Oscillator Trading Signals Forex Trading Strategy

A simple trading strategy (Oscillator Trading Signals forex trading strategy), which is being discussed has the necessary ingredient to reward patient market participants.

The strategy deploys simple technical tools i.e. Moving Average of Oscillator and MATradingSignals indicators as a means of deciphering trends.

Oscillators are very good at spotting overbought and oversold levels, hence our adoption of the Moving Average of Oscillator MT4 indicator.

The MATradingSignals is added to give us trend direction. This is a therefore a fine blend that will appeal traders across board.

Chart Setup

MetaTrader4 Indicators: MATradingSignals.ex4 (Inputs Variable Modified; FastMA_Mode=2, SlowMA_Period=16), Moving Average of Oscillator.ex4 (Inputs Variable Modified; Fast EMA=24, Slow EMA=30, MACD SMA=27)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any (London, New York, Tokyo)

Currency Pairs: Any pair

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Download the Oscillator Trading Signals Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the lime green upward pointing arrow of the MATradingSignals custom indicator gets placed slightly below the candlesticks as seen on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the selected currency pair.
  2. If the red histograms of the Moving Average of Oscillator MT4 indicator stays above the 0.00 level as depicted on Fig. 1.0, the sentiment in the market is said to be bullish, as such a buy signal is looming.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If during a buy signal a red downward pointing arrow pops up above the candlesticks, it is an indication of halting bull power i.e. an exit or take profit will suffice.
  2. If a red histogram of the Moving Average of Oscillator MT4 indicator readjust to form below the 0.00 level as illustrated on Fig. 1.0, an exit or take profit is duly advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow of the MATradingSignals custom indicator gets placed slightly above the candlesticks (refer to Fig. 1.1), price is said to be taken lower i.e. a trigger to sell the designated currency pair.
  2. If the red histograms of the Moving Average of Oscillator MT4 indicator stays below the 0.00 level as shown on Fig. 1.1, the sentiment in the market is said to be bearish, hence a sell signal is imminent.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If during a sell signal a lime green upward pointing arrow pops up below the candles, price is said to be making a bullish reversal, hence an exit or take profit will do.
  2. If a red histogram of the Moving Average of Oscillator MT4 indicator readjust to form above the 0.00 level as seen on Fig. 1.1, an exit or take profit is duly recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Oscillator Trading Signals Forex Trading Strategy

About The Trading Indicators

The MATradingSignals.ex4 is a moving average indicator that sets its fast MA period and slow MA period at 6 and 8 respectively.

It deploys a lime green upward pointing arrow and red downward pointing arrow to depict buy and sell signals respectively.

The Moving Average of Oscillator indicator is designed after the MACD oscillator, as such it gauges and plots the difference between the oscillator and its oscillator smoothing.

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