Elliot Wave Oscillator Forex Trading Strategy
The market might get you confused sometimes and therefore, you need a system that simply tells you when to get in get out of trades in a safe manner.
The Elliot Wave Oscillator forex trading strategy provides you with easy to read buy and sell signals to getting in and out of forex trades without the need to second guessing.
It is composed of the popular Elliot Wave oscillator and a trend following bar indicator.
MetaTrader4 Indicators: TrendManager.ex4 (Input Variable Modified; TM_Period=21, TM_Shift=4), Elliot_Wave_Oscillator.ex4 (Input Variable Modified; SlowMA=45)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets displayed:
- If the blue bars of the TrendManager custom indicator gets aligned somewhat below the candles as depicted on Fig. 1.0, price is said to be pushed higher, hence a signal to go long on the designated currency pair.
- If the lime and green histograms of the Elliot_Wave_Oscillator.ex4 custom indicator gets positioned above the 0.00 level as shown on Fig. 1.0, it is an approval of bullish market sentiment i.e. a trigger to buy the specified forex pair.
Stop Loss for Buy Entry: Place stop loss 1 pip below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes preference:
- If the red bar of the TrendManager custom indicator pops up during a buy trend, bullish price pressures is believed to be weaning, hence an exit or take profit will do.
- If the green/lime histograms of the Elliot_Wave_Oscillator.ex4 custom indicator readjust to form a red histogram below the 0.00 level, an exit or take profit should be duly considered.
Sell Entry Rules
Activate a sell order if the following holds true:
- If the red bars of the TrendManager custom indicator gets aligned somewhat above price bars as illustrated on Fig. 1.1, price is said to be taken lower, hence a signal to go short on the specified forex pair.
- If the red and maroon histograms of the Elliot_Wave_Oscillator.ex4 custom indicator gets positioned below the 0.00 level as seen on Fig. 1.1, it is an endorsement of bearish market sentiment i.e. a trigger to sell the listed fx pair.
Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the blue bar of the TrendManager custom indicator gets displayed while a sell signal is running, bearish price pressures is said to be halting, hence an exit or take profit will suffice.
- If the red/maroon histograms of the Elliot_Wave_Oscillator.ex4 custom indicator realigns to form a green histogram above the 0.00 level, an exit or take profit is advised.
Sell Trade Example
About The Trading Indicators
The Elliot_Wave_Oscillator.ex4 custom indicator is an oscillator that shows the difference of, a 35 and a 5 period simple moving average (SMA) of prices illustrated as a histogram aligned above and below a zero level.
The TrendManager.ex4 indicator is designed to follow trend during volatile market sessions.