Daily Charts Strategy That Pulls 100-500+ Pips Per Trade
This is a daily timeframe strategy that can make hundreds of pips per trade for you without you having to spend hours staring at your computer monitor. Wake up in the morning, scan the charts on the daily timeframe, setup your trade and that's it. After that you are free to do whatever you want to do.
This is a simple daily charts trading strategy that uses only two indicators. One is the Bill William's Acceleration/Deceleration Oscillator (AC). The second is the Stochastic.
Bill Williams is famous for his application of Chaos Theory to Trading plus his concept of fractals. Bill Williams says that before price behavior changes, momentum changes and before momentum changes, there is acceleration and deceleration. Knowing acceleration/deceleration can give you an advanced warning. This oscillator does exactly that.
Stochastic is an important oscillator that has two lines the %K and the %D. %K line is the main line and is colored dark while the %K line is shown dotted on the charts.
Open any daily chart on your MT4 Platform. Attach the AC Oscillator on the chart. Choose green color as the value up color and red color as the value down color. The choice of colors is not important. You can choose, your colors as long as you remember the value up color and the value down color. Choose the 5,3 and 3 settings for the Stochastic and attach it to the AC Oscillator. So, you will find both these oscillators superimposed on each other.
These are the rules for entering into a long trade. The green AC is above zero and the Stochastic is above zero. When red AC is below zero and Stochastic is below zero, exit the long trade. These are the rules for entering and exiting the short trade. Red AC should be below zero and the Stochastic is below zero. When green AC is above zero and the Stochastic is above zero, exit the short trade. Enter a stop loss of 100 pips below the long entry and 100 pips above the short entry.
First practice this daily charts strategy on your demo account and see how well it works. After mastering it on your demo account, only then trade live with it.
Article Source: FxTradingStock.com
About the Author
Mr. Ahmad Hassam has done Masters from Harvard University. Try these Forex Signals by two top gun traders in a friendly competition. Download this award winning Forex Trading System that made 1,306.50% in one month FREE and watch the banned system video.
by: Ahmad Hassam
Total views: 16
Word Count: 383
Date: Thu, 27 Jan 2011
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