Awesome and 200 EMA ~ forex trading hours london
Awesome and 200 EMA daily trading system is an trend momentum system.
Time Frame: daily.
Currency pairs: any.
Open Daily Chart (timeframe D1). Set up the Awesome Oscillator (AO) with
default value.
· Set up the Stochastic with setting 5,3,3 (on top of the AO-in the same
window)
· Set up the 200 SMA
· Enter long (buy) order when:
o The current price is above the 200 SMA AND
o The AO has changed to green AND
o The Stochastic ‘s main line goes up above the 50 line
· Enter short order when:
o The current price is below the 200 SMA AND
o The AO has changed to red AND
o The Stochastic ‘s main line goes down over the 50 line
· When you already can spot the entry signal, you can enter 2 trades (identical).
Remember set the position size so that in total, you should not risk more than
1-2% of your account
Stops
For the 2 trades you entered, set the S/L to 100 pips (to both 2 trades).
Take Profit
For Trade 1 (lot 1): Set a take profit at +100 pips.
For Trade 2 (lot 2): Allow this trade to run until the Awesome Oscillator is showing a
reverse signal. (change from green to red or vice versa)
Money Management:
For both Trades, when you reach +50 pips, set the stop loss for both trades to 0.
(Break even)
Buy order
The red line in the above figure marked the entry for a long order. As you can see,
the current price was above the 200SMA line (orange line). Meanwhile, the AO
turned green and the Stochastic (you just need to care about the main line of the
Stochastic-which is the blue line in the above figure) went up above 50. I entered this
trade with 2 lots. |
| Awesome and 200 EMA daily trading system |
The red vertical line in the above figure marked the entry for a short order. As you
can see, the current price was below the 200SMA line (orange line). Meanwhile, the
AO turned red and the Stochastic went down below 50. I also entered this trade with
2 lots.
 |
Awesome and 200 EMA daily trading system |
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