Triangular Moving Average Forex Trading Strategy

The currency trading market is quite unique and does offer traders the opportunity of being players in the largest marketplace in term of market capitalization.

The Triangular Moving Average forex trading strategy is here to help you make profitable trades in this huge market, with just basic indicators in place.

Chart Setup

MetaTrader4 Indicators: TMA.ex4 (Input Variable modified: Periods = 24), tma_slope_nrp_alerts.ex4 (default setting), buzzer.ex4 (Input Variable modified: Length = 24)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following holds true:

  1. If the green line of the TMA custom mt4 indicator crosses the line of the buzzer indicator bottom up, price is said to be pressured higher, hence a buy signal is advised.
  2. If the green histogram of the tma_slope_nrp_alerts.ex4 custom mt4 indicator aligns above the 0.00 signal level as seen on Fig. 1.0, price is said to be experiencing some upward thrust i.e. a buy signal is suitable.

Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following chart or indicator pattern gets displayed:

  1. If the green line of the TMA custom mt4 indicator crosses the line of the buzzer indicator top downward staying above the buzzer custom indicator and price trading somewhat below it, hence an exit or take profit is recommended.
  2. If the green histogram on the tma_slope_nrp_alerts.ex4 custom mt4 indicator diminishes to a point where coral histograms aligns below the 0.00 signal level, an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following rules or conditions hold sway:

  1. If the green line of the TMA custom mt4 indicator crosses the line of the buzzer indicator top downwards as shown on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the pair of interest.
  2. If the coral histogram of the tma_slope_nrp_alerts.ex4 custom mt4 indicator aligns below the 0.00 signal level as illustrated on Fig. 1.1, price is said to be experiencing some downward pressures, hence a trigger to sell the pair of interest.

Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following are seen on the activity chart:

  1. If the green line of the TMA custom mt4 indicator crosses the line of the buzzer indicator bottom up staying below the buzzer custom indicator and price trading somewhat above, hence an exit or take profit is recommended.
  2. If the histogram of the tma_slope_nrp_alerts.ex4 indicator aligns above the 0.00 signal level as seen on Fig. 1.1, it is a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The tma_slope_nrp_alerts.ex4 is an indicator designed after the triangular moving average (TMA), and is double smoothed indicator that used in defining price over a specific given number of price bars.

The buzzer indicator is a trend following technical study that defines bullish (lime) and bearish (red) market sentiments based on modified moving averages.

The triangular moving average (also referred to as the TMA) shares a lot of similarities with the moving averages, nevertheless, it is double smoothed i.e. it is averaged twice.

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