Forex Trading Strategy Deaver
traded currency pair: any
Time period: any
Used forex indicators: CCI, FX5_Divergenc, Stochastic Oscillator
algorithm strategy Forex "Diver":
The basis of the forex strategy - " Deaver " is divergence of the indicator MACD , plus a filter formed by the stochastic oscillator ( Stochastic Oscillator ) and an indicator CCI . Using the divergence is more reasonable for an interim period not less than H1 - hour (but it is better to use a 4-hour and daily intervals). Any recommendations on the selection of trading tools no - but the good results of the trading system shows the currency pair EURUSD and GBPUSD - checked up!
to trade on the trading strategy we will need three forex indicator:
1. FX5_Divergence - displays the chart and the MACD histogram illustrates the occurrence of divergence.
An indicator forex standard: fastEMA - 12, slowEMA - 26, signal - 9.
2. Stochastic Oscillator - located in the standard package of forex indicators trading platform Metatrader 4 . An indicator forex: Period% K - 8, Range% D - 3 Slowing - 3 Price - Low / High, Type MA - Simple.
3. Indicator Commodity Channel Index (CCI) - also a standard tool of the terminal MT4.
An indicator: Period - 14, apply to - Typical Price (HLC / 3).
If you do not want to deal with the setting indicator MT4, then simply set the template (at the end of the forex strategy), there can also download forex indicator FX5_Divergence.
Opening a trading position to buy:
1. The appearance of divergences in the indicators window for purchase - Forex Indicator FX5_Divergence draws the green arrow.
2. CCI indicator crosses the line of -100 from the bottom up.
3. Stochastic indicator crosses its line (signal) from the bottom up (it is desirable that it was oversold, that is, below 20).
Opening a trading position for sale:
1. The appearance of divergences in the indicators window for sale - Forex Indicator FX5_Divergence draws a red arrow.
2. CCI indicator crosses the line - 100 from the top down.
3. Stochastic indicator crosses its line (signal) from the top down (it is desirable that it was overbought, ie above 80).
examples you can see in Figures 1-3:
safety stop-loss should put the candles at the peak, where you open a trading position. Profit rose by one of 2 ways:
- more secure - the closure of the trading position is after the intersection opposite the CCI level. A maximum
- - closing the trade position occurs after crossing the CCI opposite level, with a stop-loss is running out (you can once again by trailing ) and finally close a trading position after receiving the trading signal in the opposite direction of the indicator forex FX5_Divergence.