Forex trading strategy #30 (Leading Trading Strategy)
Submitted by User on January 27, 2010 - 20:12.
Strategy by Mennzz
Hi,
Here's a Leading Trading Strategy.
Hope you Enjoy!
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Time Frame: Daily, Weekly, Monthly.
Currency: Most currencies are accurate.
Indicators: EMA(3), MVA(4),CCI(14), STOCHASTIC(5,3,3).
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Thank you, Mennzz
I think, in order to hold it up together, and give a trade the room to develop, we should place our Stop below the swing that is corresponding to the lowest point of CCI before it hit the -100/100 level.
For exits I would, first of all, look for CCI to reach 0 level, where I would take out 1/2 of the profits. The rest will run till I find the next point to exit:
1. I would draw a trend line, preferably on CCI (by connecting peaks and valleys the same way we do it on price charts). When the CCI trendline is broken - it is time to exit.
2. Or, if it is not possible to draw a trendline on CCI as it approaches its 0 level (because CCI went vertical straight towards zero), then I would search for clues on the price chart, where, as a rule, I will see a strong steady advance taking place without retracements. In this case - my preferred exit will be based on the moving average (we can use 3 EMA here):
- when Long, as soon as candlesticks keep closing above the EMA - stay in a trade. Once the first candle closes below the EMA - exit. Opposite for the Short position.
2.a. If it was possible to draw a trend line on the chart, I would stick to it, and solve all the questions concerning exits: I will exit as soon as the trend line is broken by a candlestick that successfully closes on the opposite side of the trend line.
Best regards,
Edward
Where can we find The MVA indicator?
Dennis
Hi Dennis,
MVA appears to be simply a Moving Average.
I think we have to ask the broker for clarification on this.
FXCM confirmed that on their Markescope platform VMA means SMA (Simple Moving Average).
Best regards,
Edward
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