Successfull Forex Awesome Oscillator Trading System with Bollinger Bands and Heiken Ashi Histogram – Awesome Oscillator (AO) is a momentum indicator reflecting the precise changes in the market driving force which helps to identify the trend’s strength up to the points of formation and reversal.
Awesome Oscillator Strategy includes 3 ways of trading. The first way is to open a sell position when the oscillator is below the zero line forming a peak, and open a buy position when the oscillator is above the zero line forming a gap.
Another way is to open a sell position when the oscillator forms two peaks above the zero line, where the second high is lower than the previous one. And, conversely, traders watch to open a buy position when the oscillator forms to lows below the zero line with the last one not as low as the previous one.
The third way is to account crossing the zero line. When the oscillator crosses it from up to down, it is time to open a sell position and when it crosses from down to up, it is time to open a buy position.
This technique is for those who want the most simple method that is almost fool-proof. It must be done ONLY during the busiest trading hours, 3 am to 11 am EST. This method doesn’t work in sideways markets, only in volatile trending markets.
Best Time Frame: 15 and 30 min.
Currency pairs: EURUSD GBPUSD.
SET UP YOUR CHARTS:
- Open a EUR/USD candlestick chart with a white background.
- Add a moving average of 3, Exponential, Close( EMA). Change the color of the 3 ema line to black.
- Bollinger Bands (20,2)
- Add your Chaos Awesome Oscillator.
- Add your Heiken Ashi Histogrem.
- Momentum (21).
or use the ForexWOT-AwesomeOscillatorTrading.tpl template and here’s the strategy:
- Enter a long position when the black 3 EMA has crossed up through the red 20 EMA (middle band). At the same time, the Chaos should be approaching or crossing it’s zeroline, going up
- Heiken Ashi Histogram blue bar and above the line
- Momentum indicator upward above 100.08 line.
- Enter a short position when the black 3 EMA has crossed down through the red 20 EMA (middle band). At the same time, the Chaos should be approaching or crossing it’s zero line, going down.
- Heiken Ashi Histogram red bar and above the line
- Momentum indicator downward below 99.92 line.
When to take your profit: Simple…when your Chaos Awesome Oscillator turns a different color..!
BEGINNERS NOTE :
Focus on a single currency pair, expand as you better your skills. The world of currency trading is deep and complicated, due to the chaotic nature of the markets, and the diverse characters and purposes of market participants.
It is hard to master all the different kinds of financial activity that goes on in this world, so it is a great idea to restrict our trading activity to a currency pair which we understand, and with which we are familiar.
Beginning with the trading of the currency of your nation can be a great idea. If that’s not your choice, sticking to the most liquid, and widely traded pairs can also be an excellent practice for both the beginner and the advanced traders.