Forex Strategy Manual:
Heiken Ashi + RSI/VWMA + Bollinger Bands (1:3 R:R)

Potential Strategy Names
🔹 XRM – Exhaustion Reversal Method
Focuses on my key strength: catching reversal points through exhaustion across Bollinger
Bands, RSI, VWMA, and price action.
🔹 ARES – Advanced Reversal Entry System
Sounds like a weaponized system and matches the aggressive precision of my strategy.
🔹 AXIS – Advanced eXhaustion Identification System
Symmetrical, clean, and memorable—symbolizes the balance between trend and reversal.

Strategy Framework & Core Parameters
Instrument: Any Forex Pair (Primarily Major Pairs) Timeframe:
Multi-timeframe analysis (Daily → 15m)
Indicators Used:

Heiken Ashi Candlesticks: Orange – Bear, White - Bull

Bollinger Bands (Length: 14, SMA Close, StdDev: 2)

RSI (Length: 8, Close)

VWMA overlay (Length: 14) & BB StdDev – 2

Upper Band: 65, Lower Band: 35

Style of RSI

Risk-to-Reward Ratio: 1:3

Step-by-Step Breakdown
Step 1: Top-Down Support & Resistance Mapping
Purpose: Visually identify the clearest reversal zones using structure across multiple
timeframes.
1. Daily Chart (D1) – Trend Analysis Only
- Observe the overall market trend: bullish, bearish, or ranging.
- No need to draw zones—this is just for context and directional bias.
2. 4-Hour Chart (H4)
Mark Support 3 (S3) and Resistance 3 (R3)
zones. 3. 1-Hour Chart (H1)
Mark Support 2 (S2) and Resistance 2 (R2)
zones. 4. 15-Minute Chart (M15) – Execution
Timeframe - Mark Support 1 (S1) and Resistance 1
(R1) zones.
Step 2: Identify Market Exhaustion
We are hunting for reversal points, not just momentum.
1. Bollinger Bands (Price Exhaustion)
- Look for price (body or wick) to cross outside the upper/lower BB.
2. RSI Overextension (Shaded Zones)
- Watch RSI push into extreme overbought (>65) or oversold (<35).
3. RSI/VWMA Crossover Confirmation
- Bullish Reversal: RSI crosses above VWMA from oversold zone.
- Bearish Reversal: RSI crosses below VWMA from overbought zone.
4. Watch for These Price Action Patterns:
- Triple Top / Triple Bottom
- Rounding Bottom + Rectangle
- Wedge / Triangle formations
Step 3: Confirm the Reversal with Candlestick & Pattern Analysis
You want to see a shift in momentum through candlestick language and classic PA.
1. Look for strong full-bodied Heiken Ashi candles in the opposite direction of the trend.
2. Confirm using candlestick or price action patterns, such as:
- Engulfing (Bullish or Bearish)
- Doji
- Hammer / Shooting Star
- Morning / Evening Star
- Rounding Bottom / Rectangle Breakout
- Triangle / Wedge Patterns

Step 4: Enter the Trade (With Price Action Confirmation)
Only enter when all layers confirm.
- Entry Criteria:
- Bollinger Band exhaustion confirmed
- RSI in shaded extreme + crossover with VWMA - Price action pattern + reversal candle at
S1/R1 or S2/R2 - Set Stop Loss & Take Profit:
- SL: Just beyond recent swing high/low
- TP: 3x the risk distance
- Stick to a 1:3 Risk-to-Reward ratio
Step 5: Exit Strategy
Exit with the same logic as entry: reversal signals and structure.
- Look for signs of exhaustion or momentum loss in your direction:
- Opposite RSI/VWMA crossover
- Opposite BB exhaustion
- Reversal candles against your trade
- Price reaching higher timeframe S/R

News-Impact Protocol
1. Formalized Trading Rules During Major News Events
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Pre-News Blackout: Avoid new trades two hours before scheduled major news.
Intra-News Blackout: No trading during the event itself.
Post-News Blackout: No trading for two hours after news.
Dynamic Bias Activation: Switch to a bias aligned with the fundamental shock.

Example: Bearish AUD after negative China news.
2. Dynamic Bias Adjustment Framework
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Trigger: Major unexpected news affecting a key partner.
Action: Switch bias (e.g., Bearish AUD).
Duration: Maintain for two weeks minimum.
Monitoring: Watch for new news that could alter bias.

3. Bias Adjustment Flowchart
Major News Event -> Identify FX Impact -> Assess Impact -> Set Temporary Bias ->
Only Trade in Bias Direction -> Reassess if new news arrives.

4. Post-News Event Checklist
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Wait 2 hours after news.
Confirm bias alignment.
Only trade with the bias.
Check for conflicting news.
Reduce position size 30-50%.
Confirm normal spreads.

5. Enhanced Risk Management During Volatile Periods
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Reduce Position Size
Widen Stop Losses
Prioritize Capital Protection
Maintain 1:3 Risk:Reward
Monitor Liquidity Conditions.

6. Bias Reassessment Rules
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Duration: 2 weeks minimum.
Reassess on new macro news, policy changes, strong technical reversals.

