The EUR/AUD 1-hour Forex swing trading strategy combines the CCI indicator and a trend-following crossover system to issue buy and sell trading signals that work for swing traders.
Trade signals are plotted in line with the predefined trading rules that easily reveal entry/exit price setups swing traders can quickly make sense of.
This strategy has been tested to work flawlessly across diverse currency pairs, including the EUR/AUD pair, as well as other investment vehicles like stocks and cryptocurrencies.
MetaTrader 4 Indicators: RSTL.ex4 (Colors Width Modified; #0=2), i-AMMA.ex4 (Inputs Variable Modified; MA_Period=7, Colors Width Modified; #0=2), Commodity Channel Index.ex4 (Parameters Modified; Period=35)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: EUR/AUD (EURO / Australian Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the dark violet RSTL custom indicator line crosses below the gold i-AMMA forex indicator line as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated currency pair.
- If the light sea green line of the Commodity Channel Index Metatrader 4 forex indicator breaksand hovers above the 0.00 reference level as seen on Fig. 1.0, it is pointing to weaning bulls power, thus a signal to buy the selected forex pair.
Stop Loss for Buy Entry: Place stop loss 3 pips below swing 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 dark violet RSTL indicator line intersects the gold i-AMMA indicator line, bulls are said to be losing steam, therefore an exit or take profit trigger is recommended.
- If the light sea green line of the Commodity Channel Index indicator dips below the zero horizontal level during the course of a bullish trend (see Fig. 1.0), a bearish reversal is said to be imminent, hence an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the dark violet RSTL custom indicator line crosses above the gold i-AMMA forex indicator line as illustrated on Fig. 1.1, price is said to be dragged lower, thus a signal to sell the stipulated forex pair.
- If the light sea green line of the Commodity Channel Index indicator breaks and run below the 0.00 horizontal level as depicted on Fig. 1.1, bears are said to be pushing price lower, therefore a sell entry will suffice.
Stop Loss for Sell Entry: Place stop loss 3 pips above swing 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 dark violet RSTL indicator line intersects the gold i-AMMA indicator line, it is indicative of weaning bears power, hence a signal to exit or take profit straightaway.
- If the light sea green line of the Commodity Channel Index indicator breaks above the zero reference level while the bearish trend is ongoing (refer to Fig. 1.1), a bullish reversal is said to be in the cards, therefore an exit or take profit stance is advised.
Sell Trade Example: EUR/AUD (EURO / Australian Dollar), H1 Chart
About The Forex Technical Indicators Used
The Reference Slow Trend Line or RSTL is a “slow” response trend line.
The indicator is similar to the simple moving averages because of their delay “lag” in relation to the current prices.
The i-AMMA is by default a 25-day Average Modified Moving Average that is deployed as a price filter.
The Commodity Channel Index or CCI is a momentum based indicator that falls under the oscillator classification.
Regardless of its name, the CCI is not exclusively designed for the commodity market, but can be used in the forex market to gauge overbought/oversold conditions, as well as spot trends.
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