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Daily Charts Forex Trading Strategy That Makes 100-500 Pips Per Trade

February 10th, 2011 No comments

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Trading on the daily charts is a much easier strategy as compared to trading intraday. This daily charts strategy can make you 100-500 pips per trade. You don’t need to sit in front of your computer for hours when trading with this daily charts strategy.

Let’s discuss this Daily Timeframe Strategy. This Daily Timeframe strategy uses only two indicators. This is Bill William’s Accelerator Oscillator (AC) and the Stochastic Oscillator. The Bill William’s Acceleration/Deceleration Indicator (AC) measures the acceleration and deceleration of the current driving force.

Bill Williams is famous for his application of Chaos Theory to Trading plus his concept of fractals. Bill Williams says that before price behavior changes, momentum changes and before momentum changes, there is acceleration and deceleration. Knowing acceleration/deceleration can give you an advanced warning. This oscillator does exactly that. But we don’t need to go into the theory as this daily charts strategy is simple and easy to implement.

Stochastic oscillator is another popular indicator that tells you about the overbought and oversold condition in the market. It has two lines, the %K and the %D. %D line is the moving average of %K. %K is shown as a solid line while %D is shown as a dotted line.

Open any daily chart on your MT4 Platform. Attach the AC Oscillator on the chart. Choose green color as the value up color and red color as the value down color. The choice of colors is not important. You can choose, your colors as long as you remember the value up color and the value down color. Choose the 5,3 and 3 settings for the Stochastic and attach it to the AC Oscillator. So, you will find both these oscillators superimposed on each other.

Now follow the following rules for a long and short trades. When the green AC and the Stochastic both are above zero, enter into a long trade. When both read AC and Stochastic are below zero, exit the long trade. When both red AC and the Stochastic are below zero, enter into a short trade and exit when both green AC and Stochastic are above zero. Use a stop of 100 pips above or below the short or long entry.

Practice this Daily Timeframe Strategy on your demo account and see how easily it can make hundreds of pips per trade for you. Once, you have practiced this Daily Timeframe Strategy and mastered it on your demo account, you can trade live with it. Good Luck!