USD/CHF 1-Hour Forex Swing Trading Strategy
The USD/CHF 1-Hour Forex swing trading strategy gives you detailed market information before triggering buy and sell orders on the larger time frames.
The system applies an Alligator indicator, along with a custom built CCI indicator that is enhanced to better spot overbought and oversold market conditions.
In addition to this is the use of the PPO indicator to further determine price momentum.
The overall system yields a top-notch trade setup that delivers profitable buy and sell patterns.
As far as you’re a swing trader and likes to trade the USD/CHF and other majors, this strategy is designed to help you in your journey to attain superior swing trades.
MetaTrader 4 Indicators: Alligator.ex4 (Parameters Modified; Jaws period=18, Teeth period=13, Lips period=10), cci_.ex4 (Inputs Variable Modified; InpMaPeriod=15, InpCCIPeriod=36), PPO.ex4 (Inputs Variable Modified; FastEMA=15, SlowEMA=29, SignalEMA=12)
Preferred Time Frame(s): 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: USD/CHF + other major pairs
Buy Trade Example: USD/CHF (US Dollar / Swiss Franc), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue Alligator Metatrader 4 indicator line crosses below the lime and red lines in a bottom up manner as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, therefore a trigger to go long on the stipulated currency pair.
- If the dark gray line and dodger blue histograms of the cci_ custom indicator break and runs above the 0.00 horizontal level as depicted on Fig. 1.0, bulls are said to be driving price higher i.e. a trigger to buy the designated forex pair.
- If the sky blue and red dotted line of the PPO indictor break above the zero reference level as exemplified on Fig. 1.0, the market is said to be supporting higher prices, thus a signal to buy the currency pair of interest.
Stop Loss for Buy Entry: Place stop loss below the previous swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a bullish trend is ongoing, the blue Alligator indicator line intersects the lime line, it is pointing to diminishing bulls power, therefore an exit or take profit stance is recommended.
- If the dark gray line of the cci_ custom indicator dips below the 0.00 reference level (refer to Fig. 1.0), bulls are said to be leaving the market increasingly, thus a trigger to exit or take profit at once.
- If the sky blue line of the PPO indicator dips below the zero horizontal level while a bullish trend is ongoing, bulls are said to be leaving the market increasingly, as such an exit or take profit stance is advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue Alligator indicator line crosses above the lime and red lines in a top downward manner as shown on Fig. 1.1, the overall market sentiment is said to be bearish, thus a signal to sell the desired forex pair.
- If the dark gray line and deep pink histograms of the cci_ custom indicator break and hover below the 0.00 horizontal level as seen on Fig. 1.1, bears are said to be pushing price lower i.e. a trigger to sell the currency pair of interest.
- If the sky blue and red dotted line of the PPO indicator break below the zero reference level as demonstrated on Fig. 1.1, price is said to be taken lower, hence a trigger to go short on the fx pair of focus.
Stop Loss for Sell Entry: Place stop loss above the previous swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the blue Alligator indicator line intersects the lime line during the course of a bearish trend, bear power is said to be halting, therefore an exit or take profit stance is advised.
- If the dark gray line of the cci_ custom indicator surges above the 0.00 horizontal level while a bearish trend is running, a bullish reversal is said to be imminent, thus a trigger to exit or take profit forthwith.
- If the sky blue line of the PPO indicator breaks above the zero horizontal level during a bearish trend (see Fig. 1.1), more and more sellers are said to be closing their positions, thus a signal to exit or take profit immediately.
Sell Trade Example: USD/CHF (US Dollar / Swiss Franc), H1 Chart
About The Forex Technical Indicators Used
The Alligator is a technical indicator by Bill Williams, introduced in 1995.
The indicator is comprised of three lines that are overlaid on the activity chart.
The lines represent the jaw, the teeth and the lips of the Alligator.
Forex traders tend to use this indicator to gauge trend and its likely direction.
The cci_ is a modified Commodity Channel Index indicator that is deployed to gauge the difference between a currency pair’s price change and its mean price change.
The Percentage Price Oscillator (PPO) is a momentum indicator that gauges the difference between two moving averages as a percentage of the bigger moving average.
The PPO has its standard setting that are similar to those of the MACD: 12, 26, and 9.
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