Strategy - 4

Forex My Passion - Ashi Strategy

This is my own system. I am proud to say that it is mine. I trade WITH the trend.

I aim to get at least 35 pips if I get into the trade. I am testing this from 2 weeks.

It is actually getting me into the trade earlier than most others systems.

The currency forex pairs this system works with are (I tested only these pairs);

* AUD/USD

* EUR/USD

* GBP/USD

* USD/CHF

Time Frame: H1 & Daily

Indicators:

Envelopes (14)

Heiken Ashi Smoothed_v2 (2, 6, 3, 2)

Awesome Oscillator – AO (default settings with level 0.0)

Accelerated Directional Movement Index (ADX) (settings –period 14, Typical Price HCL/3) Level 22 & 44

MACD (12, 26, 9) (level 0.0)

Explanation

I use candle stick & line charts.

1.       The line chart if the price is in between envelope no trade. Price must crosses above / below envelop. In candle chart wait for the candle to close above / below envelop.

2.       Heiken Ashi gives the clear direction of trade (red for down trend and blue for uptrend)

3.       Trade only if ADX is above 22

4.       AO & MACD must appear above for uptrend & below for downtrend.

5.       Buy when the candle closes above envelop/ Sell when candle closes below envelop.

6.       SL mist be 5 pips above / below the swing high or swing low

Scalping System:

1.       The line chart if the price is in between envelope no trade. Price must crosses above / below envelop. In candle chart wait for the candle to close above / below envelop.

2.       Heiken Ashi gives the clear direction of trade (red for down trend and blue for uptrend)

3.       Trade only if ADX is above 22

4.       AO & MACD must appear above for uptrend & below for downtrend.

5.       Buy when the candle closes above envelop/ Sell when candle closes below envelop.

6.       SL mist be 5 pips above / below the swing high or swing low
7.    To scalp (all above points should meet) as long as Heiken Ashi is blue and the price is above envelop place buy trades for 5 to 20 pips and if Heiken Ashi is red place sell trades. if price starts moving in opposite direction and is in between envelop stop trading / scalping in that direction and wait for the clear entry again.