Strategy “Midnight”

Strategy “Midnight”

Recommended timeframes D1

The strategy, which we are going to describe below, is fairly simple and, above all things, amazingly safe. Although the use of this strategy will not bring you overwhelming wealth, it will minimize your risks and  bring you not great, but steady income. The strategy is based on the use of two simple indicators, which are installed in all standard terminals MT4. This strategy can be applied to all major currency pair, such as EUR/USD, GBP/USD, AUD/USD, CAD/USD, NZD/USD and USD/JPY. A daily interval D1 is used as a temporary interval.

The applicable indicators:

• The Exponential Moving Average (period 24, the rest are of the default settings)

• The Average Directional Movement Index (default settings)

Conditions for concluding a Buy transaction: 

• A tail of the candlestick, which closes from the bottom, is three times the size of the candlestick body (as a rule, the body of the candlestick is either very small or it does not exist at all); while the upper tail  is no more than half of the bottom tail.  

• The main line of the indicator ADX is above the level 20.

• The line +DI (red on the chart) is above the line –DI (blue on the chart) and above the level 20.

• The line –DI is below the level 20.

• Buy transaction can be concluded at the opening of a new daily candlestick.  

Conditions for concluding a Sell transaction: 

• A tail of the candlestick, which closes from the top, is three times the size of the candlestick body (as a rule, the body of the candlestick is either very small or it does not exist at all); while the lower tail is no more than half of the upper tail.  

• The main line of the indicator ADX is above the level 20.

• The line -DI (blue on the chart) is above the line +DI (red on the chart) and above the level 20.

• The line +DI is below the level 20.

• Sell transaction can be concluded at the opening of a new daily candlestick.Conditions for closing of the transactions.

• Stop-loss for the Buy order is set at the lows of the previous candlestick. Stop-loss for the Sell orders is set at the highs of the previous candlestick.

• Regardless the results of the transaction, it shall be closed at the close of the daily candlestick, at the opening of which the entry to the market took place.

• There is option to lock in profit by using a setting take profit at a distance, two time exceeding stop-loss; however it option is not recommended, due to the increasing risks.