This trend following strategy is based on the crossover of 3 simple moving averages. Simplicity!
It doesn’t require active system monitoring and maintenance.
You just need to check your charts at the close of each candlestick.
Indicators: 13 simple moving Average (13 SMA), 26 simple moving Average (26 SMA), 100 simple moving Average (100 SMA)
Preferred time frame(s): 1 hour and above
Trading sessions: All
Preferred Currency pairs: All
EUR/USD 4 Hour Chart Example
The EUR/USD 4 hour chart above generated 4 trading signals.
All trades were close for a profit.
- 26 SMA crosses 100 SMA from below (bullish bias)
- 13 SMA crosses 26 SMA and 100 SMA from below (bullish trend)
Open BUY position now. Set stop loss below the swing low or 1 pip below the 100 SMA (green line)
Price objective method : close the buy trade when 13 SMA crosses the 26 SMA from above (short-term bearish trend).
- 26 SMA crosses 100 SMA from above (bearish bias)
- 13 SMA crosses 26 SMA and 100 SMA from above (bearish trend)
Open SELL position now. Place stop loss above the swing high or 1 pip above the 100 SMA (green line)
Price objective method: close the sell trade when 13 SMA crosses the 26 SMA from below (short-term bullish trend).