Forex strategy «Forex Smart» — a sufficiently powerful forex trading system that is capable of bringing about a month 4000-5000 pips, as in spite of the simplicity of this strategy, forex trading, it really works well and it’s a fact! Trade on it being at 4-hour interval (since H4 interval less volatile than short-term charts, but still more lucrative), the ideal currency for transactions — EURUSD.
This forex strategy «Forex Smart» is prominently displayed, which is very useful at times stressful hours trading.
And so on for trade, we need the following indicators forex (they are all present in any trading platform Metatrader 4 immediately after it is installed):
- Linear Weighted Moving Average (Linear Weighted Moving Average) with a period of 8, the shift of 0, apply to: the average price (Typical Price — HLC / 3) — okraste blue.
- Linear Weighted Moving Average (Linear Weighted Moving Average) with a period of 21, the shift of 0, apply to: the average price (Typical Price — HLC / 3) — a golden color.
- Indicator Parabolic SAR (PSAR) — step — 0.0026, a maximum of 0.5
- Oscillator Stochastic. Period% K: 12, Period% D: 12, delay: 5. Price: select Close / Close.
- MA method: choose Exponential.
- Just need to put a «tick»: to fix at least: 0, fix a maximum of: 100
- And yet you want to add 2 extra level of 60 and 40, and a level 50 clean (if you have it installed).
- Indicator MACD — Fast EMA: 8, Slow EMA: 21, MACD SMA: 1
- Apply to: Weighted Close (HLCC / 4)
About the resulting graph looks like this:
Figure 1 (click on it to enlarge — opens in new window):
Trading Signals for entry into the market for forex strategy «Forex Smart»:
Blue moving average crosses the golden moving average — Without this signal trading positions can not be opened!
And then look for additional signals:
- If the Parabolic SAR indicator as it generates support for the price (under the price), then we will open a trading position to buy.
- If the moving average has occurred in a direction that is opposite Parabolic SAR, and after that, Parabolic SAR is changing its position during his 5 candles (which is equivalent to 20 hours), then open the transaction is still possible, because trend was reversed.
- If the Parabolic SAR indicator as it forms a resistance to price (the price is above), then we will only open trading positions.
- MACD indicator can help avoid false trading signals when entering into transactions. Should wait until the intersection of Moving Averages to be confirmed indicator MACD! We should not rush to open when a transaction of only one signal.
Just pay attention to the Stochastic:
1) One should not conclude a deal to buy if the currency is overbought
2) One should not conclude a deal to sell when the currency is oversold.
Trading signals to the output of the trading position of forex strategy «Forex Smart»:
If you made a deal and are in a trading position to buy — Stochastic indicator should break up the level of 80, and then go down. And if he crossed the level of 60, it means that you must close an open position.
If you made a deal and are in a trading position for sale — Stochastic indicator should knock down the level of 20, and then go up and cross the 40 level upwards.
If the graph you can see moving average in the opposite direction, although the chances were few until until the stochastics indicator did not cross these levels — should close a trading position, because you made a trading position on a false alarm, but the situation in the forex strategy is very, very rare.
Figure 2 — Example of transactions on the same schedule — 380 pips in 4 transactions (click on it to enlarge — opens in new window):
