The EUR/GBP 1-hour Forex swing trading strategy was designed to assist trend-following currency traders spot genuine swing market trends and great trade opportunities.
A simple moving average crossover technique works in agreement with the Spearman oscillator to bring you the very best buy/sell swing trade signals that work.
This strategy can be applied to the EUR/GBP and any other forex pair of your choice.
Use on time frames starting from M30 and above for best performance.
In order to put everything into perspective, lets examine the buy/sell trading rules and example charts below.
MetaTrader 4 Indicators: Envelopes.ex4 (Parameters Modified; Period=36, Colors Modified; Lower Band=None), JMA.ex4 (Inputs Variable Modified; BarCount=3000000), SpearmanRankCorr.ex4 (Inputs Variable Modified; rangeN=28)
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/GBP (EURO / Great British Pound), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue Envelopes Metatrader 4 indicator line crosses below the red JMA indicator line in a bottom up manner as depicted on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated forex pair.
- If the dark blue line of the SpearmanRankCorr indicator breaksand hovers above the zero horizontal level as illustrated on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert will suffice.
Stop Loss for Buy Entry: Place stop loss 5 pips below the previous swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the blue Envelopes forex indicator line intersects the red JMA indicator line during the course of a bullish trend, bulls power is said to be diminishing, as such an exit or take profit stance is recommended.
- If the dark blue line of the SpearmanRankCorr custom indicator breaksbelow the 0.00 horizontal level (see Fig. 1.0), it is signaling bullish exhaustion, therefore an exit or take profit stance is duly advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue Envelopes indicator line crosses above the red JMA indicator line in a top downward fashion as shown on Fig. 1.1, price is said to be pushed lower, as such a sell alert is said to be imminent.
- If the dark blue line of the SpearmanRankCorr forex indicator dips and hovers below the zero reference level as exemplified on Fig. 1.1, the dominant sentiment in the market is said to be bearish, therefore a sell alert will do.
Stop Loss for Sell Entry: Place stop loss 5 pips above the previous swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is runningand the blue Envelopes forex indicator line intersects the red JMA indicator line, bears power is said to be halting, as such an exit or take profit stance is advised.
- If the dark blue line of the SpearmanRankCorr indicator surgesabove the zero reference level (refer to Fig. 1.1), a bullish reversal is said to be on the horizon, thus a trigger to exit or take profit immediately.
Sell Trade Example: EUR/GBP (EURO / Great British Pound), H1 Chart
About The Forex Technical Indicators Used
The Envelopes forex indicator is a technical tool that tries to spot the upper and lower bands of a trading range.
The Jurik Moving Average (JMA) has an improved timing and smoothness, while tracking the chart’s quick up/down gapping action.
The SpearmanRankCorr custom indicator for MT4 was initially implemented from the field of statistics by Charles Spearman in 1904.
It was able to design a statistical gauge for the strength of association between two variables.
It became the basis of the rank correlation coefficient and was named after its creator (Spearman’s rank correlation coefficient).
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