Trading currencies can be a lot easier using the right forex trading strategy and I have in place a system that can do just that.
The PSAR OsMA forex trading strategy is designed to offer traders the ability to anticipate moves in price of any forex pair.
It can be used for swing trading, scalping and day trading.
Chart Setup
MetaTrader4 Indicators: Moving Average of Oscillator (20, 26, 9), Support-Resistance_Psar_Levels.ex4
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day, Week
Recommended Trading Sessions: Any
Currency Pairs: Any currency pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following indicator or chart pattern takes an upper hand:
- If the lime dots of the support/resistance Parabolic SAR indicator aligns below the candlesticks as depicted on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a signal to enter a buy position for the asset of interest is recommended.
- Watch out for the red histograms on the Moving Average of Oscillator indicator, if they are aligned above the 0.00 alert level as seen on Fig. 1.0, price is said to be pushed upwards i.e. a signal to go bullish.
Stop Loss for Buy Entry: Place stop loss 2 pips below trading support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or condition holds sway:
- If the lime dots of the support/resistance Parabolic SAR indicator realigns to form above the candlesticks, it is a signal that more buyers are shutting down their positions i.e. a trigger to exit or take profit without delay.
- If the red histograms that are found on the Moving Average of Oscillator indicator realigns to form below the 0.00 alert level, the current bullish trend is thus weaning, as such an exit or take profit is recommended.
Sell Entry Rules
Enter a sell in the market if the following indicator or chat pattern takes precedence:
- If the lime dots of the Parabolic SAR indicator aligns above the candlesticks as illustrated on Fig. 1.1, price is said to be pressured lower i.e. a signal to sell at once.
- If the red histograms on the Moving Average of Oscillator indicator develops below the 0.00 signal level, it is an indication of more bears in the market, as such a sell signal should be considered at once.
Stop Loss for Sell Entry: Place stop loss 2 pips above trading resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following rules or conditions are in place:
- If the lime dots of the support/resistance Parabolic SAR indicator re-adjusts to form below the candlesticks, it is a signal that more sellers closing their positions i.e. a trigger to exit or take profit without delay.
- If the red histograms that are found on the Moving Average of Oscillator indicator readjusts to form above the 0.00 alert level, the existing bearish trend is thus halting, as such an exit or take profit is recommended.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Parabolic SAR is a technical indicator that was created the renowned technician Welles Wilder, and is used by a lot of traders to gauge the direction of an asset’s momentum.
The indicator is depicted by series of dots that are placed either above or below an assets candlestick on its chart.
The Moving Average of Oscillator indicator is designed after the MACD oscillator, as such it gauges and plots the difference between the oscillator and its oscillator smoothing.