Type of Handle System: Trading the trend
Timeframe: H4
Currency pairs: EURCHF
Used Indicators: SMA 100, MACD (15,26,9), Damiani_Volatmeter
General Description:
The H4-Simple-system describes the handle of the trends that should be considered while the parent runs and only in this direction should be in lower-level trends are traded. The SMA 100 is used very much and, for many as a kind of resistance / support. This we want to take advantage of this system.
The Damiani_Volatmeter indicator is displayed in a separate window in the upper left corner indicates whether he should be traded or not, then it is there, "trade" or "no trade". This indicator shows whether the currency pair is in a range or not.
Long-trade:
- The Candle cuts through the SMA 100 from the bottom up and closes above the 100 SMA
- The histogram of the MACD is above 0
- Note Damiani-Volatmeter whether to display "trade" or "no trade"
Short-Trade:
- The Candle cuts through the SMA 100 from top to bottom closes and below the SMA 100
- The histogram of the MACD is below 0
- Note Damiani-Volatmeter whether to display "trade" or "no trade"
The stop loss should be put at the last high or last low or the high / low of the red / blue arrow.
Should be taken no more than 1-3% in the risk for the exit of the trade, different variants can be selected, eg You can set a trailing stop which, however, should not be too small. Author of a further variant of the system is given: 1/3 of the position close at 40 pips in profit, to run another 1/3 at 70 pips in profit and the rest can and stop loss to breakeven.
The system is indicated by the Auhtor for EURCHF, but can easily be its implementation for all currency pairs.
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