This systems backbone is the Awesome Oscillator by Bill Williams. When combined with the indicators detailed below, it becomes a very high accuracy trading tool. It becomes very consistent on a 4hr chart. This system is designed to find high probability trades on a 4hr chart and lock in profits quickly and protect you from losses quickly.
Development
It all started when I added the awesome oscillator to a chart and began to realize its true potential. However, you will quickly realize that the Awesome Oscillator alone is not a powerful enough indicator. After months of testing over 25 different indicators, with god knows how many different setups, I have finally determined the following:
1. The Awesome Oscillator determines the general direction of a trending market with great accuracy.
2. ADX determines the strength of the current trend, as well as a confirmation on direction.
3. Stochastic helps determine when a trend has truly changed directions.
In Conclusion,
With the awesome Oscillator showing the direction of the market, the adx showing you that it has enough power to make you a decent amount of pips, and the stochastic oscillator confirming a trend move, these 3 indicators working together provides a very reliable entry signal.
These three indicators might sound like it will be confusing, but it is actually very simple, please continue reading for the full details of the system.
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