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EUR/USD Long Entry Using the Awesome Oscillator and EMA8

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Summary

The strategy proposes a long entry when price crosses above an eight-period exponential moving average while the Awesome Oscillator turns upward after declining. The oscillator is defined as the difference between five-period and 34-period averages of median price. It pairs the entry with a 0.75% stop loss and a 1.5% profit target.

The author reports a quick backtest that appeared effective only for long trades on EUR/USD at the four-hour interval, while finding the approach otherwise not very profitable. No test period, sample size, transaction costs, benchmark, or detailed performance statistics are supplied, and the reported result is preliminary. The post presents a simple rule for further investigation rather than evidence of a robust or broadly applicable forex strategy.

Key ideas

  • A long signal requires a close above EMA8 and an upward turn in the Awesome Oscillator.
  • The oscillator uses the difference between short and longer averages of median price.
  • The example sets a percentage stop loss and a larger percentage profit target.
  • The author reports limited preliminary success on EUR/USD four-hour long trades only.
  • The post gives no detailed performance data or evidence of robustness.

Tags

ForexTechnical indicatorsMomentumBacktestingRisk management

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.