Indicator forex strategy is simple enough, but nevertheless requires a clear run all the rules on the conclusion and the transaction and uses all the standard indicators forex that are installed by default in any trading platform MetaTrader 4: 3 moving average EMA, and the ADX indicator Parabolic — PSAR.
Trading on the indicator forex strategy conducted in the range H4 and any currency pair.
- At the 4-hour price chart with 3 exponential moving averages EMA:
- 12-day exponential moving average EMA on Open, select the color red.
- 5-period exponential moving average EMA on Close, the color of her chosen white.
- 9-day exponential moving average EMA on Close, the color of her chosen yellow.
- Parabolic SAR indicator with the standard settings.
- Forex Indicator ADX (Average Directional Movement Index), the period of 9 to Close, ID — selected green,-ID — selected red.
Conclusion of the transaction on the indicator forex strategy for sale:
It is necessary that satisfied all 3 rules:
1) wait until the close of the bar at the first intersection at the cost of the 2 moving average EMA (red and white) down, waiting for the appearance of the second bar to confirm this intersection. In this case, EMA 12 should be above the EMA 5.
2) the point indicator Parabolic (Parabolic) SAR should be placed on top of the price
3) line of the indicator forex ADX and line-ID should be above the line ID.
If all three conditions are met — are entering the market for sale.
Initial safety net stop-loss order is placed at around 55-70 pips (but preferably all 100 pips for GBPUSD), this stop-loss was obtained as a result of the experiment for this forex strategy. But as you can put it above the local maximum.
After the price went into a lucrative side, more than 30-40 pips, swap the order in the region of «zero», and then can use a trailing stop (including the trailing stop on a trip), its magnitude depends on the chosen currency pair and volatility in the market.
Entering the market at a signal to buy in this indicator forex trading strategy is carried out in exactly the same way as for sale, but all in turn.
Ie open a position to buy if the price for the first time crossed the removals and closed above them, and only at the opening of the next bar, if all the three rules:
1) wait until the close of the bar at the first intersection at the cost of the 2 moving average EMA (red and white) up, and the 5 EMA is above 12 EMA
2) point indicator Parabolic (Parabolic) SAR, located below the price
3) Forex Indicator ADX, (including the line + ID) shows the same direction — up, and are located above the-DI…
Initial safety net stop-loss is set in the amount of 55-70 pips (but preferably all 100 pips for GBPUSD). But as you can put it under a local minimum.
When leaving prices in a profitable direction for more than 30-40 pips, are putting orders in the region of «zero», and then can use a trailing stop (its magnitude depends on the chosen currency pair and the volatility in the market).
