Strategy Author:
Bill Williams
EA Author:
ForTrader.ru
Understanding the 'Saucer' Signal for Buying
The 'Saucer' signal appears when the histogram crosses above the zero line and shifts its direction from declining to rising.
- The A column should be above the B column and can be any color.
- The C column (the signal) must be green.
The signal bar is the one where the signal column forms. Once this signal is established, we place a pending order for a Buy Stop just one pip above the signal bar. Remember, the latest 'saucer' signal for buying will overwrite all previous signals, so make sure to delete any old pending orders when a new signal arises.
As a rule of thumb, we only buy if the current column is green and sell if the current column is red.
Understanding the 'Saucer' Signal for Selling
The 'Saucer' signal for selling mirrors the buying signal: the histogram below the zero line changes direction from rising to falling.
- The A column should be below the B column and can be any color.
- The B column should be green, while the C column (the sell signal) must be red.
Once the selling signal is formed, we place a pending order for a Sell Stop just one pip below the signal bar. Again, the most recent 'saucer' signal for selling will cancel out all previous signals.
For more in-depth insights, check out the research on the 'Saucer' pattern in the 32nd issue of the electronic journal, ForTrader.ru.
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