Awesome Oscillator And EMA for Forex Strategy
This strategy is composed of a moving average and the Awesome oscillator. It’s designed to buy dips in uptrends and sell rallies in downtrends while limiting your risk to the bare minimum. We aim for positive risk-to-reward ratio’s.
Indicators: 200 exponential moving average, Awesome Oscillator with default settings
Preferred time frame(s): 1 Hour and above
Trading sessions: Any
Preferred Currency pairs: Any
EUR/USD Daily Chart
The EUR/USD daily chart above illustrates how the strategy works. We had two buy signals at 1.3182 and 1.3357. Both closed for profits. Click the chart to enlarge.
- Exchange rate above the 200 period exponential moving average (established buy trend)
- Awesome oscillator back above 0.0 from below and green bar (buy dip)
Initiate a buy order at the open of the next bar. Place stop-loss 5 pips below the previous swing low or according to your own preferred settings.
Price objective: Close first half at risk-to reward 1:1 and the remaining half at 1:2.
- Exchange rate below the 200 period exponential moving average (established sell trend)
- Awesome oscillator back below 0.0 from above and red bar (sell rally)
Initiate a sell order at the open of the next bar. Place stop-loss 5 pips above the previous swing high or according to your own preferred settings.