Relatively simple forex strategy, employing Heikin Ashi forex indicator to find great position entries and MACD (Moving average convergence divergence) to do so in direction of strong trend. This strategy can become extremely profitable, as we look to ride a trend for as long as possible and to add to our winning positions. Therefore, our losing trades will remain limited and our profitable trades will compound.
This forex strategy uses two forex indicators
MACD (20,60,9)
Heikin Ashi – standard (default MT4 settings)
How to trade this Heikin ashi agressive forex strategy.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
BUY
MACD trends above 0 (central line), uptrend is in progress.
Heikin Ashi swing up, consecutive white candles creating new high. Once the swing high has finished, we can expect correction (swing low) marked by red Heikin Ashi candles.
Our signal is at the end of the correction – first white candle drawn and closed after correction.
We enter the trade long(buy), placing a stop loss at the bottom of previous swing up (marked by white candles).
Target profit: We wait for MACD to cross below 0 line, to close all opened buy positions.
Rules:
New buy trades can only be placed if price has reached new high within the trend ! We do not place more orders at same price level.
After we open new order we place stop losses of all our previous buy orders at break even point of our last position that is already in profit. In other words: We take all our stop losses and place them at entry of our last profitable position.
SELL
MACD trends below 0 (central line), downtrend is in progress.
Heikin Ashi swing down, consecutive red candles creating new low. Once the swing low has finished, we can expect correction (swing high) marked by white Heikin Ashi candles.
Our signal is at the end of the correction – first red candle drawn and closed after correction.
We enter the trade short(sell), placing a stop loss at the top of previous swing down (marked by red candles).
Target profit: We wait for MACD to cross above 0 line, to close all opened sell positions.
Rules:
New sell trades can only be placed if price has reached new low within the trend ! We do not place more orders at same price level.
After we open new order we place stop losses of all our previous sell orders at break even point of our last position that is already in profit. In other words: We take all our stop losses and place them at entry of our last profitable position.
As you can see, once we enter the trend we can open many risk free trades increasing our position size 2 – 10 times without any additional risk. All you need to trade it, is patience and discipline !
