Ride the Wave trading

Ride the wave strategy is day trading system simple that you apply only during the London and New York sessions.

Currency pairs: EUR/USD, GBP/USD, USD/JPY.

Time Frame 1 min, 3 min, 15 min , 30 min.

Ride the wave doesn't work in range markets but only in high volatile trending markets.

Setup chart for trading:

1. Open a EUR/USD candlestick or bar chart;

2. Add a exponential moving average of 3 period ,

3. Add a exponential moving average of 20 period;

4. Add below the main chart the Chaos Awesome Oscillator;

5. Bollinger Bands (20, 2.0) is optional.

Trading Rules Ride the wave trading

Buy

Buy signal there is when the 3 exponential moving average has crossed up through the 20 exponential moving average . At the same time, the Chaos Awesome oscillator is above zero line, going upward.

Sell

Sell signal there is when the 3 exponential moving average has crossed down through the 20 exponential moving average . At the same time, the Chaos Awesome oscillator is below zero line, going downward.

Profit Target:

Chaos Awesome Oscillator changes color!

The main idea is to ride the wave up and down, catching the best waves (moves) of the market.

In the picture below Ride the wave on 1 min chart in action:

Circle are entry points, Ovals the exit points. Chaos Awesome turns color. The best moves are when the Chaos breaks it's zero line. If it's flat stay out, even if 3 EMA crosses the 20 EMA.

Total is 7 trades with 111 pips in gain in an 3 hour period.

In the next picture EUR/USD 10 min Ride the wave might not cacth all the exacts tops and bottoms but you are trading the best move of the day with a little stress. Just use the Caos Awesome change to take profits. Entrie are circles, ovals are exits.

It's an easy and simple method that keeps you on the right side of the trend.

Best trades there are when price reversing bounce off outer band and come back into the bands for through the 20 EMA.

For time frame 1 min , 3 min and 5 min you can add on exponential moving average of 200 period with following rules for trading:

Buy

3 EMA above 20 EMA and 200 EMA

20 EMA above 200 EMA

Chaos Awesome oscillator crossing it's zero line, going up.

Sell

3 EMA below 20 EMA and 200 EMA

20 EMA below 200 EMA

Chaos Awesome oscillator crossing it's zero line, going down.

Exit as the previous rules.