Forex Strategy “Diver”
At the base of this trading system lies the divergence of indicator MACD + filters in which quality acts Stochastic oscillator and indicator CCI.
Use of divergence in the market reasonable on time frames not below – H1 ( it is recommended to use 4-hour and day trading schedules ). There are no any special recommendations for choice present trading currency pair – the system was tested only with pair EURUSD.
To make this trading system we need 3 Forex indicators:
1. Indicator FX5_Divergence – displays histogram MACD and also visually displays appearance of divergence; parameters of the indicator the standard: fastEMA – 12, slowEMA – 26, signal – 9.
2. Indicator Stochastic Oscillator – is in a standard packet of indicators of point-of-sale terminal MetaTrader; parameters: the Period %K – 8, the Period %D – 3, Delay – 3, the Prices – Low/High, Method MA – Simple.
3. Indicator Commodity Channel Index ( CCI ) – is a standard tool of point-of-sale terminal MetaTrader; parameters: the Period – 14 to Apply to – Typical Price ( HLC/3 ).
Opening of a long trading position — purchasing:
1. Appearance divergence on purchasing – Forex indicator FX5_Divergence draws a green arrow.
2. Indicator CCI crosses level-100 from below upwards.
3. The indicator of Stochastic crosses the alarm line from below upwards ( better in a zone of oversold, below level 20 ).
Opening of a short trading position – sale:
1. Appearance of divergence on sale – Forex indicator FX5_Divergence draws a red arrow.
2. Indicator CCI crosses level 100 from top to down.
3. The indicator of Stochastics crosses the alarm line from top to down ( better in a zone of overbought, above level 80 ).
Level of Stoplossa is exposed on a candle extremum on which have opened a trading position. The profit can be made with one of two methods:
- Closing of a trading position is made after crossing by indicator CCI of opposite level;
- After crossing CCI of opposite level we draw in stop and definitively close a trading position after signal receipt in counter party from indicator FX5_Divergence Forex.