The AMA Signals Forex strategy is a profitable system that identifies market trends in a flawless manner.
Designed to be a trend-following strategy, the strategy does gauge the overall market trend in an efficient manner.
Although, it doesn’t pose any constraint for long-term trading, the strategy is better suited for short and medium –term traders.
We have been able to simplify this trading strategy by using a pair of indicators that simply keeps up with our idea that simple is best.
One way to stay profitable is to maintain your discipline while enforcing our trading rules.
This makes it easier to initiate positions, manage risk and exit trades.
MetaTrader4 Indicators: ama-signals.ex4 (Inputs Variable Modified; periodAMA=15), delta-rsi-indicator.ex4 (Inputs Variable Modified; Fast RSI Period=28, Signal Level=0)
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 blue dotted red line of the ama-signals Metatrader 4 forex indicator gets aligned slightly below the candlesticks as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to go long on the designated currency pair.
- If the red histograms of the delta-rsi-indicator gets stacked above the zero center line as exemplified on Fig. 1.0, price is said to be pressured to the upside, therefore a trigger to buy the desired forex pair is appropriate.
Stop Loss for Buy Entry: Place stop loss below the most recent swing low price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the ama-signals custom indicator displays a brown dot on the red line (see Fig. 1.0), bulls power is said to be weaning, as such an exit or take profit is duly recommended.
- If a green histogram pops up below the 0.00 signal level within the delta-rsi-indicator window while a bullish trend is ongoing, price is said to be making a likely U-turn, thus an exit or take profit is advised.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the brown dotted red line of the ama-signals custom indicator gets positioned fairly above the price bars as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the currency pair of interest.
- If the green histograms of the delta-rsi-indicator gets piled below the zero center line as seen on Fig. 1.1, bears are said to be driving price lower, as such a trigger to go short on the selected fx pair will suffice.
Stop Loss for Sell Entry: Place stop loss above the most recent swing high price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the ama-signals custom indicator displays a blue dot on the red line as shown on Fig. 1.1, price is said to be making a likely bullish reversal, hence an exit or take profit is duly advised.
- If a red histogram pops up above the 0.00 horizontal signal level within the delta-rsi-indicator window during a bearish trend, price is said to be making a probable U-turn, thus an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The ama-signals.ex4 custom indicator is an Adaptive Moving Average type that is used to gauge the overall trend, pinpoint market turning points and also filter price movements.
The delta-rsi-indicator.ex4 is a modified relative strength index indicator that quickly defines overbought/oversold market conditions.