Highly Profitable Strategy
Acceleration Oscillator (accel oscillator, acceleration/deceleration oscillator)
PSAR is on the bottom
Acceleration Oscillator is green
Candle is green
Opening price of candle is above moving average
PSAR is on the top
Acceleration Oscillator is red
Candle is red
Opening price of candle is below moving average
Note: Use to determine if is expanding. I personally use the weighted average with a length of 8 and only submit a trade (long or short)
if the reads above 40. DO NOT trade on ranges, this will destroy your account. Use any indicator you like to determine if the market is trending or not.
I use a trailing stop to exit all trades. I find the sum of the differences between opening and closing price (+ or - candles) of the previous 4 candles and
then divide by 12 and use that number as my trailing stop in pips.
I usually use this setup on a day chart. I make sure all criteria for a trade is met on the day chart and then i go to the 15 minute chart and make sure the same
criteria is met as well. I have not tested this method with shorter term charts but plan on doing so soon. I will also begin testing this setup with heikin ashi candles. Will update soon.