|Welcome to currency trading with Profiforex!
|When both the momentum (Awesome Oscillator) and acceleration (Acceleration/Deceleration Oscillator) have the same direction (both green or red), it means the trend is accelerating in the favorable direction.|
This principle is the basis of "trading in the zone," which, according to Bill Williams, represents the fourth dimension of the market.
|If both histogram bars of two indicators are green, this is defined as the green zone.|
|When both are red, it's the red zone.|
|In order to open new long positions in the green zone or short positions in the red zone, you need to have at least two consecutive green or red bars, and the close price of the second bar must be higher (lower) than the closing price of the preceding one.|
|However, we stop adding to the zone after five consecutive green or red histogram bars, since it's unusual for the market to have more than six to eight bars of one color.|
In case of appearance of the fifth green or red bar it is necessary to expose Stop Loss the warrant on 1 пипс below minimum or above a ceiling price of the fifth bar. If on the following bars the stop warrant isn't executed, it needs to be changed to the level, which on 1 pips below than the minimum or above a ceiling price of the sixth bar and so on.