Forex Smart" trading strategy
Forex Smart" trading strategy - is a very strong system of trading on the market, it can easily bring 4000-5000 pips of profit per month. Despite the simplicity of this strategiesit really works, and it works effectively!
Marketplace: ;
Indicators:
— Linear Weighted Moving Average – линейная взвешенная скользящая средняя, с периодом 8, сдвиг 0, применить к: средней цене (Typical Price — HLC/3) – красим в голубой цвет;
— Linear Weighted Moving Average – линейная взвешенная скользящая средняя с периодом 21, сдвиг 0, применить к: средней цене (Typical Price — HLC/3) – красим в золотой цвет;
— Parabolic SAR indicator – шаг — 0.0026, максимум 0.5;
— Stochastic Oscillator - period %K: 12, period %D: 12, deceleration: 5, prices: select Close/Close. The MA method should be selected "Exponential". Also you need to put "check marks" on - fix minimum: 0, fix maximum: 100. And it is also necessary to add two additional levels 60 and 40, and remove the level 50, if it is set.
— MACD indicator - Fast EMA: 8, Slow EMA: 21, MACD SMA: 1. Apply to : Weighted Close (HLCC/4).
Timeframes: H4;
Currency pair: EUR/USD;
Protective orders: StopLoss, TakeProfit.
Trading strategy "Forex Smart" is very visualized, which is extremely useful in moments of stressful hours of trading on the market . The resulting chart looks like this:
Trading signals to enter the market on the strategy "Forex Smart"
Blue moving average crosses the golden moving average, it is important that trading positions are not opened without this signal.
Then we look at additional signals. If Parabolic SAR indicator forms a support for the price (is under the price), then we open only trading positions on the purchase.
If the crossover of moving averages happened in the direction that is opposite to the parabolic SAR, and after that parabolic SAR changes its location during five closed candles (it is equivalent to twenty hours), then you can still open tradesbecause the trend has reversed.
If Parabolic SAR indicator forms a resistance for the price (is above the price), then we will open only trading positions on the sale.
MACD indicator will help you avoid false trading signals when making deals. It is necessary to wait until the crossing of the mooovers will be confirmed by the MACD indicator. Do not rush to open trades when only one signal appears.
Pay attention to Stochastic:
— не следует заключать сделку на покупку, если валюта перекупленна;
— не следует заключать сделку на продажу, если валюта перепроданна.
Торговые сигналы на выход стратегии «Forex Smart”
If you have made a deal and are in a trading position on the purchase, stochastic indicator has to break above 80 and then go down. And if it crosses the level of 60, it means that it is necessary to close the open position. If you have a trade and you are in a trading position on the sale - Stochastic indicator should break down the level 20, and after that go up and cross the level 40 from the bottom to the top.
If you see on the graph moving average crossing in the opposite direction (although there is little chance of this until the stochastic indicator crosses the indicated levels), you should close the trading position, as you have concluded a trading position on a false signal. It should be noted that this situation in this strategies is extremely rare.
Example of concluded deals on the same chart: +380 pips of profit for 4 deals (click to enlarge):
