- Awesome Oscillator forex indicator or AO is very simple trading indicator. This indicator calculates the difference between the 5 days moving averages indicator and 34 days moving average indicator. The Awesome histogram indicator reflects the Forex market momentum of current period and previous period.
- Accelerator oscillator is one of Bill Williams indicators. This indicator can calculates the volatility of the Forex market price.
- Parabolic SAR or Parabolic Stop and Reverse technical trading indicator. This indicator is used to identify the stop loss level and also determine the market trend.
Even there are so many good Forex technical indicators that available in forex trading like: Arron up & down, Heiken ashi bar, Chaikin money flow indicator, Indicator Trading MACD divergence, Iinmarrows, MACD momentum indicator, Stochastic levels indicator, Three line break indicator trading, Chande Kroll Stop indicator, Parabolic SAR MACD, Gann hilo activator V2, Bollinger band signals indicator, Donchian channel indicator, 2 bar reversal indicator and etc, I still trust and use Awesome oscillator, Accelerator oscillator, and Parabolic SAR indicator. Because these three indicators already tested by many experienced Forex traders.
This indicator works on all Forex trading pairs such, GBPUSD, EURUSD, AUDUSD, USDCHF, USDJPY, GBPJPY, EURJPY, AUDJPY, USDCAD, and etc. But I recommended to choose Forex trading pair with small trading spread. Three indicators trading system is workable in all time frame, but I suggested to use bigger time frame trading chart, it is because you will find less false trading signals in bigger time frame chart than if you use lower time frame chart.
Awesome indicator trading system rules
You can open trading position when Awesome oscillator, Accelerator oscillator and Parabolic SAR Forex indicator have the same trading signal in one candlestick chart.
Buy trading rules for awesome indicator trading system
- Parabolic SAR indicator is below the market price
- Awesome oscillator indicator is green histogram
- Accelerator oscillator indicator is green histogram
Sell trading signal for awesome oscillator trading system
- Parabolic SAR indicator is above the market price
- Awesome oscillator indicator is red histogram
- Accelerator oscillator indicator is red histogram
Once we had three signals from Parabolic SAR, Accelerator, and Awesome oscillator indicator we open trading position in the direction of the trading signal.
On the trading example above we have EURUSD in H1 trading chart. Open trading position only after Awesome oscillator, Accelerator oscillator, and parabollic sar indicator give the same trading signal in one candlestick. If you only received 2 trading signals from 2 trading indicator, then you should wait for other trading signal from other indicator.
Exit trading rules
Actually, exit trading is the hardest portion in forex trading, many forex traders know how to entry the market but they do not know how to get out from the market. Exit from trading needs discipline and also skill. For experienced traders they usually analyze entry trading level and exit trading level before they get in the market.
The easiest exit method is risk and reward ratio, you can set your profit target and stop loss level at least 1:2 of risk and reward ratio.
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