Forex Swing Trading Strategy: Equidistant Channel, Heikin Ashi and Stochastic on 30-Minute Charts

Updated: Aug 30

If you don't have much time to do scalping or day trading, you can opt for swing trading.


I don't suggest use of this trading strategy on any time frame (TF) lower than the 30-minute chart due to a lot of noise in those TFs. It is also better to do a top-down trend analysis (week to day to 4 hour charts) to get a good grasp of market price direction.


This swing trading strategy using equidistant channel can be used for any forex pair. Preferably look for a forex pair that has well-defined swing points.


Using Heikin Ashi Candles offers us better images in identifying those swing points.

Time Frame


30-minute charts or higher



Indicators and Tools


  • Heikin Ashi candles

  • Stochastic. Overlay two stochastic settings (8, 3, 3) and (21, 9, 9). Change the colors of each stochastic.

  • Equidistant channel



Buy Set Up


1. Scan different forex pairs. Look for chart patterns that have clear higher highs and higher lows (uptrend).

2. After spotting a good chart pattern, draw your equidistant channel. A good rule of the thumb is to look for at least two touches before drawing your equidistant channel. Then enter a trade on the third touch.

3. Wait for the price to come to your channel.

4. Look at your two stochastic settings. Pay attention to the oversold level (20). Both stochastics 8,3,3 and 21,9,9 should be below this level.

5. If all these criteria are met, place a buy order.

6. Set your stop loss at 15 pips. Put your trade to breakeven once your profit is 15 pips. Your risk-reward ratio should at least be 1:1.


FOREX SWING TRADING STRATEGY: HEIKIN ASHI, EQUIDISTANT CHANNEL, STOCHASTIC

Sell Set Up


1. Scan different forex pairs. Look for chart patterns that have clear lower highs and lower lows (downtrend)..

2. After spotting a good chart pattern, draw your equidistant channel. A good rule of the thumb is to look for at least two touches before drawing your equidistant channel. Then enter a trade on the third touch.

3. Wait for the price to come to your channel.

4. Look at your two stochastic settings. Pay attention to the overbought level (80). Both stochastics 8,3,3 and 21,9,9 should be above this level.

5. If all these criteria are met, place a sell order.

6. Set your stop loss at 15 pips. Put your trade to breakeven once your profit is 15 pips. Your risk-reward ratio should at least be 1:1.


FOREX SWING TRADING STRATEGY: HEIKIN ASHI, EQUIDISTANT CHANNEL, STOCHASTIC

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Important Forex Swing Trading Tips:

  • Never get tired of using a demo trading account until you master a strategy.

  • Stick to your stop loss and take profit parameters. Never adjust your stop loss even if you think the market will reverse soon.

  • Never risk more than 2% of your account per trade. Less risk is always better.

  • Always remember what professional traders say, "Only trade with money you can afford to lose."


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