USD/CHF Forex Day Trading Strategy
The USD/CHF Forex day trading strategy is based on a popular mechanical trading system that works.
It is based on a custom moving average crossover technique, along with an optimized buyers versus sellers indicator gauging structure.
The addition of a custom-built momentum indicator enables the system to define the trend characteristics more accurate.
This forex day strategy works best on the M5, M15, M30 and H1 time frames.
Just about anyone can jump into the forex market and become profitable with the help of this strategy.
MetaTrader 4 Indicators: buzzer.ex4 (Default Setting), Moving Average.ex4 (Parameters Modified; Period=36, MA method=Simple, Style=Yellow), BvS v3.ex4 (Inputs Variable Modified; BvSPeriod=40, Colors Width Modified; #0=2, #1=2)
Preferred Time Frame(s): 5-Minute, 15-Minute, 30-Minute, 1-Hour
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: USD/CHF and any other major pair
Buy Trade Example: USD/CHF (US Dollar / Swiss Franc), M15 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the yellow 36 SMA Metatrader 4 indicator line crosses below the dual colored (lime & red) buzzer indicator line in a bottom up fashion (see Fig. 1.0), price is said to be pressured higher, thus a trigger to buy the designated forex pair.
- If the lime vertical bars of the BvS v3 custom indicator get stacked up within the indicator window as shown on Fig. 1.0, bulls are said to be pushing price higher, therefore a signal to go long on the currency pair of interest.
Stop Loss for Buy Entry: Place stop loss a few pips below the yellow line.
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 36 SMA indicator line intersects the dual colored (lime & red) buzzer indicator line, it is pointing to diminishing bulls power, therefore a trigger to exit or take profit forthwith.
- If the BvS v3 custom indicator pops up a red vertical bar within the indicator window as seen on Fig. 1.0, a bearish reversal is said to be approaching, hence a signal to exit or take profit immediately.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the yellow 36 SMA forex indicator line crosses above the dual colored (lime & red) buzzer indicator line in a top downward manner as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, therefore a sell alert will suffice.
- If the red vertical bars of the BvS v3 custom indicator get stacked up within the indicator window as depicted on Fig. 1.1, bears are said to be dragging price lower, therefore a signal to go short on the currency pair of focus.
Stop Loss for Sell Entry: Place stop loss a few pips above the yellow line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is running, the 36 SMA indicator line intersects the dual colored (lime & red) buzzer indicator line (refer to Fig. 1.1), a bullish reversal is said to be on the horizon, thus a trigger to exit or take profit without delay.
- If the BvS v3 custom indicator pops up a lime vertical bar within the indicator window during the course of a bearish trend, bears are said to be leaving the market in their droves, thus a signal to exit or take profit straightaway.
Sell Trade Example: USD/CHF (US Dollar / Swiss Franc), M15 Chart
About The Forex Technical Indicators Used
The buzzer indicator is a trend following technical study that defines bullish (lime) and bearish (red) market sentiments based on a modified moving average.
The 36 SMA (Simple Moving Average) is a technical analysis indicator that smooths out currency price data by constantly creating an updated average price.
The BvS v3 custom indicator is known as the Buyers versus Sellers indicator and is used to gauge buyers versus sellers in the market.
It is a good pointer to where the future price is heading (up or down).
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