Last month I wrote an article about one currency master trading setup. Now I want to share how to trade with it. We will be able to trade in different timeframes with different styles.
As I described in my earlier article we will need to follow three different charts: Daily, 4 Hour and 1 Hour. I made small changes so this setup will be better for trading.
DAILY CHART
ADX: 13 – will be signaling trend strength and weakness
MACD: 13- will signal momentum
EMA 23, EMA 89, EMA 144 – These are mainly for keeping an eye on trend and potential support resistance level.
4 HOURS CHART
RSI: 13 – will be used to check sell and buy zones, also overbought and oversold zones.
MACD: 13- will signal momentum and sell and buy zone.
EMA 23, EMA 89, EMA 144 – These are mainly for keeping an eye on trend and potential support resistance level.

1 HOURS CHART
Stochastic: 13 – Will be used for enter and exit signals.
MACD: 13- will signal momentum and sell and buy zone.
Volume - Standard
EMA 23, EMA 89, EMA 144 – These are mainly for keeping an eye on trend and potential support resistance level.

HUNTING THE OPPORTUNITY

We are huntin for opportunity first in Daily, then in 4H and then in 1H charts. We start watching MACD for divergence in a good trend on daily chart. If there is divergence in MACD and ADX is declining (both in up and downtrends) there is potential breakout and trend reversal coming.


In this example, we can see both breakdown from uptrend and breakout after downtrend. In both cases, MACD signaled it by divergence with the price. Moreover, in both cases ADX declined before price break the trend line.

TRADING THE OPPORTUNITY

To be able to open trade after trend change signal from MACD and ADX there should be perfect moment for enter. Price breaking the trend line does not always start a new trend. We have criteria for start to trade.
At the end of the uptrend:
  • Price must break the trend line
  • Price and 21 EMA must be below 144 EMA
At the end of the downtrend:
  • Price must break the trend line
  • Price and 21 EMA must be be above 144 EMA

If the criteria is met, we start looking for trade. As I mentioned earlier we can trade with master setup in different timeframes and different styles:
  1. TRADİNG ON DAİLY CHART
  2. TRADİNG ON 4 HOUR CHART
  3. TRADİNG ON HOURLY CHART
TRADİNG ON DAİLY CHART
Trading in daily chart needs more time and patience. Traders should use smaller contract than usual and longer stop losses.

At the end of the uptrend:
ENTER: Price broke the trend line and it is below 144 EMA together with 23 EMA.
For us to open sell order, MACD should be declining and ADX start rising. If it is so, we open sell and put stop loss above nearest resistance level.
EXIT: After opening sell we will hunt for another MACD divergence and ADX fall in support zones. If price failed to break support zone and then MACD shows divergence while ADX is falling and price breaks above resistance, then we exit the trade.
In example above our sell position would bring us 1800 points.

At the end of the downtrend:
ENTER: Price broke the trend line and is above 144 EMA together with 21 EMA.
For us to open buy order, MACD should be rising and ADX also start rising. If this happens we open buy and put stop loss below nearest support level.

EXIT: After entering the market we will hunt for MACD divergence and ADX losing strength and falling why price breaks the trendline or support and resistance level then we exit.
If we bought as it is shown in the chart above we would make at least 900 points.

NOTE: Of course we will use Stop loss and move to next support zones while price falls. We also close the trade whenever price breaks the trendline.

TRADING ON 4 HOURS CHART

When we hunted for opportunity on Daily chart and criteria is met then we shift to 4H Chart and trade in 4H chart. This needs less time to hold on you trade but still need patience.


Here our criteria would be:
At the downtrend:
  • Price and 21 EMA must be below 144 EMA
  • RSI must be in Sell zone below 50 line.
  • MACD have to start falling below 0 line.

ENTER: Price is in support level. MACD is falling. We put sell order.
EXIT: MACD shows divergence. RSI breaks 50 line above.

At the uptrend:
  • Price and 21 EMA must be be above 144 EMA
  • RSI must be in Buy zone above 50 line.
  • MACD have to start rising above buy zone above 0 line.

ENTER: Price is in support level. MACD is rising. We put buy order.
EXIT: MACD shows divergence. RSI breaks 50 line below.

If we traded as in the 4H chart above we would make 200 points on first and 600 points on second sell.

Note: Of course we will use SL and move to next support zones while price falls. We also close the trade whenever price breaks the trendline.


TRADING ON 1 HOUR CHART
If you want to trade in short terms then this will be best for you. After criteria is fulfilled in daily and 4h chart we move to 1H chart and look for enter and exit points.

Criteria for trading in 1H Chart:

At the downtrend:
  • Price and 21 EMA must be below 144 EMA
  • Stochastic must be above 50 line and declining
  • There should be high volumes.

ENTER: Price broke the support of trendline or flags. Stochastic is falling.
EXIT: Price is in support level or close to trendline. Volume is rising. Stochastics is rising above 20 line.

At the uptrend:
  • Price and 21 EMA must be be above 144 EMA
  • Stochastic must be below 50 line and rising
  • There should be high volumes

ENTER: Price broke the support of trendline or flags. Stochastic is rising .
EXIT: Price is in support level or close to trendline. Volume is rising. Stochastics is falling below 20 line.
We could make in the 1H chart above on 1st trade- 480 points, 2nd trade-50 and 3rd trade 200 points.

Note: Of course we will use SL and move to next support zones while price falls. We also close the trade whenever price breaks the trendline.

Here is the article about trading the One currency master setup. I decided not to show buying in 4H and 1H charts to keep the article short.

I would like traders in Dukascopy try this method and share their opinion. Of course this is not 100% Correct but it may give you 60-70% correct signals if you will stick to the rules. Please try this method, modify and share your results with us.
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