The CHF/JPY 1-hour Forex swing trading strategy was designed to capture swing trends at their early stages, before the actual move begins.
Buy and sell Forex signals are carefully triggered via the use of three dominant technical indicators i.e. DEMA, Doda-Donchian and MACD.
Users will take advantage of the 1-hour, 4-hour, daily or even weekly charts.
This invariably means that this swing strategy will yield better results, considering the increased relevance in longer-term price analysis.
MetaTrader 4 Indicators: DEMA.ex4 (Colors Width Modified; #0=2), Doda-Donchian.ex4 (Colors Modified; #2=Blue, Colors Width Modified; #2=2), MACD.ex4 (Parameters Modified; Fast EMA=17, Slow EMA=31, MACD SMA=14)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: CHF/JPY + any other pair
Buy Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue Doda-Donchian custom indicator line crosses below the red DEMA indicator line with price staying somewhat above the lines as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the designated currency pair.
- If the silver histograms of the MACD Metatrader 4 forex indicator align above the zero horizontal level as shown on Fig. 1.0, price is said to be driven to the upside, as such a buy alert will suffice.
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 Doda-Donchian indicator line intersects the red DEMA indicator line (refer to Fig. 1.0), bulls are said to be closing their market orders more and more, therefore an exit or take profit stance is advised.
- If the MACD forex indicator pops up a silver histogram below the 0.00 horizontal line while a bullish trend is running, a bearish reversal is said to be underway, hence a signal to exit or take profit immediately.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue Doda-Donchian custom indicator line crosses above the red DEMA indicator line with price staying rather below the lines as depicted on Fig. 1.1, the general market sentiment is said to be bearish, thus a signal to sell the currency pair of interest.
- If the silver histograms of the MACD forex indicator hover below the zero horizontal level as illustrated on Fig. 1.1, the market is said to be experiencing more downward pressures, therefore a trigger to go short on the designated currency pair is recommended.
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 Doda-Donchian indicator line intersects the red DEMA indicator line (see Fig. 1.1), bears are said to be closing their market positions increasingly, as such it is a trigger to exit or take profit forthwith.
- If the MACD forex indicator pops up a silver histogram above the 0.00 horizontal line during a bearish run, price is said to be making a U-turn, hence a signal to exit or take profit on the selected fx pair.
Sell Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), H1 Chart
About The Forex Technical Indicators Used
The Double Exponential Moving Average (DEMA) was designed by Patrick Mulloy as a tool to better respond to market trend changes.
The computation of the DEMA is built around a single exponential moving average and a double EMA.
The Doda-Donchian is a custom indicator produced by Gopal Krishan Doda and popularly known as the turtle indicator.
It is a trend following indicator that deploys the EMA (120) coupled with other values to eliminate noise when scanning the market for trend changes.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.
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