Spaghetti FX Strategy: Innovative Application of Moving Averages
Spaghetti FX trading strategy is a clear demonstration that thanks to the innovative analysis of moving averages trading can be profitable, even using only them.
How SpaghettiFX strategy works
A very good idea was taken representing two sides of the market: long-term trades and short-term trades. With the help of two sets on moving averages with different periods we can clearly see how they are displayed. But they are not easy to trade on, because they are purely graphical representations of the two sides. And it is not easy to understand when there is an opportunity to enter, to exit, to trade or not to trade.
Поэтому, чтобы прочитать их неоспоримым образом были созданы два новых индикатора – Spaghetti FX и Spaghetti FX signal.
Spaghetti FX is indicator synthesized from two types of moving averages: fast and slow.
It is very important to emphasize that these indicators have no re-rating and are based on a single currency and a single time frame, so they can be easily verified.
Spaghetti FX indicator has four components:
- Red Line (Fast MAs) - displays the spread of the red moving average. If the red line is below 0, then the red MAs are pointing down (short positions). Conversely, if they are above the 0 line, it indicates that we will open long positions.
- Blue Line (Slow MAs) – как и выше, но для синей скользящей средней. Если синяя линия ниже 0, затем голубая MAs указывает вниз (короткие). Наоборот, если они находятся выше линии 0, указывает что они длинные.
- Light gray histogram (Spread) – показывает разрыв между двумя наборами скользящих средних. Чем она шире, тем сильнее и более стабильна тенденция. Это может также быть использовано в качестве индикатора тренда. Выше 0 мы имеем bullish trend, below 0 is bearish.
- Dark gray histogram (Amplitude) – показывает общий спред двух наборов скользящих средних. От быстрых MAs к медленным.
Spaghetti FX indicator signals
- Fat Blue – сильный бычий
- Blue – бычий
- Red – медвежий
- Fat Red – сильный медвежий
Experts ForTrader.org magazine believe that with the Spaghetti FX indicator, you will be able to understand what the two major market participants (long-term and short-term trades) are doing and how they relate to each other, which will positively affect the profitability of your trade.
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