Trending trading strategy TMS Momentum

Trend Trading Strategy TMS Momentum is based on the Traders Dynamic Index indicator and a fan of moving averages. The trading strategy is discussed at forexfactory.com in on this topic.

Input parameters

• Currency pairs: any.
• Timeframe: any.
• Bidding time: any.
• Risk Management: After calculating the stop loss, choose this lot sizeto risk no more than 2-5% of the deposit per trade.

Setting up the price chart

1. Unpack the archive.
2. Copy the template into the templates folder.
3. Copy the indicators to the folder MQL4 -> indicators.
4. Restart the terminal.
5. Open the chart of the desired currency pair.
6. Install the template with the name TMS.

The schedule should look like this:

Signals indicating the opening of a long position (buying)

1. An upward trend is formed. The trend is determined either by the Dow theory and ZigZag indicator (rising local lows), or when a fan of three moving averages (orange at the bottom, green above, blue even higher) is properly opened
2. The price has rolled back to one of the moving averages. The longer the period of the moving average to which price rebounded, the better.
3. On the Traders Dynamic Index indicator, the green line crosses the red line from bottom to top.
4. Optional condition: the Momentum indicator (the lowest window) is pointing up.
5. A stop loss is placed under the nearest local minimum.

Signals indicating the opening of a short position (sale)

1. A downward trend is formed. The trend is determined by the declining local highs or when the fan of three moving averages (orange at the top, green below, blue below)
2. The price rolled back to one of the moving averages.
3. On the Traders Dynamic Index indicator, the green line crosses the red line from top to bottom.
4. Optional condition: the Momentum indicator is pointing down.
5. A stop is placed over the nearest local maximum.

Additional recommendations

• The slowest moving average (darkest blue) is used as a support/resistance level. It mainly serves as a reference point for closing a trade.
• An additional reinforcing signal is the divergence of price and the Traders Dynamic Index indicator or the Momentum indicator (or both).
• As a filter cutting off "incorrect" crossovers of the red and green lines on the Traders Dynamic Index indicator, you can take only crossovers at the upper/lower limits of the channel.

Download template and indicators

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