SMMA Forex Trading Strategy For Scalping
Unlike most forex scalping systems out there, the SMMA forex trading strategy is a unique trading system designed to yield consistent profits.
The strategy takes advantage of two key indicators i.e. the SMMA-Crossover_Signal.ex4 and the real MACD MT4 indicators.
MetaTrader4 Indicators: SMMA-Crossover_Signal.ex4 (default setting), realMACD.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes
Recommended Trading Sessions: Any
Currency Pairs: any
Buy Trade Example (Click the image for full size)
Long Entry Rules
Enter a buy position if the following rules or conditions are in place:
- If the green upward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator forms below price bars, it is an indication that price is heading north i.e. a buy signal.
- If the blue line of the real MACD crosses the red line upwards and subsequent yellow histograms forms above the 0.00 level, it is a signal to buy.
Stop Loss for Buy Entry: Place stop loss ~ 5 – 15 pips below entry price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on position(s) if the following conditions or rules are in place:
- If a red downward pointing arrow of the SMMA-Crossover_Signal.ex4 custom indicator shows up on the activity chart above price bars, it is an indication of a possible reversal, as such an exit or take profit is appropriate.
- If the blue line of the real MACDcrosses the red line downwards, while the yellow histograms diminishes into the 0.00 level, an exit is advised.
Sell Entry Rules
Initiate a sell order if the following is true:
- If the SMMA-Crossover_Signal.ex4 custom indicator forms a red downward pointing arrow above price bars, it signifies a bearish trend.
- If blue line of the real MACD custom indicator crosses the red line downwards, plus yellow histograms forming below the 0.00 level, it is indicative of a bearish signal.
N.B. Notice that from point in which our first signal was issued based on the strategy, we waited some more before we got signal from the SMMA-Crossover_Signal.ex4 custom indicator.
The rule here is that, as far as the conditions for a sell are being upheld by one indicator, it remains valid for entry pending when the next condition will be met.
Stop Loss for Sell Entry: Place stop loss ~ 5 – 15 pips above entry price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on any of the following conditions:
- If the SMMA-Crossover_Signal.ex4 custom indicator forms a green upward pointing arrow below price bars, it signals an exit or take profit.
- If the blue line of the real MACD custom indicator crosses the red line upwards, in addition to a diminishing of the yellow histograms into the 0.00 level.
About The Trading Indicators
The SMMA-Crossover_Signal.ex4 indicator is a trend following indicator that is built on the principle of two Simple Moving Averages crossover.
Seemingly, the real MACD indicator is also a trend following indicator designed after the MACD MT4 indicator.