USD/JPY 1-Hour Forex Swing Trading Strategy

The right plan is what you need to start a forex swing trading strategy that ensures the steady growth of a small/big investment.

We’ll be highlighting a swing trading strategy that is able to catch changing trends, while also allowing us ride the profits in the direction of the new trend.

The trade setups are designed to offer high probability signals, making them well-suited for individuals with full-time jobs.

These setups are designed to scan the market for much shorter market moves as compared to long-term trading strategies.

The USD/JPY 1-Hour Forex Swing Trading Strategy allows traders to get a return on their investment over a reasonably short-term trading period.

Chart Setup

MetaTrader4 Indicators: advanced_adx.ex4 (Inputs Variable Modified; ADXPeriod=52), superbollinger band mt4.ex4 (Inputs Variable Modified; BandsPeriod=24, Colors Width Modified; #0=1, #1=1, #2=1, #3=1, #4=1, #5=1)

Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour

Recommended Trading Sessions: Any

Currency Pairs: USD/JPY and any other pair

Download

Download the USD/JPY 1-Hour Forex Swing Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If price bars opens and closes above the middle line of the superbollinger band mt4 custom Metatrader 4 forex indicator (while trading along the upper outer band), the market is said to be bullish i.e. a signal to go long on the desired forex pair.
  2. If the green histograms of the advanced_adx Metatrader 4 forex indicator gets put on display within the indicator window as shown on Fig. 1.0, a buy signal is said to be in place.

Stop Loss for Buy Entry: Place stop loss 5 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the candlestick opens and closes below the middle line of the superbollinger band mt4 indicator, bullish market sentiments is said to be losing steam (see Fig. 1.0), as such an exit or take profit is recommended.
  2. If a red histogram pops up within the advanced_adx indicator window while a bullish trend is ongoing, price is said to be making a probable bearish reversal, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If price bars opens and closes below the middle line of the superbollinger band mt4 custom forex indicator (while trading along the lower outer band), the market is said to be somewhat bearish, hence it is wise to go short on the selected forex pair.
  2. If the histograms of the advanced_adx indicator begins to line up as red (refer to Fig. 1.1), a sell signal is said to be looming.

Stop Loss for Sell Entry: Place stop loss 5 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the candlestick opens and closes above the middle line of the superbollinger band mt4 indicator, a trend reversal is said to be imminent (see Fig. 1.1), as such an exit or take profit is advised.
  2. If a green histogram pops up within the advanced_adx indicator window while a bearish trend is running, price is said to be making a credible bullish reversal, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the USD/JPY 1-Hour Forex Swing Trading Strategy

About The Trading Indicators

The Advanced_ADX.ex4 custom indicator is an oscillator built on the ADX technical studies.

It uses colored histogram bars to depict buy and sell signals i.e. the green and red colored histograms respectively.

The SuperBollinger Band mt4.ex4 custom indicator is an enhanced Bollinger Bands indicator that is made up of three bands with the outer bands being plotted as standard deviations away from the middle simple moving average band.

Share Now!