by DeltaSR: This forex strategy is relies on two DeM oscillators. One of them is used for trend identification and the second marks the entry signal. Strategy works as scalper in 5 min chart in any of the major currency pairs. Signal accuracy is improved by looking into other factor not just solely DeM.
Used forex indicators
DeM (Demarker) period 50. Additional line 0,5 is used to separate the uptrend from downtrend. DeM trending below – downtrend. DeM trading above 0,5 line uptrend. Simple and pretty standard.
DeM 3. This will be our signal. We need to look closely into the chart once we notice that DeM risen above 0,7 line or fallen below 0,3 line.
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Forex strategy rules
DeM 50 falls below 0,5 line. Signalizing downward momentum – downtrend in our timeframe. We will therefore enter short trades only.
Signal: DeM 3 rising above 0,7 line. We do not enter the trade immediately. Instead, we wait for bearish candle to close below the low of previous candle. Also, we wait for DeM 3 to fall back below 0,7 line into the neutral zone.
Once this happens, we place sell order. Stop loss is positioned above the high of our entry signal.
Take profit: Equals the amount of pips we have risked for position. While we enter second, and all following trend in current momentum (DeM 50 trends below 0,5 line without closing above it), make sure that the new low was reached in current downtrend before entering another trade.
DeM 50 rises above 0,5 line. Signalizing upward momentum – uptrend in our timeframe. We will therefore enter long trades only.
Signal: DeM 3 falling below 0,3 line. We do not enter the trade immediately. Instead, we wait for bullish candle to close above the high of previous candle. Also, we wait for DeM 3 to rise back above 0,3 line into the neutral zone.
Once this happens, we place buy order. Stop loss is positioned below the low of our entry signal.
Take profit: Equals the amount of pips we have risked for position. While we enter second, and all following positions in current momentum (DeM 50 trends above 0,5 line without closing below it), make sure that the new high was reached in current uptrend before entering another trade.