The 3MA Cross forex trading strategy integrates two custom developed indicators as prime technical studies deployed in vending out buy/sell signals.
Add the indicators (download the strategy below) to the MT4 chart and watch out for setup as they develop.
Chart Setup
MetaTrader4 Indicators: 3_MA_CROSS_W_ALERT_V2.ex4 (default setting), ForexLine_update_03.ex4 (color # 5 modified = red)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day
Recommended Trading Sessions: Any
Currency Pairs: All pairs
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following rules or conditions are true:
- If the line of the ForexLine_update_03.ex4 custom indicator turns blue, with price trading above the indicator line, it is a signal that price is being pushed higher, an indication that bulls are taking the day i.e. a buy alert.
- If the 3_MA_CROSS_W_ALERT_V2.ex4 custom indicator forms a red upward pointing arrow that is aligned below the candlesticks, the market sentiment is said to be bullish i.e. a buy signal.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following chart or indicator patterns get shown:
- If the line of the ForexLine_update_03.ex4 custom indicator turns red as shown on Fig. 1.0, it is a signal that price is making a U-turn, as such an exit or take profit is advised.
- If the 3_MA_CROSS_W_ALERT_V2.ex4 custom indicator forms a green downward pointing arrow while in a bullish trend, this is a signal of buyers leaving the market and points to a likelihood of price driving lower i.e. an exit or take profit is advised.
Sell Entry Rules
Initiate a sell in the market if the following holds true:
- If the line of the ForexLine_update_03.ex4 custom indicator turns red, with price trading somewhat below the indicator line, it is a signal that price is being pushed lower, an indication that bears are dominating the market i.e. a sell alert.
- If the 3_MA_CROSS_W_ALERT_V2.ex4 custom indicator forms a green downward pointing arrow that is aligned below the candlesticks, the market sentiment is said to be bearish i.e. a sell signal.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on open position(s) if the following gets spotted on the chart:
- If the line of the ForexLine_update_03.ex4 custom indicator turns blue as depicted on Fig. 1.1, it is a signal that price is making a U-turn, as such an exit or take profit is advised.
- If the 3_MA_CROSS_W_ALERT_V2.ex4 custom indicator forms a red upward pointing arrow while in a bearish trend, this is a sign of sellers reducing their positions in the market and points to a likelihood of price driving higher i.e. an exit or take profit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The 3_MA_CROSS_W_ALERT_V2.ex4 custom indicator is a forex technical study that displays arrows on the chart, where red colored arrows denote bullish trend and green defines bearish trend.
The ForexLine_update_03.ex4 is a trend following line indicator that changes color based on the prevalent market trend (blue for bulls and red for bears).