Forex strategy on the xpMA indicator

Strategy on the xpMA indicator is quite simple to use, but very effective for making a deal on a trading signal. Since the strategy is an indicator strategy, its use will be recommended for beginners who do not yet have the practice of independent market forecasting.

Marketplace: Forex;
Currency pairs: Various, the strategy was optimized for GBPUSD;
Timeframe: H4;
Indicators : xpMA, BBands_Stop_v1, SMA(55), DPO(14);
Strategy: intraday;
Protective orders: StopLoss, Takeprofit.

Figure 1 shows a sample view of the trader's working area when trading according to this strategy.

Opening trades

Opening a buy deal:

– xpMA indicator signal in the form of a red arrow pointing upwards (as well as an audible signal).
– BBands_Stop_v1 indicator should turn over and be below the price on the chart, its color is blue.
– DPO(14) indicator - line indicator must cross and be located above the zero level.

Opening a deal to sell:

- xpMA indicator gave a signal in the form of a blue arrow pointing (as well as an audible signal).
- BBands_Stop_v1 indicator should turn over and be above the price on the chart, its color is red.
- DPO(14) indicator - The indicator line should cross and be below the zero level.

Particular caution should be exercised if you entered to buy, but the xpMA indicator line is located below the simple moving average SMA(55), the color of which is white. A similar situation occurs when you enter the market to sell. In these cases, the risks should be reduced.

It is desirable that at the conclusion of the deal to buy or sell the price bar closed above or below the moving average SMA (55). If we observe a clear rebound, as shown in Figure 2, then do not conclude a trading position or close the open trading positions.

Closing and support of trade deals

To close a trade is made after the appearance of reverse signals or immediately after the indicator BBands_Stop_v1 has changed its color to the opposite.

To be sure, I recommend using trailing stop (the size depends on the volatility of the market) and it is desirable to trade on the movement of the main trend.

Download a template for Metatrader 4 along with all the necessary indicators:

– xpMA indicator;
– BBands_Stop_v1 indicator;
– DPO(14) indicator;
– Template for trading on GBPUSD.