The Synthetic Bands Oscillator forex trading strategy follows the trend and gives you great trading signals on any currency pair and timeframe.
A Bill William’s indicator (Awesome Oscillator) is one of the indicators that makes up this system, owing to its ability to measure price momentum.
Chart Setup
MetaTrader4 Indicators: Detrended_Synthetic_Price_dbarsf.ex4 (Inputs Variable Modified; Change color on: Change color on zero cross), Doda-BBands.ex4 (Inputs Variable Modified; Nbars=1000000), Awesome Oscillator.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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Download the Synthetic Bands Oscillator Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets put on display:
- If the green bars of the Detrended_Synthetic_Price_dbarsf.ex4 custom indicator gets put on display on the activity chart as seen on Fig. 1.0, a buy trigger is said to be looming.
- If the blue dotted line of the Doda-BBands.ex4 custom indicator gets aligned below price bars as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the stipulated currency pair.
- If the green and red histograms of the Awesome Oscillator MT4 indicator break above the 0.00 level as depicted on Fig. 1.0, a buy signal is said to be imminent.
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:
- If while a buy signal is running, the Detrended_Synthetic_Price_dbarsf.ex4 custom indicator turns red, an exit or take profit is recommend.
- If the Doda-BBands.ex4 custom indicator readjust to form a red dotted line above the candlesticks as illustrated on Fig. 1.0, an exit or take profit is advised.
- If the histogram of the Awesome Oscillator forms below the 0.00 level during a bullish trend, it is an indication of weaning bull power, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red bars of the Detrended_Synthetic_Price_dbarsf.ex4 custom indicator gets put on display on the activity chart as seen on Fig. 1.1, a sell trigger is said to be on the horizon.
- If the red dotted line of the Doda-BBands.ex4 custom indicator gets aligned above price bars as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the designated forex pair.
- If the green and red histograms of the Awesome Oscillator MT4 indicator break below the 0.00 level as illustrated on Fig. 1.1, a sell signal is said to be in the offing.
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:
- If while a sell alert is ongoing, the Detrended_Synthetic_Price_dbarsf.ex4 custom indicator turns green, an exit or take profit is advised.
- If the Doda-BBands.ex4 custom indicator readjust to form a blue dotted line below the candlesticks, an exit or take profit will do.
- If the histogram of the Awesome Oscillator forms above the 0.00 level during a bearish trend (refer to Fig. 1.1), it is an indication of weaning bear power, hence an exit or take profit will meet our requirements.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Awesome Oscillator “AO” is an indicator used to gauge market momentum.
AO computes the difference of a 34 Period and 5 Period Simple Moving Average.
AO is normally deployed to confirm trends or to anticipate likely reversals.
The Doda-BBands.ex4 indicator is the modified version of Bollinger band and generates buy and sell signals based on this premise.
The Detrended_Synthetic_Price_dbarsf.ex4 custom indicator gauges the trend for a wide range of currency pairs.
It changes the color of the candlesticks to green (bullish trend) and red (bearish trend).