MaHa breakout strategy based on moving averages
This trading system uses modified HeikenAshi candlesticks instead of standard candlesticks. Moving averages act as breakout levels. The direction of trade is chosen for the older TF.
Input parameters
- Currency pairs: any highly volatile currency pairs.
- Timeframe: working TF - M30, trading is carried out in the direction of the older trend on D1. TF M5 is used to confirm exit signals.
- Bidding time: any.
- Risk management: After calculating the stop-loss, choose such a volume of the lot, that the risk was not more than 2-5% of the deposit on one transaction.
The schedule should look like this:
Determining the direction of the trade
- Switch to the daily chart (TF D1) of the desired currency pair.
- Determine the value of moving average 10 EMA of the previous day (let it be C1).
- Determine the value of the moving average 10 EMA of the previous day (let it be C2).
- If C1 > C2, then we assume that the trend is upward. Otherwise, it is downward.
Signals indicating the opening of a long position (buying):
- There should be an uptrend on the older timeframe.
- On the M30, the candle breaks through the 50 SMA moving average and closes above it.
Signals indicating the opening of a short position (sale):
- There should be a downtrend on the older timeframe.
- On M30, the candlestick breaks through the 50 SMA moving average and closes below it.
Rules for setting a stop loss:
This trading system does not have a stop loss, but when opening a position, it is recommended to hedge yourself and set the stop close to the nearest maximum/minimum (depending on the direction of the trade).
Rules for exiting a deal:
- On the M5, the candle broke and closed below the 50 SMA.
- On M5, the candle broke and closed below the 10 EMA (conservative variant).
- On M5 the oscillator turned towards zero and a group of candles with a small body size appeared on the chart.
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