EUR/JPY 1-Hour Forex Swing Trading Strategy

The EUR/JPY 1-hour Forex swing trading strategy deploys a unique moving average crossover technique, along with the MACD indicator to pinpoint exact entry and exit price levels for swing traders.

Essentially, this strategy eliminates most of the trend analyzing difficulties of its users and ensures the best possible entry and exit signals.

This swing strategy works perfectly for medium and long term traders because it suits the M30, H1, and other higher time frame charts.

Asides Forex trading, this strategy can be applied to trade cryptocurrencies, stocks and options.

Chart Setup

MetaTrader 4 Indicators: SuperTrend.ex4 (Inputs Variable Modified; Nbr_Period24, Colors Modified; #1=Lime), SuperTrend-signals.ex4 (Inputs Variable Modified; TrendCCI_Period=10, Colors Modified; #0=Blue, #1=Blue), 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: EUR/JPY + any other pair

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Buy Trade Example: EUR/JPY (EURO / Japanese Yen), 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 lime line of the SuperTrend indicator crosses below the blue SuperTrend-signals indicator line in a bottom up manner as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the underlying forex pair.
  • If the silver histograms of the MACD Metatrader 4 indicator align above the zero horizontal level as seen on Fig. 1.0, the overall market sentiment is said to be bullish, hence a trigger to buy the designated forex pair.

Stop Loss for Buy Entry: Place stop loss below longer-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 ongoingand the lime SuperTrend indicator line intersects the blue SuperTrend-signals line, as illustrated on Fig. 1.0, bulls power is said to be weaning, as such an exit or take profit stance is recommended.
  • If the silver histograms of the MACD indicator readjust to align below the 0.00 signal level, it is pointing to diminishing bulls power, therefore an exit or take profit stance will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the lime line of the SuperTrend indicator crosses above the blue SuperTrend-signals indicator line in a top downward fashion as depicted on Fig. 1.1, price is said to be dragged lower, thus a signal to sell the selected fx pair.
  • If the silver histograms of the MACD indicator align below the zero horizontal level as exemplified on Fig. 1.1, the general market sentiment is said to bearish, hence a signal to sell the currency pair of focus.

Stop Loss for Sell Entry: Place stop loss above longer-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 lime SuperTrend indicator line intersects the blue SuperTrend-signals indicator line (refer to Fig. 1.1), bears power is said to be halting, as such an exit or take profit stance is advised.
  • If the silver histograms of the MACD indicator realign to stay above the 0.00 reference level, a bullish reversal is said to be imminent, as such an exit or take profit stance will do.

Sell Trade Example: EUR/JPY (EURO / Japanese Yen), H1 Chart

Fig. 1.1

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About The Forex Technical Indicators Used

The SuperTrend indicator is a trend following and non-repainting custom indicator that is based on the CCI technical indicator.

SuperTrend-signals custom MT4 indicator is a trend following indicator that functions like the moving average indicator.

The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.

Easy Installation

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

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