The 1-Hour Forex swing trading strategy for CAD/JPY is a potent trading strategy that works during strong market trends and has the potential to turn in great profits every week.
Most notably, the accuracy of the technical indicators that are deployed here allows users to initiate only the most precise and strongest positions from the pool of trading opportunities that are constantly being offered up by the currency market.
Asides the CAD/JPY pair, the strategy works on any other forex pair of your choice.
Chart Setup
Metatrader 4 Indicators: Moving Average.ex4 (Parameters Modified; Period=16), Parabolic-close.ex4 (Default Setting), OsMACD.ex4 (Inputs Variable Modified; FastEMA=14, SlowEMA=28, SignalSMA=11)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: CAD/JPY | Any pair
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Buy Trade Example: CAD/JPY (Canadian Dollar / Japanese Yen), 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 blue line of the Parabolic-close custom indicator crosses below the red 16 SMA Metatrader 4 indicator line as illustrated on Fig. 1.0, bulls are said to be driving price higher, as such a buy alert is said to be looming.
- If the blue and red histograms of the OsMACD custom indicator hover above the 0.00 horizontal level as depicted on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the designated currency pair.
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 blue Parabolic-close indicator line and the red 16 SMA indicator line intersects (see Fig. 1.0), a bearish reversal is said to be underway, therefore an exit or take profit stance is recommended.
- If the OsMACD custom indicator pops up a red histogram below the 0.00 reference level while a bullish trend is on course, bulls power is said to be weaning, hence a signal to exit or take profit forthwith.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue line of the Parabolic-close custom indicator crosses above the red 16 SMA forex indicator line as exemplified on Fig. 1.1, bears are said to be dragging price lower i.e. a trigger to go short on the currency pair of interest.
- If the red and blue histograms of the OsMACD custom indicator run below the 0.00 signal level as seen on Fig. 1.0, the general market sentiment is said to be bearish, hence a sell alert will suffice.
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 during the course of a bearish trend, the blue Parabolic-close indicator line and the red 16 SMA indicator line intersects (refer to Fig. 1.1), bearish momentum is said to be diminishing, thus an exit or take profit stance will do.
- If the OsMACD custom indicator pops up a blue histogram above the 0.00 horizontal level while a bearish trend is still running, bears power is said to be halting, hence a signal to exit or take profit straightaway.
Sell Trade Example: CAD/JPY (Canadian Dollar / Japanese Yen), H1 Chart
Fig. 1.1
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About The Forex Technical Indicators Used
The 16 SMA (Simple Moving Average) is a technical analysis indicator that smooths out currency price data by constantly creating an updated average price over 16 periods.
The Parabolic-close custom indicator is an enhanced Parabolic SAR indicator that can be used in analyzing trending markets.
The Parabolic-close is constructed on the price chart in the form of a line.
It shares a lot of similarities with the Moving Average Indicator but the only difference is that it moves with higher acceleration and may alter its position in relation to price.
The OsMACD custom indicator integrates the colored Moving Average of Oscillator (OsMA) and the Moving Average Convergence/Divergence (MACD) indicators into one technical tool.
Easy Installation
Start using this forex strategy in just 5 minutes. Click here to get started now.