In the ever-evolving world of trading, having a reliable strategy can make all the difference between success and failure. Imagine having a strategy that combines the wisdom of two powerful tools, confidently guiding you towards profitable trades. Enter the world of the Double Relative Vigor Index (RVI) strategy – a game-changer for traders seeking an edge in dynamic markets.

In this article, we will embark on a journey to unlock the secrets of this strategy, empowering you to make informed decisions and seize opportunities like never before. By utilizing two RVI indicators with different time periods, this strategy aims to identify trends and generate accurate trigger signals for profitable trades.

The Double RVI Strategy:

The Double RVI strategy combines the power of two RVI indicators: a longer-term period (55) and a shorter-term period (10). The longer-term RVI helps determine the overall trend, while the shorter-term RVI acts as a trigger signal for trade entries.

The first step in this strategy is to assess the longer-term trend using the 55 RVI. We watch for crossovers of the RVI lines and the 0 level (as seen on the chart). A bullish crossover alone on this longer-term (55) RVI is not enough to verify the trend as bullish or bearish. By considering the RVI’s position relative to the 0 level, we can distinguish between true trend reversals and mere corrections within the prevailing trend.

So, a trend is considered bullish when the 55-period RVI has made a bullish crossover and is above the 0 line. Conversely, the trend is bearish when the RVI lines have bearishly crossed over, and the RVI value is below the 0 line.

Utilizing the Shorter-Term RVI as a Trigger Indicator

Once the longer-term trend is established, the 10 RVI comes into play as a trigger signal. Focus solely on crossovers of the 10 RVI. There is no need to watch the 0 line or wait for the fast (10-period) RVI to cross it.

Only trades that align with the direction of the longer-term trend are executed, which should help to maximize the probability of success. As noted above, we identify the longer-term trend with the 55-period RVI with the rules as described.

Wrap Up

Indicators:

• 55-period Relative Vigor Index (RVI) for longer-term trend identification (colored light green and yellow)
• 10-period RVI for shorter-term trigger signals (colored dark green and red)

Timeframes:

• 4H and lower

Rules:

Determine the longer-term trend using the 55 RVI:

• Watch for crossovers of the RVI lines.
• Verify that the RVI is above the 0 level.
• Consider the trend bullish if both conditions are met.
• If a bearish crossover occurs, but the RVI value stays above 0, consider it a correction within the bullish trend.

Use the shorter-term 10 RVI as a trigger signal:

• Watch for crossovers of the 10 RVI.
• Only take trades in the direction of the longer-term trend identified by the 55 RVI.
• Consider the 10 RVI crossover in the same direction as the 55 RVI as a valid trigger for a trade.

The Double RVI strategy presents traders with a powerful approach to identifying trends and generating precise trigger signals. By combining two RVI indicators with different time periods, traders can better understand market dynamics.

Trends are the lifeblood of profitable trading, but navigating them can often be challenging. That’s where the Awesome Oscillator comes into play. With its unique ability to visualize the momentum behind price movements, this indicator provides a clear and intuitive way to identify and confirm trends precisely.

As the name implies, this strategy is mainly based on the Williams Awesome oscillator. The method is simple: we want to trade the signal (color) the Awesome oscillator shows. However, to maximize the accuracy of signals, we will only trade the signals of the Awesome Oscillator in the direction of the already established trend.

What is the already established trend?

To identify that, we use a 55-period moving average. This comes with a twist as we adjust the shift period forward to 21.

This 55-period moving average is now the indicator of the main trend. When the price is above it, the trend is bullish. When the price is below it, the trend is bearish.

Let’s now look at a chart example.

As you can see, the price is above the 55 moving average. Thus, we look to trade only green bars on the Awesome oscillator. As long as the price stays above the moving average, all green bars from the Awesome oscillator are valid entry points for long trades.

When the Awesome oscillator turns red, it’s time to exit the trade. As soon as it turns back green again and the price is above the 55 SMA, we should re-enter long.

For bearish setups, it’s exactly the opposite.

Indicators used for the Streamlining Trend Trading strategy:

• 55-period simple moving average, shift forward 21 periods
• Bill Williams Awesome oscillator

Welcome to "The Divergent Reversals" trading strategy.

In this guide, we will explore a powerful approach that combines the potential of divergence trading with the robustness of the Money Flow Index (MFI) indicator. By understanding and implementing this strategy, you'll be equipped with a valuable tool to identify trend reversals and seize profitable trading opportunities.

Divergence trading is a technique that focuses on the relationship between price action and the oscillator. Within the realm of divergence trading, the Money Flow Index (MFI) stands out as a reliable indicator for evaluating the strength of buying and selling pressure in the market. By incorporating the MFI into our strategy, we can effectively validate trend reversals and time our entries and exits more accurately.

In addition, we plot a 12-period smoothed moving average with shift 5. This SMA will give us the trigger signals for a trend reversal. You will find that this 12-period SMA will often act as a support and resistance within a trend. Thus, we use it as an entry signal on a breakout.

Below, we show a chart of a bearish setup on the 4-hour timeframe of Brent oil.

As you can see, the parameters of the Divergent Reversals strategy accurately identified the new bearish swing down. The exit signal is generated when the price crosses the 12-period SMA again in the other direction.

The settings for the Money Flow Index are slightly changed for this strategy. Instead of the standard 14, we use a period of 30. This gives smoother movements on the indicator and more reliable divergence signals.

The 12-period SMA can also be used for the initial placement of the stop loss. The most recent swing high/low around the SMA can be used as a precise level.

Wrap up

The Money Flow Index (MFI) is a volume-based indicator that incorporates volume data into its calculations. As a result, it shines brightest when applied to assets that have volume data available, such as commodities or stocks. On the other hand, the Forex market lacks reliable volume data, which can limit the MFI's effectiveness (although you can still absolutely use it).

The Divergent Reversals strategy indicators:

    * 12-period smoothed moving average, shift 5 periods forward

    * MFI oscillator – period 30

In this new edition of our trading strategy series, we will explore how you can utilize an EMA-based trend indicator and the Parabolic SAR to develop a successful trading strategy. We will delve into the basic concepts behind each indicator and how to effectively combine them to generate accurate trading signals that you can use to improve your trading results.

The active and dynamic financial markets are constantly providing opportunities to profit from the day-to-day moves and volatility. One interesting combination is the exponential moving average (EMA) and the Parabolic SAR (PSAR) indicator. This powerful combination can help traders make informed decisions on when to enter and exit trades, leading to very reliable results.

A SMART method for trading the markets

The SMART Dolphin strategy is a smooth way to trade the markets and catch the main directional movement. SMART, in this case, stands for Specific, Measurable, Actionable, Risk Management, and Tactical. The SMART Dolphin strategy helps us do all of those things, which is why it is a very practical approach to trading.

We are using a special exponential moving average (EMA) setting as the base for determining the overall direction. The Parabolic SAR gives us the entry points and our stop loss. At the same time, the stop loss is the exit strategy since the PSAR indicator provides trailing stops.

The key to the exponential moving average in the SMART Dolphin strategy is its special settings (period 55 with shift 8) and the additional details we examine when considering a trade. To help with this, we plot the Bulls Power and Bears Power indicators, which will give us a better scan of the underlying trend, almost like an x-ray.

The Bulls Power and Bears Power are similar indicators that show the momentum of the bulls and the bears separately. Thus they are two graphs, as shown in the chart below. You can find these in the MT4 platform (they are installed by default).

As for the 55-period EMA, it is our main trend indicator. When the price trades above it, we consider the bulls are in control, and the trend is up. When the price is below the 55-period EMA, bears control that market (the trend is down).

You will notice that most of the time, the Bulls Power and Bears Power indicators will confirm the same trend as the EMA. But not always. In some instances, one of them will switch the trend while the other will remain unchanged. This is an indication that the trend change is potentially fake. Wait for both the Bears and Bulls Power indicators to switch the trend.

Once we have the trend confirmed across all three measures, we then look for the Parabolic SAR to give a trigger in the same direction. That means the PSAR should start plotting dots below the candle bars during uptrends. In downtrends, it will simply be the opposite. The PSAR dots then serve as our stop loss levels.

Indicators used for the strategy:

    * Exponential moving average (EMA) - period 55, shift 8

    * Bulls Power – period 55

    * Bears Power – period 55

    * Parabolic SAR

The SMART Dolphin strategy works across all timeframes and asset classes. That means you can freely use it in all your trading without limits.

In the dynamic world of forex trading, having a robust and reliable strategy is essential for consistent success. Among the many technical indicators available to traders, the DeMarker Indicator stands out as a powerful tool for analyzing market turnaround points and generating trading signals.

In this article, we will delve into the specifics of a tactical trading strategy based on the methods of famed trader and technical analysis innovator Tom DeMark. Whether you’re a seasoned trader or just starting your trading journey, this strategy based on the DeMarker indicator will help you to stay ahead in the markets.

The DeMark formula to tackle the day-to-day market

We call this strategy Rhythmic Trends because it is based on just that – trends that are in rhythm. We use DeMark trendlines and the DeMarker oscillator to help us find potential entries. For additional verification, we plot a 21-period and 8-period smoothed moving averages to show us the market's general direction.

This method aims to look for either too low or too high readings on the DeMarker oscillator. Basically, the DeMarker works like many other technical oscillators. It oscillates between 0 and 1, with the 0.3 and 0.7 levels being particularly important. We look for buy setups when the DeMarker indicator is near 0.3 and for sell setups when the DeMarker is near or above 0.7.

For a buy or sell setup to exist, it must be backed up by an existing trendline. In cases of bullish setups, we need a support trendline sloping upwards (or horizontal). In the case of short entries, we need resistance trendlines that are sloping downward. When the price comes close to testing the trendline again, we look for readings indicating extremes on the DeMarker oscillator (either close to 0.3 or 0.7).

A buy or sell signal is generated when the trendline is confirmed. In the case of bullish setups, the price should bounce at the trendline when the DeMarker is around 0.3. For bearish setups, look for a rejection at the trendline and a reading of around 0.7 on the DeMarker oscillator.

Additionally**, the 8 and 21 moving averages should confirm the trade signal.** For buy trades, they should be in a bullish crossover (8 above 21). And for sell trades, the moving averages should be in a bearish crossover (8 below 21, indicating a bearish trend).

Putting the rhythmic trends strategy to work

It’s worth noting that the Rhythmic trends strategy is best suited for markets that are trending in an orderly way. That is, strong trends without any retracements won’t generate many signals with this strategy. On the other hand, orderly trends provide regular retracements of around 38.2% to 50%, allowing many entry points along the way.

Stock indices like S&P 500, DAX, or NASDAQ, as well as major currency pairs (Forex) like EURUSD, AUDUSD, and GBPUSD, are some instruments where orderly trends are common. It’s also best to stick with the daily or lower timeframes when trading this Rhythmic Trends strategy based on the DeMarker indicator.

Indicators used:

    * DeMarker oscillator (turquoise line at the bottom of the chart)

    * 8 smoothed MA (light brown line)

    * 21 smoothed MA (light blue line)

We are delighted to present another easy-to-use, straightforward trading strategy in today’s edition of our trading strategies posts.

“Following the herd” is a trend-trading strategy that we trust you will find effortless to implement. You can use it on any timeframe and any trading asset or instrument. It’s worth noting that it tends to work well on trending assets like stock indices and some commodities. Trending currency pairs like GBPJPY, GBPAUD, or EURNZD will also work well.

Indicators used:

    * Heikin Ashi

    * Smoothed moving averages (SMA) with periods: 13, 21, 34, 55, 89, 144, 233

The goal is to use the moving average lines to fully confirm the long-term trend in the market. We employ a set of seven smoothed moving averages with a calculation period of 13, 21, 34, 55, 89, 144, and 233. On the chart below, we have colored the smaller (shorter-term) moving averages in blue gradients while the larger (longer-term) moving averages in purple/violet gradients.

As you can notice, the moving averages range from very short-term to very long-term. So, with this strategy, we don’t look to catch either the short-term or long-term trends but rather look to trade only on the side of the confirmed predominant market direction.

The seven moving averages indicate a confirmed market trend when they are all aligned in order – from smallest to largest – and are visibly separated from each other. The trade examples below depict such situations.

Once all seven moving averages have aligned and nicely separated, we look at the Heikin Ashi candles. As you probably know, the Heikin Ashi are a special calculation for the candlesticks, but they do not represent the actual open and closing prices (though they are very similar).

We look for the candle to make a retracement toward the group of seven moving averages. Once the candles enter the area of the moving averages, we look for a bullish Heikin Ashi candle during uptrends or a bearish Heikin Ashi candle during downtrends. This is our entry signal.

The exit signal is when the Heikin Ashi candles print a candle in the opposite direction. So, if the Heikin Ashi prints a red bar during the bullish swings, it is a signal to exit the trade. Likewise, if we see a green candle during downtrends, it is time to exit the position.

The stop loss can be placed behind the 55-period moving average. This is the exact middle line (in trending situations when all seven moving averages are aligned in order).

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In this post, we are excited to unveil an easy-to-implement trend trading strategy that will seamlessly fit into your trading toolkit. With minimal room for interpretation, this approach offers clear-cut guidance for tackling any trading scenario. Get ready to level up your game!

As you may tell from the title, this strategy is based on the principles of legendary trader and inventor Bill Williams. For this effective trading method, we use a combination of Williams’ indicators to achieve accurate trend detection and timing of our entries.

The main indicator for this swing trading system is the famed Alligator. It is made of three lines that hover near the candlestick price bars that look much like moving averages. Indeed, those lines are a special calculation of standard moving averages.

The other two indicators we use are Williams Awesome and Accelerator oscillators. These are plotted at the bottom of the chart. Not only do they look similar, but they, in fact, have the same foundation. With this strategy, we use those two oscillator indicators to confirm our entry signals and give us early indications of when we should exit a trade. Some trade examples are shown in the chart below:

    3. The Alligator shows us the trend in the market. When the price trades above all three lines, the trend is bullish. Conversely, the trend is bearish when the market is below the Alligator indicator. The alignment of the lines is important too. All three should be aligned to indicate that a healthy trend exists. This is the first condition for a trade.

    6. Once we have the Alligator nicely aligned in a trending mode, we look for the price to retrace toward the long-term line of the Alligator (turquoise on the chart). Then look for a bounce (during bull trends) or rejection (during bear trends) near the lines.

    9. When the price is near the turquoise of the Alligator, we use the Awesome and Accelerator oscillators to give the entry signal. In a bull trend, the Awesome oscillator should print a green bar. The Accelerator oscillator gives earlier signals. It will tend to print green bars before the Awesome oscillator does. In most cases, it’s best to have both oscillators print a green bar. This is the optimal signal for an entry.

    12. The stop loss is placed behind the Alligator’s turquoise line.

    15. We exit the trade when the Awesome oscillator reverses its color (if it turns red during uptrends or green during downtrends).

Remember, practice makes perfect, so make sure to apply it in your trading and adapt it to your own style.

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Are you trading gold? If so, keep reading, as today we will share with you a strategy you can use for trading gold and silver. As a bonus, this strategy also works well for currencies, so FX traders are also in luck.

So, take a seat, and get ready to learn an effortless system that will boost your trading performance. Let’s dive in!

The SWIFT Scalping System

The following trading strategy is most effective on the 5-minute chart. The idea with the SWIFT system is that we can make fast profits from the various market swings that constantly happen in the gold market. It is a 3-step system, making it very easy and swift to use in your trading.

The 1st condition is defined by the Gann Hilo Histo indicator, plotted at the bottom of the chart below the candle bars. It shows whether the market forces are predominantly bullish or bearish.

DOWNLOAD THE GANN INDICATOR FOR FREE HERE

Then we use two smoothed moving averages – 5-period and 13-period – to give our entries and exits. Basically, we look for the moving averages to make a crossover in the same trend direction that the Gann Hilo Histo indicator is already showing. This is the 2nd condition.

The 3rd condition is very important. We don’t trade the first crossover of the moving averages. Instead, we wait for a pullback and then look to trade the next crossover of the MA lines in the direction of the trend (as shown by the Gann indicator). Sometimes the price may just touch the two moving averages and rebound quickly, or another crossover in the trend direction may occur. These are both valid entry signals as long as the trend on the Gann Hilo Histo indicator remains unchanged. Several trade examples are shown in the chart below.

The exit signal is when the moving averages cross over in the opposite direction of the trend. This marks the end of the upswing or downswing that we rode with our trade. After we exit a trade, we then wait for the next signal. If the moving averages cross over again in the trend direction, then we can take another trade (as shown on the chart).

We can keep trading the dominant trend like this as long as the Gann and moving averages stay aligned. Sometimes you will be able to ride 5 or 6 swings like this, though most often, it will be 2 or 3.

And that’s basically the gist of it. We hope you like the SWIFT trading strategy. As a reminder, the parameters and indicators for the following:

    * Timeframe: 5-minute

    * Gann Hilo Histo indicator

    * 5 period smoothed MA (sea-green line)

    * 13 period smoothed MA (yellow line)

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The Stochastic indicator has long been a popular tool for finding and executing various trade setups. Most commonly, traders use Stochastic to determine overbought and oversold conditions in the market.

However, today we will show you a trading strategy that uses Stochastic rather atypically. As you may be able to guess from the title, we are using two Stochastic oscillators for this strategy. One is a fast Stochastic, and the other is a slow Stochastic.

The result? A robust trading strategy to use on your intraday charts up to the 1H timeframe. It can be used as a swing strategy, given that some trades can be held for more than a day. However, most trades will be of a shorter-term duration.

The goal is to use the slow Stochastic to pick potential trades and the fast Stochastic for trigger signals of those trade setups.

Settings for the dual Stochastic:

    * Slow Stochastic – 34, 21, 89

    * Fast Stochastic – 5,3,3

We add the RSI under the two Stochastic oscillators as an additional filter layer. The purpose of the RSI is to provide additional confirmation of the trend momentum. Thus, we look for the RSI to be above 50 in bullish setups and below 50 in bearish setups.

    * RSI settings: 89 period

Rules for the strategy:

    3. As you can see in the chart above, the slow Stochastic (34, 21, 89) is our scanner for trade opportunities. It defines the first condition of this strategy. The Slow Stochastic can be bullish or bearish at any given moment. Next, we look for a signal in the same direction on the Fast Stochastic (see below).

    6. The RSI should then be aligned with the Slow Stochastic. In bullish setups, the RSI needs to be above 50. In bearish setups, we look for an RSI reading below 50.

    9. Look for the classic bullish or bearish signal on the Fast Stochastic. That is a bullish crossover from the oversold area or a bearish crossover from inside the overbought territory.

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Today, we have another scalping strategy in store that you can apply on the 5-minute and 1-minute charts. The markets constantly provide trading opportunities; anyone who has ever opened a trading platform knows that prices move by the second! With scalping, we can catch more of those moves more often, meaning our efforts are well worth it.

The good thing about our scalping strategies is that many of them can be automated. Scalping should be simple and well-defined by a strategy’s rules. The simpler and cleaner our scalping strategies, the better results they tend to give.

This strategy works well in commodity markets but will also work well in Forex and indices.

Strategy indicators:

    * Bollinger bands – standard settings, period 20, standard deviation 2; default moving average removed as it is not needed

    * Shifted moving average – period 3, shift 3

    * Williams Fractals

The Claw Starts with the Compression of the Bands

The Scalping Claw strategy starts with the Bollinger Band indicator. A well-known and traditional tool in technical analysis, Bollinger Bands can be used in many ways. In our case, we only need the two standard deviation lines. We don’t need the simple moving average line in the middle, so we have removed it.

First, we look for compression of the Bollinger Bands. Since this is a 5-minute or 1-minute timeframe, periods of low volatility will happen quite often. This will be indicated by notable compression of the bands and is the first condition of this strategy (see chart below).

Next, we look at the Williams Fractals indicator. This one will plot useful bull and bear arrows on the chart to help trigger our trade entries.

In bullish cases, we need to look for a breakout above the upward-pointing arrow of the Fractals indicator. This will confirm a bullish breakout of the compressed Bollinger range. This is the trigger signal for a long trade.

In bearish cases, it’s the opposite. We are watching the down-pointing arrows of the Fractals indicator. A break of the price below this arrow is the trigger for a short trade. The Bands will expand as the price breaks out of the range.

Finally, instead of the moving average that is often plotted as part of the Bollinger Bands indicator, here we use a shifted moving average with a period of 3 and a chart shirt of the bars (blue line on the image above). We use this MA line for the stop loss and our exit strategy. In bullish cases, the exit is when the price closes below this moving average. In bearish cases, it’s the opposite.

A final point worth keeping in mind is don’t trade around big news releases. This is a scalping strategy, so most moves on the 5-minute chart are 5-10 pips at most. But a big news report can cause a giant 50-60 candle on the 5-minute chart. Such situations distort the chart and the potential trade setups. So we need to start over in such cases. Look for the next compression of the Bollinger Bands as the first sign that a potential trade could soon exist.

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