The Broken Wave Trading System

The Broken wave is a classic trading system discretionary based on indicators of momentum, trend and volatility. This strategy requires practice.

Time Frame 15 min, 30 min, 60 min, 240 min.

Currency pairs majors.

Indicators:

Bollinger Bands (20, 2),

Simple moving average 10 period (close),

Simple moving average 20 peiod (close),

MACD (12, 26, 9),

PSAR Defaul Setting.

Buy trade

1 Wait for PSAR to form below price.

2 Chek that MACD histogram has crossed above the signal line.

3 Chek that the Bollinger Bands are starting to widen or the price broken the upper band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed above the 20 SMA.

5 When a candle has closed above the 10 SMA and SMAs, enter a buy trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close above both Smas.

6 Set a stop loss under recent swing low up to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

Sell Trade

1 Wait for PSAR to form above price.

2 Chek that MACD histogram has crossed below the signal line.

3 Chek that the Bollinger Bands are starting to widen or the price broken the lower band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed below the 20 SMA.

5 When a candle has closed below the 10 SMA and SMAs, enter a sell trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close below both SMAs.

6 Set a stop loss above recent swing high to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

 Broken Wave trading system

Broken Wave trading system