Forex Strategy «Diver»

Forex Trading Strategy «Diver»

• Traded currency pair: any
• Time period: any
• Used forex indicators: CCI, FX5_Divergenc, Stochastic Oscillator

Algorithm strategy Forex «Deaver»:

The basis of this strategy forex — «Diver» is the divergence of the indicator MACD, and plus it filters formed Stochastic (Stochastic Oscillator) and the 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 — Proven!

To trade on the trading strategy, we need 3 lights Forex:

1. FX5_Divergence — displays the chart MACD histogram and shows clearly the appearance of divergence.

An indicator forex standard: fastEMA — 12, slowEMA — 1926, signal — 9.

2. Stochastic Oscillator — located in a standard package of indicators forex 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.

Indicator parameters: Period — 14, Apply to — Typical Price (HLC / 3).

If you do not want to deal with the setting indicator MT4, then simply install the template (at the end of this strategy, forex), the same can download forex indicator FX5_Divergence.

Opening a trading position for the purchase of:

1. The appearance of the divergence in the indicators window for purchase — Forex Indicator FX5_Divergence draws the green arrow.

2. CCI indicator crosses -100 upwards.

3. Stochastic indicator crosses its line (signal) from the bottom up (preferably so that it was oversold, ie below 20).

Opening a trading position for sale:

1. The appearance of the divergence 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 this be in the overbought zone, ie above 80).

You can see examples in Figures 1-3:

Safety stop-loss should be put on the extremum of candles, which you opened a trading position. Profit rose by one of 2 ways:

More secure — closing the trade position occurs after crossing the CCI of the opposite level.

More than the maximum — the closure of the trading position occurs after crossing the CCI of the opposite level, while running out a stop loss (you can once again using trailing) and finally close the trading position after receiving trading signal in the opposite direction of the indicator forex FX5_Divergence.