3MA Cross Forex Trading Strategy

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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Download the 3MA Cross Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following rules or conditions are true:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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

Free Download

Download the 3MA Cross Forex Trading Strategy

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).

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