EUR/CHF 1-Hour Forex Swing Trading Strategy
The EUR/CHF 1-hour Forex swing trading strategy is a Relative Vigor Index indicator based trend-following trading strategy that delivers great results on any currency pair.
The inclusion of the additional Slope Direction Line and SMA Crossover Signal indicators provide better accuracy of the trading signals.
Once you have completed setting up the parameters for the indicators as instructed here, your chart should appear as those seen in the images below:
MetaTrader 4 Indicators: Slope Direction Line.ex4 (Default Setting), SMA-Crossover_Signal.ex4 (Inputs Variable Modified; FasterSMA=18, SlowerSMA=36, Colors Width Modified; #0=5, #1=5), Relative Vigor Index.ex4 (Parameters Modified; Period=32)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: EUR/CHF (EURO / Swiss Franc), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the light blue line of the Slope Direction Line custom indicator aligns somewhat below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside, as such a trigger to go long is apt.
- If the spring green upward pointing arrow of the SMA-Crossover_Signal forex indicator aligns below the price bars as seen on Fig. 1.0, bulls are said to be driving price higher, thus a signal to buy the underlying forex pair.
- If the red and green lines of the Relative Vigor Index Metatrader 4 forex indicator break and hover above the zero signal level, the overall market sentiment is said to be bullish i.e. a trigger to buy the selected currency pair.
Stop Loss for Buy Entry: Place stop loss below swing support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the Slope Direction Line indicator turns tomato during the course of a bullish trend (checkout Fig. 1.0), bulls power is said to be weaning, thus a trigger to exit or take profit at once.
- If the SMA-Crossover_Signal custom indicator pops up a red downward pointing arrow during the course of a bullish trend, it is indicative of a possible bearish reversal, therefore an exit or take profit stance is advised.
- If the green line of the Relative Vigor Index indicator dips below the 0.00 reference level during the course of a bullish trend, price is said to be making a U-turn, thus an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the tomato filled Slope Direction Line forex indicator positions fairly above the price bars as depicted on Fig. 1.1, market is said to favor downward pressures, thus a sell alert is imminent.
- If red downward pointing arrow of the SMA-Crossover_Signal fx indicator pops up above the price bars as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, i.e. a trigger to go short on the currency pair of interest.
- If the red and green lines of the Relative Vigor Index forex indicator surge below the zero reference level (see Fig. 1.1), the general market sentiment is said to be bearish i.e. a trigger to sell the designated currency pair.
Stop Loss for Sell Entry: Place stop loss above swing resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Slope Direction Line indicator turns light blue while a bearish trend is running (checkout Fig. 1.1), bear market power is said to be halting, as such an exit or take profit stance is recommended.
- If the SMA-Crossover_Signal custom indicator pops up a spring green upward pointing arrow while a bearish trend is on course, a bullish reversal is said to be on the horizon, thus an exit or take profit stance will do.
- If the green line of the Relative Vigor Index indicator surges above the 0.00 reference level while a bearish trend is on course, bears are said to be leaving the market in their droves, thus an exit or take profit stance is suitable.
Sell Trade Example: EUR/CHF (EURO / Swiss Franc), H1 Chart
About The Forex Technical Indicators Used
The Slope Direction Line is a trend following indicator that resembles the moving average but offers less lag.
The indicator has its period set to a default value of 80.
The SMA-Crossover_Signal is a technical tool that uses arrows to show the crossover of two simple moving averages, one faster SMA and a slower SMA.
The Relative Vigor Index technical indicator is a technical tool that gauges the conviction of a recent price action and the likelihood that it will continue.
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