MA Trend Forex Trading Strategy

Trading is an art and to be able to interpret the art of trading, one needs to get started with the right trading strategy.

The MA Trend forex trading strategy can be adopted by beginners and advanced traders alike, all you need do is just apply the accompanying basic indicators.

Let’s get started!

Chart Setup

MetaTrader4 Indicators: MA_in_Color.ex4 (default setting), Trend_Bands.ex4 (Inputs Variable modified: period = 24)

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

Recommended Trading Sessions: Any

Currency Pairs: Majors, Cross pairs

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the follow indicator or chart patterns get displayed:

  1. If the magenta middle line of the Trend_Bands.ex4 custom mt4 indicator crosses the line of the MA_in_Color.ex4 custom mt4 indicator bottom up as shown on Fig. 1.0, price is said to be experiencing pressures to the upside, and as such a buy signal is appropriate.

Fig. 1.0 shows that upon the lines intersecting, price shifts upwards and trades somewhat above the magenta middle line of the Trend_Bands.ex4 indicator and line of the MA_in_Color.ex4 custom mt4 indicator. This setup supports our overall bullish sentiment.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions hold sway on the activity chart:

  1. If price closes below the line of the MA_in_Color.ex4 custom mt4 indicator as illustrated on Fig. 1.0, it is an indication of weaning bulls pressures, as such an exit or take profit is recommended.

Sell Entry Rules

Initiate a sell entry if the following chart or indicator patterns get displayed:

  1. If the magenta middle line of the Trend_Bands.ex4 custom mt4 indicator crosses the line of the MA_in_Color.ex4 custom mt4 indicator top downwards as displayed on Fig. 1.1, price is said to be experiencing pressures to the downside, and as such a sell signal is appropriate.

Fig. 1.1 reveals that once the lines intersect for a bearish setup, price shifts downwards and trades somewhat below the magenta middle line of the Trend_Bands.ex4 indicator and line of the MA_in_Color.ex4 custom mt4 indicator. This setup supports our overall bearish sentiment.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions hold sway on the activity chart:

  1. If price closes above the line of the MA_in_Color.ex4 custom mt4 indicator as shown on Fig. 1.1, it is an indication that more sellers are leaving the market, as such an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Trend_Bands.ex4 is an indicator that resembles the Bollinger Bands, but it is set at a default period (34).

When price trades along the upper outer bands, it is suggestive of a bullish signal, while it is a bearish alert when price hovers around the lower outer band.

The MA_in_Color.ex4 is an exponential moving average with period 14 and is a trend following indicator that adds more weight to the latest data.

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