Forex Retracement Trend Following Strategy
Forex Retracement Trend Following Strategy;
This is an daily trend following forex trading system, based on the two smoothed moving averages and the envelope indicator. I think, that for forex strategies trend following, the best moving averages are those smoothed.
Time Frame Daily.
Moving average smoothed 3 period;
Moving average smoothed 8 period,
Envelope indicator period 5 deviation 0.5;
Envelope indicator period 5 deviation 1.0.(The deviations of the second envelope indicator depends by volatility of the currency pair this is only a indicative value)
Rules:Trading in Trending with Retracement Trading System Daily
Setup step by step
Wait for the 3 Moving average smoothed cross up 8 Moving average smoothed;
Wait an pullback of the price, a red candle with body must be within ( high/low/close) the upper first red envelope band and lower first red envelpe.
This is the setup candle.
Place an pending order for the next day 4 pips above the high the setup candle and place a initial stop loss on the previous swing after 40-70 pips in gain move stop loss at -25 pips by entry point (the numbers of the pips depends by currency pairs).
first option when price touches the second blue envelope band
second option when the moving average smoothed cross in opposite direction,
third option with profit target predetermined 150-300 pips.
Buy conditions are reversed.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Retracement Trend Following Strategy?
- Download Forex Retracement Trend Following Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Retracement Trend Following Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.