Slow Moving Averages (SMA) Crossover Forex Strategy

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.

Chart Setup

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

Download

Download the Slow Moving Averages Strategy for Metatrader 4.

EUR/USD 4 Hour Chart Example

slow-sma-strategy1

The EUR/USD 4 hour chart above generated 4 trading signals.

All trades were close for a profit.

Trading Rules

Buy Rules:

  • 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).

Sell Rules:

  • 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).

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