EUR/CAD 1-Hour Forex Swing Trading Strategy

The EUR/CAD 1-hour Forex swing trading strategy is unbelievably simple and uses some of the best forex indicators for spotting profitable buy and sell trends on the higher time frames.

This strategy shows that adopting just a couple of indicators with a few signal balls is just about all you need to make money trading currencies online.

This swing trading strategy is fully applicable on diverse forex pairs and fits well on a wide-range of higher time frames.

Chart Setup

MetaTrader 4 Indicators: SHI_SilverTrendSig.ex4 (Inputs Variable Modified; Otstup=40, Per=36.0), Colors Width Modified; #0=3, #1=3), SEFC084.ex4 (Inputs Variable Modified; period=32), Average Directional Movement Index.ex4 (Parameters Modified: Period=28)

Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: EUR/CAD + any other pair

Download

Download the EUR/CAD 1-Hour Forex Swing Trading Strategy 

Buy Trade Example: EUR/CAD (EURO / Canadian Dollar), 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 red signal ball of the SHI_SilverTrendSig custom indicator forms below the candlesticks as seen on Fig. 1.0, bulls are said to be driving price higher, thus a trigger to buy the designated currency pair.
  • If the deep sky blue bars of the SEFC084 custom indicator stack up above the 0.00 horizontal level as shown on Fig. 1.0, it is pointing to mounting bulls pressure, hence a signal to go long on the designated forex pair.
  • If the light sea green line of the ADX Metatrader 4 indicator breaks above the 20.00 horizontal level as illustrated on Fig. 1.0, a strong trend is said to be forming and we’ll require directional confirmation from the other technical indicators.

Stop Loss for Buy Entry: Place stop loss 5 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 on course, the SHI_SilverTrendSig custom indicator pops up a blue signal ball on the activity chart, it is signaling exhaustion in bulls’ power, therefore an exit or take profit stance is advised.
  • If the SEFC084 custom indicator pops up a violet bar that is aligned below the 0.00 reference level during a bullish trend, bulls are said to be leaving the market in their droves, thus a signal to exit or take profit forthwith.
  • If the light sea green line of the Average Directional Movement Index indicator slips below the 20.00 level as depicted on Fig. 1.0, a bearish reversal is said to be imminent, thus a trigger to exit or take profit immediately.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the blue signal ball of the SHI_SilverTrendSig custom indicator pops up above the price bars as exemplified on Fig. 1.1, bears are said to be pushing for lower prices, therefore a sell signal will suffice.
  • If the violet bars of the SEFC084 custom indicator stack up below the 0.00 reference level as depicted on Fig. 1.1, bears are said to be driving market sentiments, as such a sell order will do.
  • If the light sea green line of the ADX indicator breaks above the 20.00 horizontal level (refer to Fig. 1.1), a strong trend is said to be developing and we’ll need directional confirmation from the other technical indicators.

Stop Loss for Sell Entry: Place stop loss 5 pips above swing resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If while a bearish trend is on course, the SHI_SilverTrendSig custom indicator pops up a red signal ball on the chart window, bears power is said to be halting, therefore an exit or take profit stance is recommended.
  • If the SEFC084 custom indicator displays a deep sky blue bar that is positioned above the 0.00 reference level while a bearish trend is ongoing (see Fig. 1.1), bears are said to be closing their positions more and more i.e. a trigger to exit or take profit at once.
  • If the light sea green line of the Average Directional Movement Index indicator dips below the 20.00 level during a bearish trend, a bullish reversal is said to be in the cards, thus a trigger to exit or take profit without delay.

Sell Trade Example: EUR/CAD (EURO / Canadian Dollar), H1 Chart

Fig. 1.1

Free Download

Download the EUR/CAD 1-Hour Forex Swing Trading Strategy

About The Forex Technical Indicators Used

The SHI_SilverTrendSig is a custom built indicator for Metatrader 4 and usually deployed in spotting trends.

It appears on chart in the form of a red (bullish trend) and blue (bearish) signal balls, aligned below and above price bars respectively.

The SEFC084 custom indicator is based on the SEFC indicators and it is used to point traders to the direction of the prevalent market trend.

The Average Directional Movement Index or ADX is a forex indicator that is deployed in determining the strength of a trend.

It is usually deployed within a forex chart window and it showcases three lines, with two representing the DMI (Directional Movement Indicators).

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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