Forex Trading Strategy with Bill Williams Accelerator Oscillator

21 January 2016, 16:47
Abdul Salam
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Forex Trading Strategy with Bill Williams Accelerator Oscillator

There are a great number of forex trading strategies to be applied on daily timeframe.
With such forex trading strategies we can spend less time for trading and to have possibilities for great number of pips as profit.

Of course we have to remember that with this kind of trading systems the stress from trading is much more less.
We can use this strategy with any currency pair.

The forex trading strategy contains the following indicators :



  • Bill William’s Accelerator Oscillator (AC)
  • Stochastic Oscillator (5, 3, 3)

Trading Set Up


On daily timeframe attach Bill William’s Accelerator Oscillator and after Stochastic Oscillator on top of AC.
At this point is useful a short description for this two indicators.

Bill William’s Accelerator Oscillator (AC)


The Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force. This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price.

If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.

Stochastic


The Stochastic Oscillator Technical Indicator compares where a price closed relative to its price range over a given time period. The Stochastic Oscillator is displayed as two lines. The main line is called %K. The second line,called %D, is a Moving Average of %K.
The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line

Buy Rules


We will enter in the forex market with a buy order when :

Green AC is above zero (0) level.
Stochastic Oscillator is above zero (0) level.

Stop Loss


We have to use a wide stop loss level. It should be place at least 100 pips below the entry point.

Take Profit


We will close the trading order when AC falls below zero (0) level.
Stochastic is below zero (0) level.

Sell Rules


Red AC is below zero (0) level.
Stochastic is below zero (0) level.

Stop loss


We have to use a wide stop loss level. It should be place at least 100 pips above the entry point.

Take Profit


We will close the trading order when AC rises above zero (0) level.
Stochastic is above zero (0) level.

Important : All investors should know that any forex trading strategy before implementing in a real account needs to be tested in a demo account in order to be fully understood.

Also, all traders should be aware that extraordinary events occurring in the forex market very often, and is likely to alter the financial results of a forex trading strategy.
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