Key Components of OzFX Trading Strategy

• Daily Time Range
• Any currency pair can be used
• Need for Stochastic Oscillator and Accelerated Oscillator (AC) technical indicators

How to trade stochastic indicators

As a trader, you will always explore the emergence of new trends, and one of the best ways to do this is through the Stochastic Oscillator。It consists of two lines: the red line and the green line。

The red line is the signal line, while the green line tracks the price movement, and the two lines range from 0 to 100。Then, there are two additional points, 20% and 80%, showing overbought and oversold areas, respectively。

A sell signal is triggered when the green line touches or exceeds the 80% barrier and crosses the red line。After crossing, the green line should be lower than the red line。

When the green line exceeds 20% and crosses the red line, a buy signal is triggered。After crossing, the green line should be higher than the red line。

How to read AC

The indicator consists of two scales: positive and negative。The middle line of the oscillating indicator is the zero point, which separates the negative area from the positive area。If the histogram passes through it and moves down, a sell signal is triggered。On the other hand, if the histogram crosses the zero mark and moves up, a buy signal is triggered。

OzFX Trading Rules

The main indicator of the entry point is AC, using a random indicator to identify any false entries that may appear as real entries outside the equation。

If the stochastic indicator sends you a buy signal and the AC green line also enters a positive area, you can safely enter the market and go long。

If the stochastic gives you a sell signal and the AC green line also enters the negative area, you can safely enter the market to short。

Once the entry point is determined, you can open five instead of one, specifying a stop loss of 100 points per hand。The take profit shall be arranged in the following order:

• Trade 5 lots, stop loss 100 points。
• First hand trades to profit at 50 pips and now moves stop loss to break even (BE)。
• The second hand made a profit of 100 points。
• Make a profit of 150 points on the third hand。
• The fourth hand made a profit of 200 points。
• Allow the fifth batch to run until you see the opposite entry signal。

The key to Forex trading advice here is that when the first order reaches a take profit, the other orders must be transferred to the "break-even" point。Failure to do so disrupts the fundamentals of OzFX's strategy and negatively impacts other potential profits。