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Strategy AD-Splash H1 is a universal trading strategy that can be applied to any actives in the Forex market. It is intended for trading on the H1 period. This strategy is implemented using the Accelerator_Decelerator indicator.
You can find and download this indicator for FREE in the Indicators section of our website.
AD-Splash H1 uses the values of the specified indicator to enter positions.
Adjust the chart so that as many candles as possible are visible on it. Then draw the Accelerator_Decelerator indicator on the chart. This indicator does not have any input parameters and does not require adjustment.
Conditions for opening long positions
A long position opens when the indicator bar, after a series of closures below zero, closes in the positive zone.
Conditions for opening short positions
A long position opens when the indicator bar, after a series of closures above zero, closes in the negative zone.
Stoploss and TakeProfit
An important component of the success of this strategy is the correctly calculated sizes of stop-loss and take-profit.
Consider the example of opening a short position, the calculation of take-profit and stop-loss.
Stoploss should be calculated as half the distance that the price has passed during the formation of the bars, a series of which formed a new extremum. The distance from the beginning to the end of the price movement in this interval will be the initial value for calculating the values.
In the given example, after the splash extremum has formed, we can calculate that the formation of the first bar of this extremum began at the level of 1.00446 and ended at the level of 1.01109. Thus, the price for this period has passed 663 points. Dividing this value by 2, we get the stop loss value.
TakeProfit is 4 times the stoploss distance.
Conclusion
AD-Splash H1, despite its apparent simplicity, can be a pretty lucrative strategy. Observing its nuances, you can achieve good results. Narrow the width of chart candles to a minimum so that as many candles as possible are visualized on the chart. This will help you avoid a large number of false signals, and you will more accurately see the real extremes of the indicator and prices.
