The uniqueness of this strategy lies in the fact that a time limit is set when trading. That is, transactions can only be made during certain trading hours.
When trading, the time of trading sessions is recorded. To understand all this, you need to know that there are four trading sessions on Forex, due to which the market operates around the clock.
The sessions are as follows:
According to this strategy, trades will be held only during the American trading session, since it is the most active one. At the same time, we will take the EUR / USD currency pair with a timeframe of 60 minutes as a trading instrument. First, we set two indicators on the chart of the currency pair:
1. A moving average with an averaging period of five, as well as a linear weighting method, as a data source, we select the closing prices.
2. Trend Magic indicator, let’s leave the indicator settings as standard.
The rules for performing operations by strategy will be as follows:
The first rule is waiting for the opening time of the American session; the rest of the time of the operation is not carried out at all. Moscow time, the opening time of the American session is 16:00, or at 12:00 GMT.
The second condition is that you must first mark the value of the moving average by the value of the candlestick closing price, which precedes the start of the opening of the American session. A horizontal line must be drawn at this level.
When the session opens, we make a deal. To buy, it is necessary for the moving average to cross the marked level upwards, to sell – downwards. Then we wait for one more hour and if the upward movement continues in the case of a purchase, then we set the stop loss at 70 points and the take profit at 50 points, if the price went down, then we close the deal at the market. In the case of a sale, of course, the opposite is true.