December 14, 2016

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:

  • use of only two indicators, both are integrated in MetaTrader terminals МТ4 and МТ5.
  • ­possibility to use it on various currency pairs and timeframes.

As an example, let’s consider a trading option on the hour chart (H1) for the EURUSD pair.

Indicators:

  1. Heiken Ashi (at the top of the fig.), the parameters do not change,
  2. MACD (at the bottom of the fig.), settings: Fast EMA 15, Slow EMA 26, MACD SMA 5.

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.


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