Forex trading strategy #32 (4hour MA set)
Submitted by User on April 3, 2010 - 04:13.
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
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Hi Edward, when you said:
"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."
When you said same approach with 14SMA does it mean that when I sell the price must close above 14SMA or below?
Regards
James
Hi James,
We use 12 WMA or 14 SMA depending on whether we are in an uptrend or downtrend.
E.g. as per current strategy rules: "When going against the trend, entry should be done using the 14SMA". This means:
If you want to SELL in an Uptrend (means you'll be trading counter-trend), you use 14 SMA and your signal to Sell will be the price closing below 14 SMA.
Similar goes for Buying in a Downtrend:
(again you'll looking to trade against the trend), so you'll use 14 SMA and your signal to Buy will be the price closing above 14 SMA.
And in all other cases, when we trade with a trend: means Buying in an Uptrend, and selling in a Downtrend, we'll be using 12 WMA instead of 14 SMA.
Stop loss order = 60-80pips
Take profit target = 100-200pips
Best regards,
Edward
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