Forex Strategy OzFx in order to profit from 100 to 800 points working on the daily charts (D1), this interval was chosen because trade on long-term timeframes actually very easier, because rules of technical analysis on them works better and more often, and besides, you will not have the desire to sit around the monitor all day.
The strategy forex OzFx:
Open daily chart (D1) for a currency pair EURJPY (although this forex strategy works on other currency pairs, and if you can try to apply it to other time slots)
Place on the chart indicator Bill Willam’s Accelerator Oscillator (AC)
Imposed on the AC LED Indicator Stochastics (Stochastic Oscillator) with 5,3,3 settings (if you do not know how to do it — you can download the template for Metatrader 4 at the end of the strategy)
All forex indicators are present in standard trading platform MT4Conclusion of the transaction on forex strategy OzFx:
- For Sale: Red AC crossed down the zero line, Stochastic is below 0.
- Bid: AU Green crossed upwards the zero line, Stochastic is above 0.
- Exit the trade transaction is carried out at the opposite signal, either by following the rules of money management:
Assume that you are trading 5 lots (with a smaller deposit can choose 0.5, respectively, the lot or lots such as 0.05, or same trade 5 lots on cent accounts), a safety stop-loss set at 100 points of entry into the market.
Next, fix a profit:
1) on Lot 1 a distance of 50 items from the entrance and move the stop loss to breakeven (ie zero).
2), Lot 2 at 100 points.
3) on Lot 3 at 150 points.
4), Lot 4 a distance of 200 points.
And then hold a trading position, Lot 5 to as long as you get the opposite signal at the entrance to the market.
In this strategy, forex risk reward ratio of 1:1, (but may be extended in the direction of profit depending on how you close the 5 th lot). But since we trade on the D1 chart, where the entrances to the market is much more reliable than the intraday charts, the ratio of risk to profit still growing in our direction.
Forex Trading Strategy OzFx very simple and it’s another big plus is that it works fine on most currency pairs and also in the CFD on U.S. stocks.
