Forex Archer trading strategy

Forex Archer trading strategy

The following strategy suits best to those who like trading with indicators. It is one of those traders’ favorite easy-to-use/easy-to-remember strategies. You will see for yourself. 

Key ingredients:

  1. Currency pairs – EUR/USD and other majors
  2. Exponential moving average with period 86 (EMA86);
  3. Exponential moving average with period 21 (EMA21)
  4. Momentum indicator with period 8 and with the added 100 level
  5. Heiken Ashi (average bar in Japanese) indicator – an indicator used in conjunction with the candlestick charts for the trend identification and price prediction. Just for you to remember I will briefly describe its major signals. There are 5 primary signals: green candles without longer shadows indicating a solid uptrend (the best moment for buying); one candle with a small body surrounded by upper and lower shadows is a trend reversal signal; red candlesticks indicate a downtrend (they are normally used for opening short positions and exiting long ones); red candles without upper shadows is an indication of a strong downtrend.
  6. Stochastic Oscillator with the settings 8-3-3

For long setups:

  1. EMA 21 should cross the EMA86 from the bottom up; it also should be above EMA 86;
  2. Momentum Indicator should be located above 100 level;
  3. Stochastic Oscillator must be above 40 level and its major line should be above the supplementary one;
  4. Indicator Heiken Ashi should form a green candle;
  5. All the above-listed signals should appear at the same moment;
  6. The trade should be opened at the opening of the next candle;
  7. Stop-loss = 50 pips;
  8. Take-profit = 100 pips.

EURUSDH1.png

For short trades:

  1. EMA21 crosses from up to down the EMA86; it also should be below the EMA 86;
  2. Momentum indicator should be below 100 level;
  3. Stochastic Oscillator should be below 80 level, and its major line should be below the supplementary one;
  4. Indicator Heiken Ashi should form a red candle;
  5. All the above listed signals should appear at the same moment;
  6. You may open the trade at the opening price of the next candle;
  7. Stop-loss=50 pips;
  8. Take-profit = 100 pips.

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