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Trading Strategy

This is ideally a short-term strategy that employs three indicators:

This is ideally a short-term strategy that employs three indicators:

  1. Larger-Period Moving Average (50)
  2. Smaller-Period Moving Average (20)
  3. Awesome Oscillator
    1. On the chart of your selected instrument, click on ‘Studies” and select “Moving Average” on the drop-down menu; select 50 as the period for the first moving average and then repeat the same process and select 20 as the period for the second moving average.
    2. Click on “studies” and select “Awesome Oscillator” on the drop-down menu.

BUY SIGNAL

  • The candlesticks prints are above the two moving averages
  • The two moving averages will cross over at a swing low
  • Volume bars (both green and red) will print above the zero axis of the awesome oscillator

SELL SIGNAL

  • The candlesticks prints are below the two moving averages
  • The two moving averages will cross over at a swing high
  • Volume bars (both green and red) will print below the zero axis of the awesome oscillator

N.B: This a momentum-based strategy and would work best with relatively shorter-term time frames: the 4-Hour (H4) and the Hourly (H1) are viable options.

Traders are advised to always use a stop-loss!!

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