Forex Strategy OZFX Squeeze is designed for intra-day trading on forex, and more precisely on the interval H4;
On the schedule for the chosen currency pair must be placed the following indicators for Forex:
- Awesome (AO) — Bill Williams oscillator with default settings
- Accelerator (FC) — oscillator Bill Williams as the default settings.
- Indicator Stochastic — it must be imposed on the indicator AC 5,3,4 with the settings (if you do not know how to do it, then can just download the end of this forex strategy template for MT4).
Description forex strategy OZFX Squeeze:
1) The 4-hour pricing schedule allows the trader to take a big enough movement in the market — from 100 to 1,000 pips. But it is possible to trade and to a smaller time periods, but for a 30-minute charts, for example, the size of the trend will be Ryan 30 — 50 points.
2) Oscillator SA allows us to determine the status of the current trend in the market. As soon as oscillators AO and AC are painted the same color, it indicates a strong trend on the market. Oscillator AO responds to changes in the trend is slightly slower than the oscillator AC.
3) Oscillator AC indicate a change in trend garazdo faster than the oscillator AO and thus gives a good trading signals for market entry and exit. Oscillator AC — perhaps the only indicator forex, which allows the trader to open a forex trading positions as close as possible to the top or bottom of the trend movement.
4) Stochastic indicate oversold and overbought market. And it is quite important to determine the points of entry and exit.
Entering the market for forex strategy OZFX Squeeze — aggressive (more risky).
1) We get a strong signal at the entrance to the market as soon as the Stochastic% K and% D intersect the upward or downward level 80 or level 20, and two oscillators Bill Williams, AC and AO are colored red or green at the same time.
2) As soon as the Stochastic crosses up or down level 80 or level 20. We wait until the indicator light will turn red AC or green. Open a trading position at the opening of the same price bar.
Entering the market for forex strategy OZFX Squeeze — Conservative.
As soon as the Stochastic crosses up or down level 80 or level 20, wait until the indicator crosses the zero line Stochastic oscillator AU.
Do not open a trading position: If the Stochastic crosses up or down level 80 or level 20, but the oscillator does not change AU vsoy color at the next price candle.
Examples of transactions (click on picture to enlarge — opens in new window):
Risk management and capital management, when trading forex strategy OZFX Squeeze:
1) Open a trading position with 3 lots with a safety stop-loss at 50 points (if you have 3 lots of a lot — you can open a position respectively 0.3 Lot or Lot 0.03).
2) Close the profit on the 1 st open lot at 50 pips from entry into the market, thus shifting the safety stop-loss order to breakeven.
3) Close the gain on 2 nd open lot at a distance of 100 points from entering the market.
4) The last part of trading positions are closed as soon as was received by the opposite trade entry signal to the market.
You should not leave the trade position, if not crossed Stochastic its level of 80 or 20. We wait until an intersection with the zero line oscillator AU, and only then out of the market. It is important for forex strategy, if you want to catch the big trend movements in the market — from 100 to 900 points.
Remember: Once the bars of the oscillator crosses down the AU level 20 or up level of 80, while crossing the Stochastic indicator — this is a very strong signal!
