This swing trading strategy provides signals based on a combination of 2 trend filters and 2 trend following indicators.
The system can be used on any currency pair and is effective on the higher time frame’s, starting from the hourly charts and up.
For beginners, I highly recommend starting with a few currency pairs and demo trade first.
Chart Setup
Indicators: 13 EMA, 55 EMA, octopus_1.ex4, octopus_2.ex4
Preferred time frame(s): 1 hour, 4 hour, day
Trading sessions: 24/7
Best currency pairs: any
Download
Download The Octopus Forex Swing Trading Strategy.
Example: AUD/USD H1 Chart
Trading Rules
Buy:
- Both Octopus indicators are in the green zone (bullish market)
- Green 13 EMA crosses the red 55 EMA from the bottom upwards
==> Open buy order when all trading conditions mentioned above are true.
It’s recommended to place a stop-loss a few pips below the most recent support level.
Price Objective: Exit the buy trade at risk-to-reward 1:2 (i.e. risking 100 pips to make 200). Alternatively, ride the uptrend until the octopus 2 indicator changes its color from green to red.
Sell:
- Both Octopus indicators are in the red zone (bearish market)
- Green 13 EMA crosses the red 55 EMA from the top downwards
==> Open sell order when all trading conditions mentioned above are true.
It’s recommended to place a stop-loss a few pips above the most recent resistance point.
Free Download
Download The Octopus Forex Swing Trading Strategy.
Price Objective: Exit the short trade at risk-to-reward 1:2 (i.e. risking 120 pips to make 240). Alternatively, ride the downtrend until the octopus 2 indicator changes its color from red to green.