H1 Forex Trading Strategy

The H1 (1-Hour) Forex trading strategy is a neatly designed currency trading strategy that uses three key indicators for spotting profitable changes in market trends.

The strategy analyzes medium-term price action and works the best for both swing traders and position traders.

This strategy offers traders an indispensable market view from which they can stay on the right side of the market.

Using this strategy will avail the trader the opportunity of knowing whether there’s more buying or selling pressures.

More buying pressure will result in a buy trade opportunity while more selling pressure in a sell trade opportunity.

Chart Setup

MetaTrader4 Indicators: forex-mt4-trend-indicator.ex4 (Inputs Variable Modified; MaPeriod=36), EMAAngleZero.ex4 (Default Setting), DeMarker.ex4 (Parameters Modified; Period=29)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example: USD/CAD (US Dollar / Canadian Dollar), 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 blue upward pointing arrow plus candle-like bodies of the forex-mt4-trend-indicator custom indicator align somewhat below the price bars as seen on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the designated currency pair.
  • If the lime green histograms of the EMAAngleZero custom indicator break above the 0.00 horizontal level as shown on Fig. 1.0, the general market sentiment is said to be bullish, thus a buy alert will suffice.
  • If the light sea green line of the DeMarker Metatrader 4 forex indicator breaksabove the 0.5 horizontal level (see Fig. 1.0), bulls are said to be driving price higher, and therefore a buy alert is advised.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If the forex-mt4-trend-indicator displays a red downward pointing arrow while a bullish trend is running (refer to Fig. 1.0), bulls power is said to be weaning, as such an exit or take profit will suffice.
  • If the EMAAngleZero custom indicator displays a fire brick or yellow histogram below the zero signal level, bulls are said to be closing their positions increasingly, hence an exit or take profit stance is recommended.
  • If the light sea green line of the DeMarker forex indicator readjust to break below the 0.5 level, it is signaling a likely end to the bullish momentum, therefore an exit or take profit stance is apt.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red downward pointing arrow plus candle-like bodies of the forex-mt4-trend-indicator custom indicator align fairly above the price bars as illustrated on Fig. 1.1, price is said to be dragged lower i.e. a trigger to sell the designated currency pair.
  • If the yellow histograms of the EMAAngleZero indicator hover below the 0.00 horizontal level as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, thus a trigger to go short on the currency pair of interest.
  • If the light sea green line of the DeMarker indicator breaks below the 0.5 horizontal level (check Fig. 1.1), bears are said to be driving price lower, and therefore a signal to sell at once.

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:

  • If the forex-mt4-trend-indicator displays a blue upward pointing arrow during a bearish trend as depicted on Fig. 1.1, bears power is said to be halting, as such an exit or take profit stance will meet our requirements.
  • If the EMAAngleZero custom indicator displays a fire brick or lime green histogram above the zero signal level, bears are said to be closing their positions more and more, hence an exit or take profit stance is suggested.
  • If the light sea green line of the DeMarker forex indicator readjust to break above the 0.5 level, it is pointing to diminishing bear strength, therefore an exit or take profit stance is appropriate.

Sell Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart

Fig. 1.1

Free Download

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About The Forex Technical Indicators Used

The forex-mt4-trend-indicator is a trend indicator just as conveyed within its name, with its red arrows signifying a sell, while its blue arrows connotes a buy signal.

The EMAAngleZero custom indicator is a filter that helps keeps traders away from sideways markets in the absence of any trend.

It deploys the EMA 34 along with an angle threshold of 0.2 to aid spot sideways market.

The DeMarker indicator is an oscillator designed by Tom Demark that also finds use when traders are trying to determine potential overbought and oversold regions in the market.

Easy Installation

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

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