EUR/JPY 1-Hour Forex Swing Trading Strategy

Patience is required knowing you have to hold trades for several days at a time when swing trading.

This style of trading is ideal for people who are unable to monitor their charts throughout the course of the day.

Due to the medium-term hold period, spreads won’t necessarily have as much of an impact on your overall profits when trading the EUR/JPY 1-Hour Forex swing trading strategy.

Consequently, currency trading pairs with wider spreads and lower liquidity is admissible.

This strategy implements a unique technical analysis setup that helps determine price trends and patterns in a manner that captures a larger price move.

Chart Setup

MetaTrader4 Indicators: AVQ_trend.ex4 (Inputs Variable Modified; Length=15), MA Histogram.ex4 (Inputs Variable Modified; MA Period=50)

Preferred Time Frame(s): 1-Hour, 4-Hours

Recommended Trading Sessions: Any

Currency Pairs: EUR/JPY and any other pair

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

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following chart or indicator pattern takes preference:

  1. If the AVQ_trend Metatrader 4 custom indicator displays green bars within the activity chart as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the stipulated forex pair.
  2. If the dodger blue bars of the MA Histogram MT4 indicator piles up within its indicator window as illustrated on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy entry will suffice.

Stop Loss for Buy Entry: Place stop loss below medium-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes preference:

  1. If while a bullish trend is ongoing, the AVQ_trend indicator pops up a red bar that superimposes the candlesticks (refer to Fig. 1.0), price is said to be making a likely U-turn, hence an exit or take profit will suffice.
  2. If the MA Histogram indicator display a hot pink bar that lines up its indicator window during a bullish trend, bulls power is said to be weaning, as such an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds dominance on the activity chart:

  1. If the AVQ_trend custom indicator displays red bars within the activity chart as indicated on Fig. 1.1, more bears are said to be flooding the market, therefore it is a trigger to sell the designated currency pair.
  2. If the hot pink bars of the MA Histogram indicator queues up within its indicator window as demonstrated on Fig. 1.1, the general market sentiment is said to be bearish, hence a signal to go short on the EUR/JPY.

Stop Loss for Sell Entry: Place stop loss above medium-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish trend is running, the AVQ_trend indicator pops up a green bar that overlays the price bars (see Fig. 1.1), price is said to be making a probable reversal, therefore an exit or take profit will do.
  2. If the MA Histogram indicator displays a dodger blue bar that sits within the indicator window, bears power is said to be halting, hence a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

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

About The Trading Indicators

The AVQ_Trend.ex4 custom indicator is a trend following indicator that paints the candlesticks green during a bullish trend and red during a bearish trend.

The MA Histogram.ex4 custom indicator is a trend following system that is built on top of four moving averages methods (simple, exponential, smoothed and linear weighted).

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