Forex Crossover Strategy For Metatrader 5

The Forex Crossover strategy for Metatrader 5 was designed to take advantage of the numerous trading opportunities that abounds in the vast currency market.

It’s a simple, yet effective forex strategy that is based on the CCI trend following crossover indicator that works in agreement with the Awesome Oscillator to generate its buy and sell signals.

Let’s quickly detail out the prerequisite for buy and sell trade entries.

Trade Setup 

MetaTrader 5 Indicators: Awesome Oscillator.ex5 (Default Setting), CCI_OBOS_Crossover.ex5 (Inputs Variable Modified; OBOS period=18, CCI period=28, Use OB/OS filter=Yes, Colors Modified; CCI OBOS Up=Magenta, CCI OBOS Down=Blue, Colors Width Modified; CCI OBOS Up=5, CCI OBOS Down=5)

Trade Style: Scalping, day trading, swing trading

Trading Sessions: London | New York | Tokyo

Currency Pairs: Majors, cross pairs, exotics

Platform: Metatrader 5 (MT5)

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Buy Trade Example: EURUSD, H1 Chart

Fig. 1.0

Trading Strategy Rules For Buy and Sell Trades Explained

Buy Entry

Enter a buy trade if the following trading conditions are met:

  1. If the histograms (green & red) of the Awesome Oscillator Metatrader 5 forex indicator break and stay above the 0.00 signal level (see Fig. 1.0), the overall market sentiment is said to be bullish, therefore a buy signal will suffice.
  2. If the magenta signal balls of the CCI_OBOS_Crossover custom indicator pops up on the activity chart as illustrated on Fig. 1.0, price is said to be pressured higher i.e. a trigger to go long on the designated forex pair.

Suggested Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions are met:

  1. If while a bullish trend is running, the Awesome Oscillator forex indicator displays a red histogram that is positioned below the 0.00 level as seen on Fig. 1.0, a bearish reversal is said to be imminent, as such it is a signal to exit or take profit at once.
  2. If the CCI_OBOS_Crossover custom indicator pops up a blue signal ball whiles a bullish trend is ongoing, it is a trigger to exit or take profit immediately.

Sell Entry

Open a sell trade if the following trading conditions are met:

  1. If the histograms (red & green) of the Awesome Oscillator forex indicator break and stay below the 0.00 signal level as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, therefore a sell signal will do.
  2. If the blue signal balls of the CCI_OBOS_Crossover custom indicator pops up on the activity chart as depicted on Fig. 1.1, price is said to be dragged lower, thus pointing to an increasing bears strength, therefore a sell signal is apt.

Suggested Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Suggested Exit Strategy/Take Profit for Sell Entry

Exit the sell trade if the following trading conditions are met:

  1. If while a bearish trend is ongoing, the Awesome Oscillator forex indicator displays a green histogram that is positioned above the 0.00 level, a bullish reversal is said to be in the cards, as such it is a trigger to exit or take profit forthwith.
  2. If the CCI_OBOS_Crossover custom indicator pops up a magenta signal ball during a bearish trend as seen on Fig. 1.1, it is a trigger to exit or take profit immediately.

Sell Trade Example: EURUSD, H1 Chart

Fig. 1.1

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MT5 Trading Indicators Used For This Strategy

The Awesome Oscillator indicator is a histogram-type indicator that is used in gauging market momentum and was first introduced by Bill Williams.

Traders can use this tool to confirm trends and determine probable reversal points.

The CCI_OBOS_Crossover Metatrader 5 forex indicator adopts the Overbought/Oversold (OBOS) and standard CCI indicators.

When these indicator lines crosses, the CCI OBOS Crossover indicator places tradable signal dots on the price chart.

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