EWO 34 Forex Trading Strategy

One of the necessary tools needed to advance your trading career must include a well thought-out trading strategy that offers a good win rate.

The EWO 34 forex trading strategy is designed to take advantage of the overall trend with easy to buy and sell trade entries.

Let’s look at how it all stacks up.

Chart Setup

MetaTrader4 Indicators: SMMA-Crossover_Signal.ex4 (Colors Width modified; #0=3, #1=3), Elliot Wave Oscillator34.ex4 (default setting)

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

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If the dark khaki histograms of the Elliot Wave Oscillator34 custom indicator gets aligned above the 0.00 level as shown on Fig. 1.0, price is said to be pushed somewhat higher, as such a buy signal is said to be in place.
  2. If the spring green upward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator pops up below the candlesticks as displayed on Fig. 1.0, the sentiment in the market is moving towards being bullish, hence taking up long position(s) is advised.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions get displayed:

  1. If the dark khaki histograms of the Elliot Wave Oscillator34 custom indicator takes up position below the 0.00 level during a buy signal, it is a signal to exit or take profit without delay.
  2. If the red downward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator takes up space above the candlesticks as seen on Fig. 1.0, price is said to be making a U-turn away from its ongoing buy trend, hence an exit or take profit will do.

Sell Entry Rules

Place a sell order if the following gets exhibited on the price chart:

  1. If the dark khaki histograms of the Elliot Wave Oscillator34 custom indicator gets aligned below the 0.00 level as displayed on Fig. 1.1, price is said to be pushed somewhat lower, as such a sell signal is said to be in place.
  2. If the red downward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator pops up above the candlesticks as seen on Fig. 1.1, the sentiment in the market is said to be somewhat bearish, hence short position(s) will be an appropriate market stance.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the dark khaki histograms of the Elliot Wave Oscillator34 custom indicator takes aligns above the 0.00 level during a sell signal, it is a signal to exit or take profit straight away.
  2. If the spring green upward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator takes up space below the candlesticks as seen on Fig. 1.1, price is said to be making a U-turn away from its ongoing bears market, hence an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Elliot Wave Oscillator34 custom indicator is an oscillator that depicts the difference of, a 34 and a 5 period simple moving average (SMA) of prices illustrated as a histogram aligned above and below a zero level.

The SMMA-Crossover_Signal.ex4 indicator is a trend following indicator that is built on the principle of two Simple Moving Averages crossover.

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