This is a very simple forex strategy for day traders. The strategy itself consists of only one advanced trading indicator.
The indicator is composed of 2 bands and blue buy and red sell arrows. You can try this strategy on the 1 min, 5 min, 15 min and 30 min time frame.
Let’s take a look below how it works:
Preferred time frame(s): 1 min and up
Trading sessions: London and New York
Preferred Currency pairs: any
Example: AUD/NZD M15 Chart
As shown in the AUDNZD trading chart above, the bands are pointing down, so we are looking for sell signals (see trading rules).
The indicator painted 2 qualified sell arrows near the top of the upper red band.
Both sell trades were closed at the lower blue band for +38 pips and +30 pips profit.
Please note that we never trade any of the blue arrows when the bands go downwards.
Qualified Buy Trade:
- Bands pointing up
- Blue buy arrow appears near the lower band
==> Open buy trade and place protective stop-loss below the most recent swing low point (support).
Price Objective: Close the buy trade when the price touches the upper band.
Qualified Sell Trade:
- Bands pointing down
- Red sell arrow appears near the upper band
==> Open sell trade and place protective stop-loss above the most recent swing high point (resistance).
Price Objective: Close the sell trade when the price touches the lower band.