This is a daily charts strategy that can make hundreds of pips per trade for you without you having to spend hours staring at your computer monitor. Wake up in the morning, scan the charts on the daily charts, setup your trade and that’s it. After that you are free to do whatever you want to do. This is a simple daily charts trading strategy that uses only two indicators. One is the Bill William’s Acceleration/Deceleration Oscillator (AC). The second is the Stochastic.
Bill Williams had developed the AC Oscillator. Bill is famous for this book, Trading Chaos. He is also known for introducing the concept of fractals. We don’t need to go deep behind the AC Oscillator Theory as the rules to use it in our daily charts strategy are simple. Stochastic is an important oscillator that has two lines the %K and the %D. %K line is the main line and is colored dark while the %K line is shown dotted on the charts.
Let’s set the system up. Open your MT4 platform. Open any currency daily chart and attach the Bill William’s Accelerator Oscillator (AC) to the chart. Choose Green as the value up color and red as the value down color or whatever colors you like, it doesn’t matter. Attach the stochastic with setting of 5,3 and 3 on top of the AC oscillator.
These are the rules for entering into a long trade. The green AC is above zero and the Stochastic is above zero. When red AC is below zero and Stochastic is below zero, exit the long trade. These are the rules for entering and exiting the short trade. Red AC should be below zero and the Stochastic is below zero. When green AC is above zero and the Stochastic is above zero, exit the short trade. Enter a stop loss of 100 pips below the long entry and 100 pips above the short entry.
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Forex Charts as the primary tool for technical analysis as workers look for patterns or anomalies in the movement of prices in the past to predict the move could happen in the future.