This trading system uses modified HeikenAshi candlesticks instead of standard candlesticks. Moving averages act as breakout levels. The direction of trade is chosen for the older TF.
- Currency pairs: any highly volatile currency pairs.
- Timeframe: working TF - M30, trading is carried out in the direction of the older trend on D1. TF M5 is used to confirm exit signals.
- Bidding time: any.
- Risk management: After calculating the stop-loss, choose such a volume of the lot, that the risk was not more than 2-5% of the deposit on one transaction.
The schedule should look like this:
Determining the direction of the trade
- Switch to the daily chart (TF D1) of the desired currency pair.
- Determine the value of moving average 10 EMA of the previous day (let it be C1).
- Determine the value of the moving average 10 EMA of the previous day (let it be C2).
- If C1 > C2, then we assume that the trend is upward. Otherwise, it is downward.
Signals indicating the opening of a long position (buying):
- There should be an uptrend on the older timeframe.
- On the M30, the candle breaks through the 50 SMA moving average and closes above it.
Signals indicating the opening of a short position (sale):
- There should be a downtrend on the older timeframe.
- On M30, the candlestick breaks through the 50 SMA moving average and closes below it.
Rules for setting a stop loss:
This trading system does not have a stop loss, but when opening a position, it is recommended to hedge yourself and set the stop close to the nearest maximum/minimum (depending on the direction of the trade).
Rules for exiting a deal:
- On the M5, the candle broke and closed below the 50 SMA.
- On M5, the candle broke and closed below the 10 EMA (conservative variant).
- On M5 the oscillator turned towards zero and a group of candles with a small body size appeared on the chart.