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Forex trading strategy #32 (4hour MA set)


Submitted by V
Hi guys!
This strategy is based on 4hrs time frame.

EMA 89 and 144 applied to close for trend direction. When 89 is under 144, that means a down trend.

12WMA applied to close and 14SMA applied also to close.

Entry is done using 12WMA in the direction of the trend when price closes above or below it depending on if we are having a down trend or up and SL should be at 60-80pips while TP is 100-200pips.

When going against the trend, entry should be done using the 14SMA when price also closes above or below it depending on the 144 and 89EMA. In this chart, there lines shows entries using the 12wMA and 14SMA.

Hope this help out, suggestions are welcome.

v

Hi V,

I would like to ask what (WMA) is ?!!!!

thank you

Mohammad

WMA is an weighted moving average. Mohammad.
You can found it in the catagory of overlap study indicator category.

Thanks
Farhan Bukhari.

Which pair did you trade with this system ? How long you allready used this strategy & how much the drawdone ?

Thanks before.

Kind Regards;

Manus168


Screenshoot EOD, seems GBP/USD have a whipsawed with this Moving Average.

Kind Regards;

Manus168

Nice strategy.

jc.

Hi, can you explain in a bit more details on how you enter and exit the trade with the 12WMA and 14SMA?

Thanks and Regards

First step - the trend: 89 ema above 144 ema - we have an uptrend.

Second step: 12 WMA for buying in an uptrend. While 14 SMA for selling in an uptrend - counter trend trading.

Third step - entry rules: price closes above 12 WMA - Buy. (To see what it means "to close above the Moving average" please refer to a similar topic: 9 EMA entries). Same approach with 14 SMA when you sell.

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Returning to the trend: when you have 89 ema below 144 ema - it's a downtrend. this means you'll be looking to Sell when price closes below 12 WMA, and for counter trend trading you'll use 14 SMA to place buy orders.

Kind regards,
Edward

Cool strategy Edward. Could you advise us on the exit strategy for this such as stop loss and take profit?

Regards
Alvin