The indicator Accelerator Oscillator demonstrates best forecasting performance on the basis of the news bulletins. This quality of the indicator will help us to make profit using the strategy described below. The main idea of the strategy of “three indicators” is to grasp changes in trend and use this moment to earn money. Three simple indicators will help us to do it: the first one, which have already mentioned, is Accelerator Oscillator, the other two are Awesome Oscillator and Parabolic SAR. The best result can be achieved on the chart with the timeframe H1. The strategy is recommended for trading major currency pairs.
Used indicators:
- Parabolic SAP (hereinafter PSAR);
- Awesome Oscillator (hereinafter AO);
- Accelerator Oscillator (hereinafter AC).
Conditions for concluding buy transactions (Fig. 1):
- PSAR is under the price chart;
- Histogram AO changes its color from red to green;
- Histogram AC changes its color from red to green.
All three conditions shall take place on the same candlestick, which is further regarded as a signal one; the transaction to buy should be concluded at the opening of the next candlestick.
Fig. 1
Stop Loss:
Set Stop Loss at the Low level of the signal candlestick.
Conditions for closing transactions:
- Set Take Profit at the same distance as Stop Loss.
- As an alternative, we can close transactions when both AO and AC change their color to red.
Conditions for concluding sell transactions (Fig. 2):
- PSAR is above the price chart;
- Histogram AO changes its color from green to red;
- Histogram AC changes its color from green to red.
All three conditions shall take place on the same candlestick, which is further regarded as a signal one; the transaction to sell should be concluded at the opening of the next candlestick.
Fig.2
Stop Loss:
Set Stop Loss at the High level of the signal candlestick.
Conditions for closing transactions:
- Set Take Profit at the same distance as Stop Loss.
- As an alternative, we can close transactions when both AO and AC change their color to green.