This strategy is a trend trading strategy, has a pretty good RR ratio, and if we know and follow the trading principles, it can make a profit in the long run.

Now we go into the rules of the trading.

First, you note the chart and indicator settings according to the instructions below:
  • Session: Asian session or European session
  • Time frame: M1
  • Technical indicators: MACD (12,26,1), Stochastic (5, 3, 2), and 2 EMAs in which EMA 1 has period 5 (price close), EMA 2 has period 5 (open price).
In which, EMA 1 and EMA 2 will be the main indicator to identify the trend and the MACD indicator will act to confirm the trend or the momentum of the trend.

The stochastic indicator will have the role of determining the entry point of trading orders. However, in the case where there are many supports and resistances at the trading price range, you can trade without stochastic signals.

After set up, the price chart will look like the image below:


Trading principles

For buy orders
  • When EMA 1 crosses above EMA 2, MACD moves up, now we can confirm the market in an uptrend and look for buying opportunities.
  • Stochastic indicator crosses above 20 (Note that stoch crossed to 20 but not overbought, preferably near above 20)
  • Signal to open a long position: When the above conditions are met, we now look for a bullish candle that closes higher than the previous one and open a long position at the market price when the signal candle closes.
  • Stop loss below the lowest price of the signal candle or at least 20 pips.
See an example of a buy order below:


For sell orders
  • When EMA 1 crosses below EMA 2, MACD moves down, we can confirm the market in a downtrend and look for selling opportunities.
  • Stochastic indicator intersects below 80 (Note that stoch crossed down to 80 but not too oversold, preferably near below 80)
  • Signal to open a short position: When the above conditions are met, we now look for a bearish candle that closes lower than the previous one and opens a short position at the market price when the signal candle closes.
  • Stop loss above the signal candle's highest price or at least 20 pips.
See examples of sell orders below:


Important note when using this system
  • No trading at news time
  • Risk of no more than 1% per trading
  • Take profit is random based on market conditions but if you are unsure it is possible to exit based on a crossover of 2 EMAs or on a reversal pattern.