The «Weekly trend» forex strategy, which we will look at today, is well suited for traders who cannot devote much time to trading, and according to this strategy, only one trade is made per week and even then not always: the calculation is that the trend that existed last week will continue, that is, the strategy is trending.
However, thanks to just one simple filter, there will be almost no transactions in sideways movements.
- Currency pair — GBP/USD. Before applying this strategy on other currency pairs, you should check it on history.
- Time interval – D1/H4.
- The strategy uses only one indicator exponential moving average with a period of 12 (EMA 12), displaying on D1.
Conditions for buying forex strategy «Weekly trend»:
1. The last daily candle of the past week closed above EMA 12.
2. After the breakdown of the last week’s high on the four-hour chart (closing of the H4 candle is obligatory), a Buy limit order is placed at the level of the broken level (higher by 3 — 7 points).
Stop loss is set behind the nearest minimum, but not less than 50-55 points and not more than 100-105 points. If the nearest low is closer than 50 points, then it is better to consider the previous low.
Take profit is equal to the size of the entire movement of the previous week.
After the price has passed half the distance to the target, we transfer the deal to the BU.
Also, if desired, you can use a trailing stop, but its size should not be too small. It may well approach half the distance to the target.
Conditions for selling according to the «Weekly trend» strategy:
1. The last daily candle of the past week closed below EMA 12.
2. After the breakdown of the low of the last week on the four-hour chart (closing of the H4 candle is obligatory), a Sell limit order is placed at the level of the broken level (lower by 3-7 points).
Stop-loss is set behind the nearest maximum, but not less than 50-55 points and not more than 100-105 points. If the nearest maximum is closer than 50 points, then it is better to consider the previous maximum.
Take profit is equal to the size of the entire movement of the previous week.
After the price has passed half the distance to the target, we transfer the deal to the BU.
Also, if desired, you can use a trailing stop, but its size should not be too small. It may well approach half the distance to the target.
Filters and additions to the forex strategy:
If during the daily interval before entering the market there was an intersection with the closing of EMA 12, then this week we no longer consider entry signals. This filter is very important and allows you to avoid entering the market at the time of a trend change or sideways consolidation.
The limit order must be activated within 6 — 8 candles after the breakout of the highs / lows of the previous week.
According to the classical rules, it is recommended to avoid entering the market if there is already an open trade at the moment, but with an aggressive approach to trading, this recommendation can be ignored.
Video forex strategy «Weekly trend»:
- Recommended to watch with English subtitles!
