48# XU Hybrid 3.2 Trading System

Submit by Dimitri 2024  source: www.forex-station.com

XU Hybrid 3.2 Trading System is a trend momentum forex strategy.

Time Frame:

• 15-minute chart or higher (preferably 30-minute, 1-hour, or 4-hour).

Instruments:

• Volatile currency pairs (Forex)

• Nasdaq (US100)

• Gold (XAU/USD)

• Oil (WTI/Brent)

• Dow Jones (US30)

• S&P 500 (US500)

Indicators Setup:

Main Chart:

1. Lucky Reversal (Swing High/Low Support and Resistance):

   • Plots swing high/low levels and dynamic support and resistance dots on the chart.

2. MA Ribbon:

   • Displays a series of moving averages to capture trend direction.

   • Green ribbon signals a bullish trend.

   • Red ribbon signals a bearish trend.

3. ADR (Average Daily Range) Info:

   • Weekly, daily, and holiday information about the market's ADR to gauge volatility levels.

Sub-window:

1. RSI (Relative Strength Index) with Arrows (Period 16, Mode: Regular RSI):

   • Buy/Sell arrows appear when RSI crosses key levels.

   • Buy signals when RSI arrow points upward.

   • Sell signals when RSI arrow points downward.

2. CCI (Commodity Channel Index) Histogram (Default Settings):

   • Positive values indicate bullish momentum (green bars).

   • Negative values indicate bearish momentum (red bars).

3. Elegant Oscillator (20, 50, 9 settings):

4.  

   • Set next timw frame.

   • Green line signals positive momentum (bullish).

   • Red line signals negative momentum (bearish).

Trading Rules:

Buy Setup:

1. RSI Buy Arrow:

   • A green RSI arrow appears indicating upward momentum.

2. Lucky Reversal Support Dots:

   • Support dots appear below the price, confirming a bullish trend.

3. MA Ribbon Color:

   • The MA ribbon must be green, showing a bullish trend.

4. Momentum Confirmation:

   • The Elegant Oscillator’s green line indicates positive momentum.

Entry:

• Enter a buy trade when all the conditions above are met simultaneously.

Stop Loss:

• Place the stop loss at the previous swing low, identified by the Lucky Reversal indicator.

Take Profit Target:

• Set the profit target using a risk/reward ratio between 1:1.2 and 1:1.6, depending on the volatility of the market. For higher volatility pairs or instruments like Gold and Oil, use 1:1.6.

Sell Setup:

1. RSI Sell Arrow:

   • A red RSI arrow appears indicating downward momentum.

2. Lucky Reversal Resistance Dots:

   • Resistance dots appear above the price, confirming a bearish trend.

3. MA Ribbon Color:

   • The MA ribbon must be red, showing a bearish trend.

4. Momentum Confirmation:

   • The Elegant Oscillator’s red line indicates negative momentum.

Entry:

• Enter a sell trade when all the conditions above are met simultaneously.

Stop Loss:

• Place the stop loss at the previous swing high, identified by the Lucky Reversal indicator.

Take Profit Target:

• Set the profit target using a risk/reward ratio between 1:1.2 and 1:1.6, depending on market volatility. For highly volatile instruments like Oil, Gold, and Nasdaq, prefer 1:1.6.

Additional Notes:

• Volatility Consideration:
  During times of increased volatility (based on ADR and market session), widen the stop loss and adjust the take profit target accordingly.

• Avoid Trades:
  During holidays or low volatility sessions (ADR shows reduced activity), avoid trading as market conditions might not favor strong movements.

• Trade Management:
  Consider moving the stop loss to break-even once the trade has moved in your favor by 50% of the take profit distance.

This strategy, Hybrid XU 2.3, combines trend, momentum, and volatility analysis to provide a structured approach to entering and managing trades in various markets. It is essential to practice proper risk management and consider market conditions when applying this strategy.