EURUSD - Daily Chart very simple "trend following strategy". . This is a very simple, yet very effective trend following strategy.
1. Display price using Heiken Ashi candlestick. (Removes a lot of the noise and allows to see smoother movement).
2. Trading daily charts allows less whipsaw movement and much cleaner entry/exits.
3. Confirm if trend is UP, DOWN or SIDEWAYS.
Entry Signal is:
1. Medium to Large HA candle changes from Green to Red, or vice versa shooting up/dn through the 8-WMA & 14-MA.
2. The candle MUST breech both moving average lines to validate entry long or short.
3. Enter trade Long/Short on close of that candle.
4. RSI 90% of time will be in Overbought or Oversold area when candle breech trigger occurs. (further validating entry)
5. Typically the large HA candle that breeches the two moving average lines will NOT have a wick below it.
* Avoid entering during times of consolidation, characterized by mix of red/green HA candles with wicks on both sides.
* Look for entries after touch of support or resistance areas.
* Trade becomes invalid AFTER ENTRY if at any time a candlestick changes color and shoots up or down in the
opposite direction crossing BOTH of the 8/14 moving average lines.
