Forex Indicator Strategy That Works

The Forex indicator strategy reveals a simple, yet effective trading plan with the help of 3 chart indicators and buy/sell rules that works for any currency pair and time frame.

Some users report 75% wins with this pure indicator trading strategy that follows the most profitable currency trend.

Let’s get started with the chart setup!

Chart Setup

MetaTrader 4 Indicators: Moving Average.ex4 (Parameters Modified; Period=28, Shift=3, Style=Magenta), Holt_double_exponential_smoothing_2.2.ex4 (Inputs Variable Modified; Estimate period=28.66), Holt_double_exponential_smoothing_trend.ex4 (Inputs Variable Modified; Trend period=23.0)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example: EUR/USD (EURO / US Dollar), H1 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the magenta 28 SMA Metatrader 4 indicator line crosses below the dual colored Holt_double_exponential_smoothing_2.2 custom indicator line as depicted on Fig. 1.0, the general market sentiment is said to be bullish, as such a buy entry is said to be imminent.
  • If the gray line & lime green histograms of the Holt_double_exponential_smoothing_trend custom indicator break above the 0.00 horizontal level as illustrated on Fig. 1.0, price is said to be pressured to the upside, therefore it is a trigger to go bullish on the selected currency pair.

Stop Loss for Buy Entry: Place stop loss below the magenta rising support line.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If the magenta line of the 28 SMA indicator intersects the dual colored Holt_double_exponential_smoothing_2.2 forex indicator line during the course of a bullish signal, it is a signal to exit or take profit at once.
  • If during the course of a bullish signal the gray line of the Holt_double_exponential_smoothing_trend indicator declines below the 0.00 reference level (see Fig. 1.0), it is signaling a likely end in bullish sentiment, therefore an exit or take profit stance is recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the magenta 28 SMA forex indicator line crosses above the dual colored Holt_double_exponential_smoothing_2.2 custom indicator line as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, therefore a sell alert will do.
  • If the gray line & orange histograms of the Holt_double_exponential_smoothing_trend custom indicator dips below the 0.00 horizontal level as seen on Fig. 1.1, price is said to be dragged lower, therefore it is a trigger to go bearish on the currency pair of interest.

Stop Loss for Sell Entry: Place stop loss above the magenta falling resistance line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the magenta line of the 28 SMA indicator intersects the dual colored Holt_double_exponential_smoothing_2.2 forex indicator while a bearish trend is on course, it is a signal to exit or take profit forthwith.
  • If the gray line of the Holt_double_exponential_smoothing_trend indicator surges above the 0.00 reference level during a bearish trend (check Fig. 1.1), it is pointing to a possible bullish reversal, therefore an exit or take profit stance is advised.

Sell Trade Example: EUR/USD (EURO / US Dollar), H1 Chart

Fig. 1.1

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About The Forex Technical Indicators Used

The Holt_double_exponential_smoothing_trend is a form of an “on-chart average like” custom indicator that can forecast trend.

The indicator oscillates above (buy) or below (sell) its zero signal level.

The Holt_double_exponential_smoothing_2.2 is a trend following indicator that is essentially used for forecasting but not as an average.

It deploys linear forecasting when performing its forecasting method.

The 28 SMA is a simple moving average (SMA), which is the average price over a given number of time periods, and we did set it at 28 periods.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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