Forex Diversity System is a forex trading strategy which generates signals on the basis of technical indicators and the price actions. The most appealing aspect of Forex diversity forex trading strategy is its simplicity. The forex diversity system is a simple Fx trading strategy. Those automatically drawn channels are the one of the most powerful tools of this trading strategy. Automatic channels are drawn on the basis of support and resistance level that is formed on the price chart. The Forex diversity system is more compatible in a trending market since it was developed to trade in a trending environment. The perfect time frame to trade with Forex Diversity system is hourly and 30 minutes, hourly chart is highly recommended though. The price bars used in this system is called VQ bars and it is customized form of the candle stick bars. The price bars seem to not have shadows like that of candlestick chart.
There are five technical tools used in this forex trading strategy. When the Forex Diversity System is correctly installed on your trading platform, your chart should look like this:
- VQ Bars
VQ bars are the customized price bars which are different than any ordinary price bars. It is definitely easier to analyze than normal candle stick bars because it reduces the noise and makes the direction of the market clearly visible with the naked eyes. Such kinds of charts can be very beneficial to the beginner traders.
- Trend Channel
Trend Channel is an automated channel that is drawn on the main price chart by the Forex Diversity System. There is also a dotted midline that runs between the parallel to the trend channel.
- Support and Resistance
Support and Resistance is the technical tool displays the potential support and resistance level on the main chart. These levels can be the good signals for buying and selling the pair.
- Awesome Oscillator
Awesome Oscillator consists of a histogram which consists of red and white bars. Positive histogram indicates the bullish dominance whilst the negative histogram indicates the bearish dominance.
- RSI Filter
This indicator doesn’t need any explanation because it is a very popular tool among the forex traders but it is a RSI filter. It is a filtering tool which uses the formula of RSI. White bars indicate the bullish move whereas red bars indicate the bearish move.
Buying Conditions Using Forex Diversity System.
- Support and Resistance indicator should appear below the price chart.
- Awesome oscillator’s bar should be white in color.
- RSI filter bar should be white in color.
- Place your stop loss just below the recent swing low.
- Take your profits when the price touches the upper trend line of the channel.
Selling Conditions Using Forex Diversity System.
- Support and Resistance indicator should appear above the price chart.
- Awesome oscillator’s bar should be red in color.
- RSI filter bar should be red in color.
- Place your stop loss just above the recent swing high.
- Take your profits when the price touches the lower trend line of the channel.
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