This trading strategy gives a chance to gain profit when you open a position at the price reversal. The reversal is determined with the help of the indicators Ichimoku Kinko Hyo and Awesome Oscillator. This strategy works for all currency pairs. Choose H1 or a longer period as a timeframe.
After adjusting a chart and adding the required indicators for opening a trading positions, follow the instructions below:
A signal for opening long positions will be the situation on the chart, which meets the following conditions:
- the candlestick has closed above the line Senkou Span B of the indicator Ichimoku Kinko Hyo;
- histogram of Awesome oscillator is of the green color and is located above the zero level.
Buy transaction shall be conducted at the opening of the next candlestick after the fulfillment of the following conditions:
Stop Loss is set 5 points lower than the nearest support level (swing low).
Take Profit is set at the distance, which is equal to the distance from the current price to Stop Loss, or at the level of the nearest resistance level (swing low).
Fig. 1 The marked candlestick on the chart with the period H1 meets all requirements for opening long positions.
A signal for opening short positions is the situation on the chart, which meets the following conditions:
- the candlestick has closed below the line Senkou Span B of the indicator Ichimoku Kinko Hyo;
- histogram of Awesome oscillator is of the red color and is located below the zero level.
Sell transaction shall be conducted at the opening of the next candlestick after the fulfillment of the following conditions:
Stop Loss is set 5 points higher than the nearest resistance level (swing high).
Take Profit is set at the distance, which is equal to the distance from the current price to Stop Loss, or at the level of the nearest support level (swing low).
Fig. 2 The marked candlestick on the chart with the period H1 meets all requirements for opening short positions.