The Secret Weapon is a trend
momentum strategy for scalping and intraday trading.
Sessions for trading: London and New
York.
Time Frame 1 min or higher.
Currency pairs: majors with low spread
smaller of 2 pips.
Indicators:
SMA 4 period, close.
SMA 30 period, close.
Bollinger Bands (10, 2.0),
Chaos Awesome, or MACD (12,26, 9),
The Ultimate Oscillator (or Momentum),
the MA of RSI or plain RSI) and the
StochasticRSI.
Optional for the Directional Movement
System and Support and Resistance.
Trading Rules The
Secret Weapon
Buy
4 SMA crosses
upward the middle band of Bollinger Bands,
Chaos Awesome
above zero level.
Momentum above
zero level,
MA of RSI should
be crossing up,
the green +DMI
line crosses up through the red -DMI line.
Sell
3 SMA crosses
downward the middle band of Bollinger Bands,
Chaos Awesome
above zero level.
Momentum above
zero level,
MA of RSI should
be crossing up,
the green -DMI
line crosses down through the green +DMI line.
Make profit:
The Chaos Awesome
Oscillator turn color, the Momentum turn towards it's zero line,
the MA
of RSI lines will
cross, and theADX line will turn down.
You can make
profit also with ratio 1.2 stop loss. Place initial stop loss above
below the upper/lower bands.
In the picture
EUR/USD 5 min chart .This was an trading session where you could have
played the sell signals and buy signal for a 20-30 pip ride each
way.
Next picture,
EURUSD 10 min chart .
When the b 4 sma
crossed down below the 10 sma. When you did enter short, the
StochRSI was at it's low point, the MA of RSI had crossed down and
the RSI was below it's 50 level, the DMI had crossed with the red
line (D-> D+) crossing above the blue line, and the Ultimate
Oscillator had crossed down below it's 50 level.
In the picture above we
see as the Secret Weapone cath the big moves.
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