Take advantage of the trend with this super easy forex strategy. The strategy consists of a trending system combined with an oscillator to pinpoint the entry signals.
The setup is as simple as adding the various indicators unto your chart and waiting for the patterns or rules to play out.
Chart Setup
MetaTrader4 Indicators: ang_AZad_vCg.ex4 (default setting), Holt_double_exponential_smoothing_2.2.ex4 (default setting), IDWma.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day
Recommended Trading Sessions: Any session
Currency Pairs: All pairs, also suitable for exotic pairs
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Place a buy in the market if the following rules or conditions are in place:
- If the red line of the IDWma.ex4 indicator crosses the lime green line of the Holt_double_exponential_smoothing_2.2.ex4 bottom up as seen on Fig. 1.0, while aligning itself below the lime green line of the Holt_double_exponential_smoothing_2.2.ex4, it is a trigger to go long on the pair of interest, i.e. a buy signal.
- If the blue line of the ang_AZad_vCg.ex4 custom indicator breaks above the 0.00 signal level as shown on Fig. 1.0, it is a sign that price is being pushed higher i.e. a buy signal.
Stop Loss for Buy Entry: Place stop loss 5 pips below support level.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following chart or indicator pattern pops up:
- If the orange line of the Holt_double_exponential_smoothing_2.2 custom indicator crosses the red line of the IDWma.ex4 indicator top downward as seen on Fig. 1.0, it is a trigger to exit or take profit accordingly.
- If the blue line of the ang_AZad_vCg.ex4 custom indicator dips below the 0.00 signal level as shown on Fig. 1.0, it is a trigger to exit or take profit forthwith.
Sell Entry Rules
Initiate a sell in the market if the following rules of conditions take precedence:
- If the orange line of line of the Holt_double_exponential_smoothing_2.2 indicator crosses the red line of the IDWma.ex4 indicator top downward as shown on Fig. 1.1, it is a sign that price is pressured to the downside i.e. a sell alert.
- If the blue line of the ang_AZad_vCg.ex4 custom indicator breaks below the 0.00 signal level and stays below this level as seen on Fig. 1.1, it is a sign that price is being pushed lower i.e. a sell signal.
Stop Loss for Sell Entry: Place stop loss 5 pips above resistance level.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following indicator or chart pattern gets displayed:
- If the lime green line of the Holt_double_exponential_smoothing_2.2 custom indicator crosses the red line of the IDWma.ex4 indicator bottom up, it is a trigger to exit or take profit accordingly.
- If the blue line of the ang_AZad_vCg.ex4 custom indicator rises above the 0.00 signal level as shown on Fig. 1.1, it is a trigger to exit or take profit without delay.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Inverse Distance Weighted Moving Average (IDWma.ex4) is a custom indicator that is most sensitive to price moves and has its MA period set at a default of 14.
The ang_AZad_vCg.ex4 is an oscillator that offers info to the prevalent market trend.
A bullish trend is depicted by its blue line hovering above the 0.00 signal level, while a bearish trend is portrayed when the blue line hovers below the 0.00 signal level.
The Holt_double_exponential_smoothing_2.2 is a trend following indicator that is essentially used for forecasting but not as an average. It uses linear forecasting in carrying out its forecasting method.