This is a free trading strategy that traders can down load for use in their trading. Just as the name suggests, it depends on the waves that are formed as the market prices rise and fall. Actually if you have look at the forex market you will notice that the market does not have a continuous trend of the market prices. The prices goes up for a certain period and then goes down for a certain period depending on the market forces.
According to the currency pair that you are trading, the market prices may swing rapidly or take quite a long time before they change their trend. However the mostly traded currency pairs will exhibit more waves due to liquidity and their volatility. Therefore while using this trading strategy you should always look for the currency pair that has a tendency of forming waves. Examples of these currency pairs are EURUSD, AUDUSD, GBP/USD and USD/CAD.
The Wave Trades Forex strategy uses a combination of indicators which includes:
- A_info
This indicator is responsible for displaying the range, spread, swaps and the time remaining for the next bar to form.
- FX Fish
This indicator is usually displayed on a separate chart and has green and red bars. It also has three level lines that you should take note of. It has two 0.3 lines and 0.0 line. The red bars usually form below the 0.0 line while the green bars form above the 0.0 line. The 0.3 lines are usually for confirming whether to open a trade or not.
- Parabolic
This is displayed as the white dots on the main trading chart. When the dots form above the market prices there is an imminent down trend but if they form below the market prices there is a probable uptrend.
- MACD
This is also displayed on a separate chart and it has a zero line that is used to indicate whether the trend is upwards or not. When the MACD form below the zero line then the trend is down while the vice versa is true.
- SHI-SIGNAL
- TraderWawasan TE v2.0 indicator.
- VS_PivotsD
How to open and close trades using the Wave Trades Forex strategy
As a trader you should at all-time open a position when all the indicators give the same signal. If all the indictors give a sell or buy signal only one gives the opposite signal, avoid trading.
For you to open a sell the following should be the case:
- The FX_fish indicator should be red and below the zero line.
- The MACD should be below the zero line.
- The parabolic indicator should be above the market prices.
- The TraderWawasan TE v2.0 indicator should be yellow.
Example of placing a sell.
How to open and close trades using the Wave Trades Forex strategy.
As a trader you should at all-time open a position when all the indicators give the same signal. If all the indictors give a sell or buy signal only one gives the opposite signal, avoid trading.
For you to open a sell the following should be the case:
- The FX_fish indicator should be red and below the zero line.
- The MACD should be below the zero line.
- The parabolic indicator should be above the market prices.
- The TraderWawasan TE v2.0 indicator should be yellow.
Example of placing a buy.
Free-Wave-Trades-Forex-strategy . rar
Source : forexobroker.com
