This strategy is rather easy to use and it can be successfully applied by novice traders as well as by traders who are already at ease with Forex trading.
Its other advantages include:
As an example, let’s consider a trading option on the hour chart (H1) for the EURUSD pair.
Position Sell is opened (point А) when, following a series of bullish candlesticks, drawn by the indicator Heiken Ashi, there occurs the first bearish candlestick. At the same time, MACD should also point down.
Note: we insist on you checking the readings of the same indicators on shorter timeframes, for instance, on M5, and opening a position only when they also point to Sell.
The position is closed (point B) when the first bullish candlestick Heiken Ashi occurs, and when MACD also confirms a change in the trend.
A change in direction of candlesticks’ shadows to horizontal or bullish (black line on the fig.) can serve as an additional confirmation for the order closing.
It’s clear that a Buy position is opened and closed (points C and D) in a similar way, only when you get bullish signals of the indicators.
This strategy is particularly suitable for the intraday Forex trading.