Simple Two Indicators Forex Strategy

Simple Two Indicators Forex Strategy

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Introduction: 

The simple two indicators forex trading strategy consists of two basic indicators: Stochastic Oscillator and MACD and provides entry, exit and stop loss levels.

The strategy was designed to buy dips in up trends and sell rallies in down trends, thus keeping the risk as low as possible for the trader.

Preferred Time Frame: 15 Min

Preferred Currency Pairs: Any currency pair with good volatility

Indicators:

  • Stochastic Oscillator (5,3,3)
  • MACD (5,35,5)

Entry Rules:

  • Buy if MACD >0 and Stochastic Oscillator trades below 20 and crosses back above (buy dips)
  • Sell if MACD <0 and Stochastic Oscillator trades above 80 and crosses back below (sell rallies)

Stop Loss Rules:

  • For buy orders: Place stop loss 5 pips below most recent support level
  • For sell orders: Place stop loss 5 pips above most recent resistance level

Trade Objective: 50 pips or more

Simple Indicators Forex Trading Strategy Example:

Simple Two Indicators Forex Strategy

The first short signal at 1.3202 reached our 50 pip target at 1.3152. The second short entry was stopped out for a 15 pips loss (+33 max).