This is a guest post by Ahmad Hassam
This is a daily timeframe strategy that can make hundreds of pips per trade for you without you having to spend hours staring at your computer monitor. Wake up in the morning, scan the charts on the daily timeframe, setup your trade and that’s it. After that you are free to do whatever you want to do.
Let’s discuss this Daily Timeframe Strategy. This Daily Timeframe strategy uses only two indicators. These are the Bill William’s Accelerator Oscillator (AC) and the Stochastic Oscillator. The Bill William’s Acceleration/Deceleration Indicator (AC) measures the acceleration and deceleration of the current driving force.
Bill Williams is famous for his application of Chaos Theory to Trading plus his concept of fractals. Bill Williams says that before price behavior changes, momentum changes and before momentum changes, there is acceleration and deceleration. Knowing acceleration/deceleration can give you an advanced warning. This oscillator does exactly that.
Stochastic oscillator is another popular indicator that tells you about the overbought and oversold condition in the market. It has two lines, the %K and the %D. %D line is the moving average of %K. %K is shown as a solid line while %D is shown as a dotted line.
Let’s set the system up. Open your MT4 platform. Open any currency pair daily chart and attach the Bill William’s Accelerator Oscillator (AC) to the chart. Choose Green as the value up color and red as the value down color or whatever colors you like, it doesn’t matter. Attach the stochastic with setting of 5,3 and 3 on top of the AC oscillator.
Enter into a long trade when the green AC is above zero and the Stochastic is above zero level. Exit the long trade when the red AC is below zero and the Stochastic is below zero. Similarly, enter into a short trade when the red AC is below zero and the Stochastic is below zero. Exit the short trade when the green AC is above zero and the Stochastic is above zero. Since, you are using the daily timeframe, you need a wide stop loss. Enter the stop loss of 100 pips below the long entry and 100 pips above the short entry.
Practice this Daily Timeframe Strategy on your demo account and see how easily it can make hundreds of pips per trade for you. Once, you have practiced this Daily Timeframe Strategy and mastered it on your demo account, you can trade live with it. Good Luck!
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