The Caos Trading System is a forex trading system. It is quite a simple forex trading system. The Caos trading system can be used on the time frames higher than 15-minute. The Caos Trading System generates the trading signals both in the direction of the trend and in the counter trend direction. The Caos Trading System consists of five technical indicators. These indicators play vital role in generating trading signals. Although the Caos Trading System is very simple, sometimes, beginner traders might get lost inside the system because this forex trading system has no crystal clear signals. You should be watching the market very carefully in order to grab the signals of this forex trading system.
When the Caos Trading System is correctly installed on your trading platform, your chart should look like this:
- MAMA NK
The MAMA NK is a technical tool which is the custom made version of moving averages. There are two custom made moving averages used in this forex trading system. One of the moving averages is blue and another is red. The crossovers of these two moving averages can be taken as a signal generating events. This indicator also helps to figure out the general direction of the market.
- WATR
The WATR is a technical indicator which moves above/below the current market level. When the WATR indicator appears below the market level, you should understand that the market is up and vice versa.
- Wlx Fractals
The Wlx Fractals is the technical indicator which is nothing more than an ordinary fractal indicator. It consists of red and blue caps. When the red fractals appear below the market level, it’s a buy signal and when the blue fractals appear above the market level, it’s a sell signal.
- Awesome Oscillator
The Awesome Oscillator is a popular technical tool among the forex traders. This indicator enables you to know the direction of the market. When the market Awesome oscillator is in the positive territory, it means that the market trending upward while when the Awesome Oscillator is in the negative territory, it means that the market is down.
Buying Conditions Using Caos Trading System.
- Blue moving average of MAMA NK indicator should cross above the red moving average.
- A red cap should appear below the market level.
- The WATR indicator should appear below the market level.
- The Awesome Oscillator should be in positive territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the Awesome Oscillator enters in the negative territory.
Selling Conditions Using Caos Trading System.
- Blue moving average of MAMA NK indicator should cross below the red moving average.
- A blue cap should appear below the market level.
- The WATR indicator should appear above the market level.
- The Awesome Oscillator should be in negative territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the Awesome Oscillator enters in the positive territory.
Open demo account to test this system.
Download Free Forex Caos Trading System
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