Moving Average Forex Strategy For Metatrader 5

The Moving Average Forex strategy for Metatrader 5 tries to minimize the confusion and noise that is present within recent price action.

We basically added a few moving averages on our chart and then waited for a crossover to take place.

When moving averages cross over one another, it does signal that a trend is about to correct itself, thus offering us the opportunity to enter the market more suitably.

By so doing, you are handed down an advantage to bag more pips.

Our moving average MT5 strategy works beautifully when the market is volatile and/or trending and reduces false signals when the market is range-bound.

Let’s get started…

Trade Setup 

MetaTrader 5 Indicators: Exponential Moving Average.ex5 (Inputs Variable Modified; Period=36, Style Modified = Medium Blue), MA_ribbon_1.1.ex5 (Parameters Modified; Period=36, Method=Exponential), MACD_Squeeze.ex5 (Default Setting)

Trade Style: Scalping, day trading, swing trading

Trading Sessions: London | New York | Tokyo

Currency Pairs: Majors, cross pairs, exotics

Platform: Metatrader 5 (MT5)

Download

Download the Moving Average Forex Strategy For Metatrader 5

Buy Trade Example: EURUSD, M30 Chart

Fig. 1.0

Trading Strategy Rules For Buy and Sell Trades Explained

Buy Entry

Enter a buy trade if the following trading conditions are met:

  1. If the medium blue line of the exponential moving average Metatrader 5 indicator crosses the deep sky blue line segment of the MA_ribbon_1.1 custom indicator in a bottom up fashion as illustrated on Fig. 1.0, price is said to be tilted higher, therefore a buy trigger is said to be in place.
  2. If the green and red histograms of the MACD_Squeeze custom indicator breaks above the 0.00 horizontal level as seen on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy alert will suffice.

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

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions are met:

  1. If the medium blue line of the exponential moving average indicator intersects the sandy brown line segment of the MA_ribbon_1.1 indicator during the course of a bullish trend, bulls power is said to be weaning, hence an exit or take profit stance will do.
  2. If the MACD_Squeeze custom indicator pops up a red histogram below the 0.00 horizontal level as depicted on Fig. 1.0, it is a signal to exit or take profit at once.

Sell Entry

Open a sell trade if the following trading conditions are met:

  1. If the medium blue line of the exponential moving average forex indicator crosses the sandy brown line segment of the MA_ribbon_1.1 custom indicator in a top downward manner as exemplified on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the designated currency pair.
  2. If the red and green histograms of the MACD_Squeeze forex indicator stay below the 0.00 horizontal level as shown on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to sell without delay.

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

Suggested Exit Strategy/Take Profit for Sell Entry

Exit the sell trade if the following trading conditions are met:

  1. If the medium blue line of the exponential moving average indicator intersects the deep sky blue line segment of the MA_ribbon_1.1 indicator while a bearish trend is running, bears power is said to be halting, hence an exit or take profit stance is imminent.
  2. If the MACD_Squeeze custom indicator pops up a green histogram above the 0.00 horizontal level as illustrated on Fig. 1.1, it is a signal to exit or take profit immediately.

Sell Trade Example: EURUSD, M30 Chart

Fig. 1.1

Free Download

Download the Moving Average Forex Strategy For Metatrader 5

MT5 Trading Indicators Used For This Strategy

The exponential moving average is a default MT5 indicator that gives more weight or credence to the recent price data than the simple moving average does.

The MA_ribbon_1.1 is a Metatrader 5 forex signal indicator that plots fast and slow moving averages and fills the spaces created as a result of the crossovers, in line with market conditions.

The default color scheme of these spaces determines bullish (deep sky blue) or bearish (sandy brown) market conditions.

The MACD_Squeeze is a Metatrader 5 forex indicator that is based on the popular MACD indicator.

The indicator is made up of histograms that have attached signal labels along its center line.

The indicators central idea triggers trading only when Bollinger bands are within Keltner Bands, thereby forming trading zones.

Share Now!