The «Trend Acceleration» Forex Strategy

The «Trend Acceleration» forex strategy is quite simple and needs no indicators at all to trade or analyze the market. We have already covered a similar strategy on our site, also based on the acceleration candle (the «Fant» forex strategy). To find a trade, you only need to identify an acceleration candle on the daily chart and then look for an entry on a lower timeframe in the direction of the higher-timeframe move.

On GBP/USD and EUR/USD, from the start of 2015 to the day of writing (September 24, 2015), this strategy made a profit of +1590 pips (4-digit quotes). Since the strategy recommends risking 1% of the deposit per 10 pips of stop, the profit for less than 9 months came to 159%, which is not bad at all. Especially considering that the strategy does not take much time. During this period there were only 24 trade signals: 6 of them closed at breakeven, 5 at the stop and the other 13 at take profit — and one stop is two to three times smaller than the profit from one take profit.

First, let’s recall how to identify an acceleration candle.

After a downtrend, the price reverses and at least one white candle forms. On the move up, a candle whose white body is smaller than or equal to its lower wick is an acceleration candle. Its upper wick should not be too long. The upper wick must not end up below the local low from which the reversal started.

After an upward move, the price reverses and at least one black candle forms. On the move down, a candle whose black body is smaller than or equal to its upper wick is an acceleration candle. Its lower wick should not be too long. The upper wick must not end up above the local high from which the reversal started.

• The acceleration candle is identified on the daily chart (D1).
• The entry is made on the hourly chart (H1).

• any (!) — the strategy is multi-currency.

Buy entry rules of the «Trend Acceleration» strategy:

1) Wait for a bullish acceleration candle to form on the daily chart, then on the next trading day switch to the H1 chart. (You may wait for a signal on H1 for two days at most.)

2) After switching to the hourly chart, immediately place a buy stop order exactly 5 pips above the high of the acceleration candle.

3) If a bullish acceleration candle forms on the hourly chart before the pending order is triggered, open a buy order at its close and delete the pending order. (If that trade closes at the stop loss, you can still wait for an entry by the pending order that day, so place it again.)

4) For an entry by the pending order, the stop loss is 50 pips.

5) For an entry on an H1 acceleration candle, the stop loss goes beyond the last local low, but no less than 30 pips.

6) Once the trade has moved into profit by half the size of the daily acceleration candle, move it to breakeven.

7) The take profit is set at a distance equal to the full daily acceleration candle + 40 pips.

8 ) If at the close of a daily candle the price is away from the entry point by the size of the acceleration candle, do not wait for the take profit — close the trade at the market price.

Sell entry rules:

1) Wait for a bearish acceleration candle to form on the daily chart (D1), then on the next trading day switch to H1. (You may wait for a signal on H1 for two days at most.)

2) After switching to the hourly chart, immediately place a sell stop order exactly 5 pips below the low of the acceleration candle.

3) If a bearish acceleration candle forms on the hourly chart before the pending order is triggered, open a sell order at its close and delete the pending order. (If that trade closes at the protective stop loss, you can still wait for an entry by the pending order that day, so place it again.)

4) For an entry by the pending order, set the stop loss 50 pips away.

5) For an entry on an H1 acceleration candle, the stop loss goes beyond the last local high, but no less than 30 pips away.

6) Once the trade has moved into profit by half the size of the daily acceleration candle, move it to breakeven (move the stop to zero).

7) The take profit is set at a distance equal to the full daily acceleration candle + 40 pips.

8 ) If at the close of a daily candle the price is away from the entry point by the size of the acceleration candle, do not wait for the price to reach the take profit — close the trade at the current market price.

Video of the «Trend Acceleration» forex strategy: