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!
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
Buy Trade Example: EUR/USD (EURO / US Dollar), H1 Chart
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
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.
Start using this forex strategy in just 5 minutes. Click here to get started now.