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Saturday, July 24, 2021

Forex Trading Guide 2021: HILO strategy for GBPJPY

The HILO trading strategy for the GBPJPY pair is a completely simple strategy, which is built on only 2 indicators: Moving Average and Average Directional Movement Index (ADMI). The recommended timeframe for trading is H4.

The essence of the strategy:

1. Plot the average EMA with a period of 8 on the chart, which is formed at the Open prices.

2. Plot the average SMA with a period of 21 on the chart, which is formed at the High prices.

3. Plot the average EMA, with a period of 21, which is formed at the Low prices

4. Set the Average Directional Movement Index indicator with a period of 14. Set the level 15 for it.

Opening short positions:

The average EMA with a period of 8 crosses upwards from the SMA (21), which is plotted at the Low prices.

The price closes below the 21 period average SMA, which is displayed at the Low prices.

ADMI indicator goes up and is above 15

The -DI line crosses + DI from the bottom up above level 15. As a rule, the crossing occurs before the crossing of the fast moving average with the SMA with a period of 21 (Low).

Opening long positions:

EMA moving average with a period of 8 from top to bottom crosses the average SMA with a period of 21 (High)

The price closes above the SMA moving average line with a period of 21 (High)

ADMI is growing

ADMI is located above level 15

The + DI line crosses the -DI line upwards above level 15. As a rule, the crossing occurs before the crossing of the fast moving average with the SMA with a period of 21 (High). 

You can also try this strategy on other instruments. Below is an example of this strategy for the S&P 500 Index.

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