50.00 alert level, price is said to be reaching higher highs, as such a buy alert will do.
Suggested Stop Loss for Buy Trade: Place stop loss below immediate support.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions appear on the chart:
- If the ahoora-indicator pops up a red line on the chart as illustrated on Fig. 1.0, bullish sentiment is said to be weaning, hence a trigger to exit or take profit on the digital currency of interest.
- If the macd-color-indicator displays a red histogram that is positioned below the 0.00 level, bullish drivers are said to be leaving the BTC/USD market increasingly, hence an exit or take profit is duly advised.
- Wait for the light sea green line of the Stochastic Oscillator to dip below the 50.00 level during a bullish trend, it is an indication of a likely bearish reversal, as such an exit or take profit is recommended on open BTC/USD contracts.
Sell Signal
Open a sell trade if the following trading conditions appear on the trading chart:
- If the ahoora-indicator displays a red line that’s aligned slightly above the price bars as illustrated on Fig. 1.1, the current momentum for the BTC/USD is said to be in favor of downward risk, thus a signal to go short on the selected digital currency.
- If the red histograms of the macd-color-indicator gets aligned below the 0.00 horizontal level as exemplified on Fig. 1.1, BTC/USD is said to breakout into a downward trend.
- If the lines (light sea green and red dotted) of the Stochastic Oscillator break and stay below the 50.00 alert level, price is said to be making lower lows, as such a sell signal is recommended.
Suggested Stop Loss for Sell Trade: Place stop loss above immediate resistance.
Suggested Exit Strategy/Take Profit for Sell Trade
Exit the sell trade if the following trading conditions appear on the chart:
- If the ahoora-indicator displays a lime line on the price chart during a bearish trend, bearish sentiment is said to be diminishing, as such an exit or take profit stance is advised.
- If the macd-color-indicator reveals a lime green histogram that stays above the 0.00 level, price is making a probable U-turn, hence an exit or take profit is duly recommended.
- Watch for the light sea green line of the Stochastic Oscillator to surge above the 50.00 level while a bearish trend is running, it is pointing to a possible bullish reversal, thus a trigger to exit or take profit at once.
Sell Trade Example: BTC/USD (Bitcoin / US Dollar), H4 Chart
Fig. 1.1
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About The Technical Indicators Used
The ahoora-indicator is an oscillator that combines the exponential moving average (EMA), relative strength index (RSI), and average true range (ATR) indicator to offer a simple trend signal.
The macd-color-indicator is a technical tool that is similar to the traditional MACD indicator.
The Stochastic Oscillator is a custom Metatrader 4 indicator that help traders gauge the relationship between a currency’s closing price and its price range over a specified time period.