Simple Forex Oscillator Strategy That Works
One way currency traders can simplify and improve their trading is via a trading plan that combines technical indicators and a few simple setup rules on how those indicators should be deployed.
In sustaining the idea that simple is often the best, the Simple Forex Oscillator strategy points us in the direction of two unique technical indicators whose setup rules are overly simplified.
Monitoring open buy & sell trades requires less time with this strategy, making it suitable for newbies and traders who are looking to devote small amount of time to their trading.
Feel free to use this strategy on any currency pair and timeframe of your preference.
Works for scalping, day trading and swing trading currency pairs.
MetaTrader4 Indicators: advanced-get-oscillator.ex4 (default Setting), taotra.ex4 [Inputs Variable Modified; Starting period=6, Period step (if add used)]
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the steel blue histograms of the advanced-get-oscillator Metatrader 4 forex indicator gets aligned above the 0.00 signal level as depicted on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to go long on the currency pair of interest.
- If the lime green, gold and pale violet red lines of the taotra custom indicator stay slightly below the candlesticks as shown on Fig. 1.0, price is said to be driven higher, therefore a trigger to go long on the designated forex pair is appropriate.
Stop Loss for Buy Entry: Place stop loss 2-3 pips below the most recent swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the steel blue histograms of the advanced-get-oscillator indicator realigns to stay below the zero center level as exemplified on Fig. 1.0 during a buy signal, it is indicative of a bearish reversal, therefore an exit or take profit is recommended.
- If the pale violet red lines of the taotra indicator crosses the lime green and gold lines while a bullish trend is ongoing, bulls power is said to be weaning, hence an exit or take profit will suffice.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the steel blue histograms of the advanced-get-oscillator indicator stay below the 0.00 signal level as shown on Fig. 1.1, more bears are said to be taking up orders, therefore it is advised to initiate sell positions without delay.
- If the pale violet red, gold & lime green lines of the taotra custom indicator stay fairly above the candlesticks as seen on Fig. 1.1, the general sentiment is said to be bearish, as such a sell alert is highly recommended.
Stop Loss for Sell Entry: Place stop loss 2-3 pips above the most recent swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If the steel blue histograms of the advanced-get-oscillator indicator readjust to pop up above the zero center level as illustrated on Fig. 1.1, price is said to be making a likely U-turn, therefore an exit or take profit will do.
- If the pale violet red lines of the taotra indicator crosses the gold and lime green lines during a bearish signal, bears power is said to be halting, hence an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The advanced-get-oscillator.ex4 is an indicator that oscillates around the zero level.
Its slate blue histograms gets positioned either above (bullish) or below (bearish) the 0.00 signal level in a bid to gauge current trends.
The taotra.ex4 custom indicator is a moving average type indicator that is made up of line clusters, with a starting period of 6.