This 1H Heiken-Ashi Forex strategy will make your trading becomes more relaxing.
- It’s Easy to understand (you can look at the indicator at a glance and will know if its time to take a trade, no messy lines)
- Using on 1H timeframe means you don’t have to look at the chart every second; you can check every hour or a couple of hours
what’s this strategy? How do we enter a good trade?
- Open a new chart
- Put Heiken-Ashi to the chart
- Add MA (Simple,Period: 14)
- Add OsMA with default settings (set level to 0)
- Add Momentum (set level to 100,Period: 10)
- Add RSI to the chart(Period: 5, set level to 50)
*or you can download the template Down below
*change the candle to bar, so you can see the actual open and close price is without having open two charts
LONG Market Trade:
- Heiken Ashi is close above MA 14
- OsMA is above 0
- Momentum is above 100
- RSI is above 50
SHORT Market Trade:
- Heiken Ashi is close below MA 14
- OsMA is below 0
- Momentum is below 100
- RSI is below 50
*Momentum and RSI indicator is optional confirmation, you can take trade even if these two indicators didn’t go above/below their levels, but it will be a risky trade, I take a trade when one of them is below /above the levels.
Where to set TP and SL?
- When setting SL, we usually set it to the nearest swing high/low and set TP 2 time the SL, so my risk-reward ratio is 1:2
- Close your trade if OsMA going in a different direction (e.g., you take LONG trade, OsMA is above 0, after a couple of hours OsMA is going below 0 that’s your chart signal to close a trade)
- Of course, you can set TP and SL by your style
Here’s how I usually take trade:
- Need three confirmation signals from the indicator
- If all indicator is confirmed, then I take two trade order at the closing candle
- Set my SL to nearest swing, and I’m using 2 TP levels, 1st is 1:1 from SL and 2nd is 1:2 from SL (e.g., I take the trade at 1.2000, my SL is 1.1000, my 1st TP is 1.3000, 2nd TP is 1.4000)
- If my 1st TP is hit, then I will move SL to BE
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