One notable mistake that forex traders tend to make is overcrowding their chart windows with too many technical indicators that will contradict each other and cloud your judgement.
The 3 MA Cross With Alert MTF Forex Strategy is designed with simplicity in mind.
The charts are easily understandable and the added indicators are simple to interpret.
One good thing to take home is the fact that such indicators work great because more traders tend to use them, thereby increasing the likelihood that signals based on the 3 MA Cross With Alert MTF Forex Strategy will go the right way.
Let’s take a quick peep of how all these will play out.
MetaTrader4 Indicators: 3-ma-cross-with-alert-mtf.ex4 (Default Setting), macd-rising-falling.ex4 (Colors Width Modified; #2=2)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the aqua upward pointing arrow of the 3-ma-cross-with-alert-mtf Metatrader 4 forex indicator pops up below the candlesticks, while price trades somewhat above the indicator lines (see Fig. 1.0), the overall market sentiment is said to be bullish, hence a trigger to go long will suffice.
- If the lime green and gold histograms of the macd-rising-falling indicator stays above the zero signal level, price is said to be driven higher, as such a trigger to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below most recent swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the 3-ma-cross-with-alert-mtf indicator pops up a red downward pointing arrow during a bullish signal, price is said to be making a probable U-turn, hence an exit or take profit is duly recommended.
- If the macd-rising-falling indicator pops up a red histogram that is aligned below the 0.00 during a bullish trend (refer to Fig. 1.0), bulls power is said to be weaning i.e. a trigger to exit or take profit forthwith.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the red downward pointing arrow of the 3-ma-cross-with-alert-mtf Metatrader 4 forex indicator pops up above price bars, while price trades fairly below the indicator lines (see Fig. 1.1), the general market sentiment is said to be bearish, hence a trigger to go short will suffice.
- If the red and gold histograms of the macd-rising-falling indicator hovers below the zero signal level, price is said to be pushed lower, as such a trigger to sell the currency pair of focus.
Stop Loss for Sell Entry: Place stop loss above most recent swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the 3-ma-cross-with-alert-mtf indicator pops up an aqua upward pointing arrow while a bearish trend is ongoing, price is said to be making a likely bullish reversal, as such an exit or take profit is duly advised.
- If the macd-rising-falling indicator pops up a lime green histogram that is placed above the 0.00 during a bearish trend as exemplified on Fig. 1.1, bears power is said to be halting i.e. a trigger to exit or take profit straightaway.
Sell Trade Example
About The Trading Indicators
The 3-ma-cross-with-alert-mtf.ex4 indicator is a multi-time frame custom indicator that shows signal arrows on the chart, along with three overlapping exponential moving averages.
It is primarily used as a trend indicator.
The macd-rising-falling.ex4 indicator is a trend-following momentum indicator that reveals the connection between two moving averages (FastEMA & SlowEMA) of price.