2×2
Last updated
Last updated
I would love to say that "this strategy is simple as 2x2". But it's not. Reality is often disappointing.
Indicators:
(150, close)
(3, close) with levels: 80, 50, 20 (1st signal)
(6, 3, 3) with levels: 70, 30 (2nd signal)
Key conditions:
The strategy is applied on timeframes between H4 and D1. Stop Loss is placed above or below the most recent local extremum. Take Profit is set at 2 to 3 times the Stop Loss or managed using a trailing stop with a step of 30 to 50 points. Follow the overall trend and avoid premature exits based on unclear oscillator signals.
BUY conditions (all conditions must be met):
The price is trading above the SSMA (150).
The Heikin Ashi candle is white (or green).
The RSI (3) crosses above the level of 20 from below.
The Stochastic (6, 3, 3) crosses upward in the zone below 30 and turns upward.
SELL conditions (all conditions must be met):
The price is trading below the SSMA (150).
The Heikin Ashi candle is red.
The RSI (3) crosses below the level of 80 from above.
The Stochastic (6, 3, 3) crosses downward in the zone above 70 and turns downward.
Exit criteria: Exit the trade when the Stop Loss or Take Profit is hit, or when the signal is entirely invalidated. Avoid closing trades prematurely if the oscillator signals are ambiguous.
Open a chart with a timeframe of H4 or D1. Apply the SSMA indicator with a period of 150 (close). Add Heikin Ashi candles to the chart. Apply the RSI indicator with settings (3, close) and levels 80, 50, and 20. Add the Stochastic indicator with settings (6, 3, 3) and levels 70 and 30.
For a BUY trade, confirm the price is above the SSMA, the Heikin Ashi bar is white (or green), the RSI crosses above the level of 20, and the Stochastic crosses upward below 30. Enter the trade and set the Stop Loss below the last local low.
For a SELL trade, confirm the price is below the SSMA, the Heikin Ashi bar is red, the RSI crosses below 80, and the Stochastic crosses downward above 70. Enter the trade and set the Stop Loss above the last local high. For both directions, set the Take Profit at 2 to 3 times the Stop Loss or trail the Stop Loss with a step of 30 to 50 points. Exit trades based on the specified criteria.
