Wave Rider Forex Trading Strategy is an effective short term trading strategy to trade any forex currency pair.
The currency pairs don’t generally move at a straight line, they create highs and lows and different (uptrend, downtrend, and sideways) type of movements at different time frames or as the session changes or major fundamental events happens at the related currency.
This strategy is based on some different valued Moving Average indicator and a custom made indicator named binary arrow.
The Moving average indicator values are 21, 50, 100, and 200 used in this strategy them makes waves around the price candles to identify the current trend at which the price moves for a certain period.
When all the Moving Average lines remind below the price candles so the price movement is at an uptrend and when all the Moving average lines are crossed or remain above the price candles means the asset price is falling.
The binary arrow used in this trading method simply identifies the highs and lows created by the price movement and makes different colored arrows below and above the price candles.
This indicator creates an Aqua-colored arrow below the price candle after a valid lower low which can be marked as the bearish phase may over for the asset price and a red arrow above the price candle as a confirmation of a valid higher high.
The idea is very simple of this trading method, enter buy order when an Aqua arrow is seen below the price candle and the Moving average lines are below the price candles and enter sell order when a red arrow is seen above the price candle and the MA wave remains above the price candles.
As this strategy is for sort-term time frames checking the higher time frame charts is highly recommended to find out the actual valid direction of the price and to eliminate the fake highs and lows.
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