This is a Trendline Breakout Trading Strategy With Awesome Oscillator. In this case, the awesome oscillator is used for trad entry confirmation.
In order for you to be able to use this forex trading system, you must know how to draw trendlines.
Timeframes required: Any
Currency Pairs: Any
Forex Indicators: Awesome Oscillator with default settings.
For the buying and selling rules, refer to this chart below showing you the buy and sell setups:
- Draw a downward trendline and wait for price to break it, which means a candlestick closes above the trendline.
- When that happens, next thing you do is check to see if you see the awesome oscillator bar is green and if so you got to step 3.
- Place a buy stop order at least 2 pips above the high of that candlestick that is above the trendline.
- Place your stop at least 2 pips below the low of the nearest swing low.
- For take profit, use previous swing high point or if that does not exits, then use 1:2 or 3 risk to reward ratio to calculate your profit target.
- Draw an upward trendline and wait for price to break it, which means a candlestick closes below the trendline.
- When that happens, next thing you do is check to see if you see the awesome oscillator bar is red and if so you got to step 3.
- Place a sell stop order at least 2 pips below the low of that candlestick that is below the trendline.
- Place your stop loss order at least 2 pips above the high of the nearest swing high point.
- For take profit, use previous swing low point or if that does not exits, then use 1:2 or 3 risk to reward ratio to calculate your profit target.
DISADVANTAGES OF TRENDLINE BREAKOUT STRATEGY WITH THE AWESOME OSCILLATOR
As usual, all forex trading strategies have their weaknesses and here are some for this system:
- if the nearest swing low or swing high points are far away, your stop loss distance can be huge.
- you really need to know how to draw the correct trendlines…trendlines that matter and if you are new trader, this can take some time.
- ranging market may cause some problems with this strategy.
ADVANTAGES OF TRENDLINE BREAKOUT TRADING STRATEGY WITH THE AWESOME OSCILLATOR
- A really powerful trading system when used in a strongly trending market.
- allows you to jump in just in the beginning of the trend and you can ride out the trend most of the way if you just wait for the next trendline to be intersected before you exit your trade.
- Good risk:reward ratio.
- Placing stop loss below nearest swing low or above nearest swing high stops your trade from getting stopped out frequently.
You may be also interested in reading about these:
- free price action trading course
- 12 best price action trading strategies
- or 200 ema with awesome oscillator forex trading trading strategy
- or Awesome Oscillator Indicator Forex Trading Strategy
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