100 Period Simple Moving Average Forex Strategy With Oscillator

Another simple strategy to take full advantage of the prevailing trend.

It’s made up of a classic trending indicator along with an advanced oscillator.

Chart Setup

Indicators: 100 period simple moving average (100 SMA), schaff-trend-cycle
Preferred time frame(s): 30 min and above
Trading sessions: Any
Preferred Currency pairs: Pairs with medium to high volatility (EUR/USD, GBP/USD, USD/JPY, EUR/JPY, GBP/JPY,…)

Download

Download the 100 Period Simple Moving Average Forex Strategy With Oscillator for Metatrader 4.

EUR/USD Daily Chart

100-sma-forex-strategy

The picture above illustrates 3 valid buy trading signals in an up trending market (price above the 100 period simple moving average).

Check out a full explanation of the buy trading rules below. Click to enlarge the trading chart.

Trading Rules

Buy Rules:

  • Criteria #1: Exchange rate above the 100 SMA (up trend)
  • Criteria #2: schaff-trend-cycle oscillator rises back above 0.00 (oversold)

This is your buy entry signal. Set protective stop-loss 5 pips + spread below the most recent swing low price.
Suggested Targets : Close 50% of the trade at 1.5 risk-to-reward (i.e. risking 100 to make 150). Close the remaining 50% at 2.0 or 3.0 (depends on your risk appetite).

Sell Rules:

  • Criteria #1: Exchange rate below the 100 SMA (down trend)
  • Criteria #2: schaff-trend-cycle oscillator falls back below 100 (overbought)

This is your sell entry signal. Set protective stop-loss 5 pips + spread above the most recent swing high price.
Suggested Targets : Close 50% of the trade at 1.5 risk-to-reward (i.e. risking 20 to make 30). Close the remaining 50% at 2.0 or 3.0 (depends on your risk appetite).

Share Now!