Oz trading strategy

Oz trading strategy

2023-04-14 • Updated

Everybody knows a fairy tale about the heroic orphan child Dorothy Gale and her little dog Toto whose house was blown into the Land of Oz by a tornado.

While we don’t know the exact reason for such an exotic strategy name, we may suggest that it may bring you the size of profits as unexpected as the Kansas house that has landed on the wicked witch. So, what exactly should you know before implementing this strategy?

The preparations

Timeframe: Daily, H4                    

Currency pairs: The system is widely used for trading EUR/JPY, but it also works well with other currency pairs.

Tools: Bill Williams’ Awesome Oscillator with standard settings, Accelerator Oscillator and Stochastic Oscillator with %K period = 5, %D period = 3 and slowing = 4. We recommend implementing a Stochastic Oscillator to the Accelerator one.

To do that, you don’t need to download a specific indicator. All you need is to choose the accelerator oscillator in the menu of your MT (Insert – Indicators – Oscillators – Accelerator Oscillator).  Be sure that your navigator window is open (View – Navigator). At the final step, you need to hold out the Stochastic oscillator from the Navigator window to the Accelerator one (see the picture below). Easy as it is!


Why do we need so many indicators for this strategy? To make the magic work, we need to be sure about the reversal.  That is why the signals require confirmation.

While the Accelerator Oscillator reacts to the change of the move quicker than the Awesome one, their combination makes a signal more reliable. The Stochastic Oscillator shows the overbought and oversold levels. These levels are important for determining entry and exit points.

 Now, let’s learn the basic algorithm.

When do you need to open a long position?

  • Wait until the Stochastic oscillator crosses the 20 level from bottom to top.
  • After that, wait for both Accelerator and Awesome oscillators turn green.
  • Open your position at the opening price of the bullish candlestick.
  • We close our position when Stochastic crosses above the 80 levels together with the accelerator oscillator.
  • We place stop loss near the closest support to the entry.

Note: we don’t open a position if Stochastic crosses the 20 line, but Accelerator Oscillator doesn’t change its color.

Let’s have a look at the daily chart of EUR/JPY. There we can notice that all the conditions are met. When Stochastic crossed the 20 level from bottom to top, we did not rush to enter the market immediately because of the red Awesome Oscillator. When it finally turned green, we opened the position at the opening price of the next candlestick at 126.24. We waited several days for Stochastic and Accelerator indicators to cross above the 80 level and took profit at 129.3. We placed stop loss at 125.65, slightly above the significant support.


Now, let’s consider when you need to open a short position

  • At first, the Stochastic Oscillator should cross the 80 level upside down.
  • Then Accelerator and Awesome oscillators need to turn red.
  • Open your position at the opening price of the bearish candlestick.
  • We close our position when Stochastic lines cross below the 20 level together with the Accelerator Oscillator.
  • Stop loss will be placed above the closest resistance to the entry.

Note: we don’t open a position if stochastic crosses the 80 line, but Accelerator Oscillator stays green.


Let's consider the daily moves of EUR/JPY once again. On July 4, 2011, the Stochastic indicator crossed above the 80 level. We waited until both AO and AC turned red and entered the market at 116.97. We placed stop-loss slightly above the resistance level at 118.18. After that, we trailed our stop and followed the movement of a price. When Stochastic formed a crossover within the oversold zone and accelerator oscillator tested the 20 level we decided that it would be safe to close the position at 105.2. As a result, we earned a great amount of 1177 pips!


During the analysis, we found out that a combination of three oscillators may indeed bring very good results. Nevertheless, you should always make reasonable decisions and trail your stop losses.




Frequently asked questions

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • How to open an FBS account?

    Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Trader Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera