AFStar Trading System Strategy: Trading by Support and Resistance Levels

В 89 issue of ForTrader.org magazine we will consider a trading strategy called AFStar Trading System. The peculiarity of this tactic is the fact that trading to one or the other side is carried out depending on the position of the price in relation to support/resistance levels and the confirmation of the signal by divergence and other indicators.

Trading strategy settings

• Currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/CHF, USD/CAD, GBP/JPY, EUR/JPY, AUD/NZD.
• Timeframe: any
• Bidding time: any.
• Risk management: after calculation stop loss choose such a lot volume that the risk was not more than 2-5% of the deposit on one transaction.

Installing indicators and strategy template

1. Unpack the archive with templates and indicators.
2. Copy the indicators to the folder MQL4 -> indicators.
3. Copy the templates into the templates folder.
4. Restart the terminal.
5. Open the chart of the desired currency pair.
6. Install a template named AFStar Trading System.

Signals indicating the opening of a long position (buying)

1. One of the following conditions is sufficient: the price touches or is below D1 Sup C; the price is between H4 Sup C and D1 Sup C; the price touches or is below H4 Sup C.
2. A blue up arrow appeared.
3. At RSI indicator (black line) there is a bullish divergence.
4. The RSX indicator is colored green.
5. A blue bar has formed on the T3 Price indicator.
6. A stop loss is placed just below the nearest local minimum.

Signals indicating the opening of a short position (sale)

1. One of the following conditions is sufficient: the price touches or is above the level of D1 Res; the price is between the level of H4 Res and the level of D1 Res; the price touches or is above the level of H4 Res.
2. A purple downward arrow appeared.
3. The RSI indicator (black line) shows bearish divergence.
4. The RSX indicator is colored red.
5. A red bar has formed on the T3 Price indicator.
6. A stop loss is placed just above the nearest local maximum.

Exit strategies

1. Using a fixed take profit.
2. When a signal appears in the opposite direction.
3. When the price reaches Pivot points.

According to experts of ForTrader.org magazine, AFStar Trading System strategy will attract traders' attention because of the precise wording of the rules of entering the market, but we recommend using it on a real deposit only after testing it on demo account and optimized by the trader for his trading style.

Download Trading Strategy Template and Indicators

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