by TFK6: Classical swing forex strategy, that brings amazing risk reward ratio to the table. Cheap entry offers great opportunity to enter the trend just after its birth. Basically it allows you to stay in trade for days or Weeks in suitable market conditions.
By risking couple of dollars you can get couple of hundred of dollars and that is really nice. This forex strategy is based in CCI indicator which comes as standard with all the MT4 platforms. There are few extra steps to this forex strategy, that are ensuring phenomenal RRR and ensuring that you get better price with each entry.
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Used forex indicators:
This forex strategy uses only CCI (commodity channel index) with period 55. You will be entering the trade based on indicator and candle signal. Exit is also indicated by CCI. The only thing that is not foolproof in this forex strategy is the fact than it requires a trader to stick to its rules and remain patient while in trade. Apply additional zero line in the indicators window.
Forex strategy rules
SELL
CCI indicator falls below -100 value into the oversold sector. This may signalize (and more often than not does) that downtrend begins. We will take our chances and enter the trade short.
However, first we wait for correction. The correction will be quite minor. Often times taking form of single bullish candle. Regardless of the number of candles, we enter the short trade once the first bearish candle closes below the low of previous candle. Stop loss is than placed 1 pip above the high of signal formation.
Take profit: We wait for CCI to cross 0 line upwards to liquidate our position in profit.
BUY
CCI indicator rises above 100 value into the overbought sector. This may signalize (and more often than not does) that uptrend begins. We will take our chances and enter the trade long.
However, first we wait for correction. The correction will be quite minor. Often times taking form of single bearish candle. Regardless of the number of candles, we enter the long trade once the first bullish candle closes above the high of previous candle. Stop loss is than placed 1 pip below the low of signal formation.
Take profit: We wait for CCI to cross 0 line downwards to liquidate our position in profit.
Notes: Swing strategy allows you to ride the trend and reverse your position promptly once the trend reversal becomes prominent. Costs for entry are overcompensated by taking a long ride on trend wave. All young need are just a couple of good trades once in while to do perfectly well.
