TMA Slope Forex Trading Strategy

The TMA Slope forex trading strategy is a strategy that is not complicated and trails the market for profitable and safe entries.

The strategy does in a way look backward at price action for it to forecast the future from the recent history.

Chart Setup

MetaTrader4 Indicators: TmaSlope.ex4 (default setting), Alligator.ex4 (default setting), Big Trend.ex4 (Color Width modified: Width = 3)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, CAD/JPY, CHF/JPY, AUD/NZD

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If the blue line of the Alligator indicator crosses its lime and red lines bottom up as seen on Fig. 1.0 with price trading somewhat above the lines, it is a trigger to enter buy position(s). Meanwhile, if the line of the Big Trend custom mt4 indicator is painted light blue, price is said to be experiencing bullish momentum i.e. a buy trigger.
  2. If the lime and gray histogram of the TmaSlope.ex4 custom mt4 indicator aligns above the 0.00 signal level, it is a signal to buy the pair of interest.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway on the activity chart:

  1. If the blue line of the Alligator indicator crosses its lime and red line top downwards, while the line of the Big Trend custom mt4 indicator gets painted tomato, it is a signal to exit or take profit without delay.
  2. If the histograms of the TmaSlope.ex4 forms below the 0.00 signal level, it is an indication that we have more sellers than buyers in the market, hence an exit or take move is appropriate.

Sell Entry Rules

Initiate a sell order if the following rules or conditions take precedence:

  1. If the blue line of the Alligator indicator crosses its lime and red lines top downwards as shown on Fig. 1.1 with price trading somewhat below the lines, it is a trigger to go short. Meanwhile, if the line of the Big Trend custom mt4 indicator gets painted tomato, price is said to be experiencing bearish momentum i.e. a sell trigger.
  2. If the red and gray histogram of the TmaSlope.ex4 custom mt4 indicator aligns below the 0.00 signal level, it is a signal to sell the pair of interest.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit is the following gets displayed on the activity chart:

  1. If the blue line of the Alligator indicator crosses its lime and red line bottom up, while the line of the Big Trend custom mt4 indicator gets painted light blue, it is a signal to exit or take profit straight away.
  2. If the histograms of the TmaSlope.ex4 forms above the 0.00 signal level, it is an indication that we have more buyers than sellers in the market, hence an exit or take move is appropriate.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Alligator is an indicator by Bill Williams, introduced in 1995, the indicator is comprised of three lines that are overlaid on the activity chart.

The lines represent the jaw, the teeth and the lips of the Alligator.

Traders tend to use this indicator to gauge trend and its possible direction.

The Big Trend.ex4 custom mt4 indicator is trend following indicator that paints its line light blue (bullish) and tomato (bearish) on the chart window.

The TmaSlope.ex4 indicator is one of the variant of the triangular moving average (TMA), hence it is a double smoothed indicator that is deployed defining price over a specific given number of price bars.

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