2MA Crossover Forex Trading Strategy

You can trade the market with ease knowing you have a reliable forex trading strategy in the form of the 2MA Crossover forex trading strategy.

It’s a trend following trading strategy that consists of an intelligent buy /sell arrows trading indicator and an oscillator for trend direction.

Chart Setup

MetaTrader4 Indicators: MACD_FlatMarketDetector.ex4 (default setting), 2MA Crossover_BO.ex4 (Input Variable Modified; MA1=8, MA2=12)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, Week

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets displayed:

  1. If the dodger blue upward pointing arrow of the 2MA Crossover_BO.ex4 custom indicator takes up position somewhat below price bars as shown on Fig. 1.0, price is said to be pressured higher i.e. a trigger to buy the currency pair of focus.
  2. If the dodger blue (sometimes mixed with red) histograms of the MACD_FlatMarketDetector.ex4 custom indicator is aligned above the 0.00 level as depicted on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to buy the designated forex pair.

Stop Loss for Buy Entry: Place stop loss below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions are in place:

  1. If the magenta downward pointing arrow of the 2MA Crossover_BO.ex4 custom indicator is formed somewhere above the candlesticks during a buy alert, it is pointing to weaning bulls power i.e. an exit or take profit is advised.
  2. If the histograms of the MACD_FlatMarketDetector.ex4 custom indicator readjust to form below the 0.00 level while a buy signal is ongoing, it is a trigger to exit or take profit forthwith.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the magenta downward pointing arrow of the 2MA Crossover_BO.ex4 custom indicator takes up position somewhere above the candlesticks as seen on Fig. 1.1, price is said to be pushed lower i.e. an alert to sell the currency pair of interest.
  2. If the red (sometimes mixed with dodger blue) histograms of the MACD_FlatMarketDetector.ex4 custom indicator is aligned below the 0.00 level as illustrated on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to sell the currency pair of interest.

Stop Loss for Sell Entry: Place stop loss above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the dodger blue upward pointing arrow of the 2MA Crossover_BO.ex4 custom indicator is formed somewhere below the candlesticks during a sell alert, it is pointing to halting bears power i.e. an exit or take profit is advised.
  2. If the histograms of the MACD_FlatMarketDetector.ex4 custom indicator readjust to form above the 0.00 level while a sell signal is ongoing, it is a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The MACD_FlatMarketDetector.ex4 is a modified Moving Average Convergence Divergence oscillator that is used to define trends and spotting noise in the market.

The 2MA Crossover_BO.ex4 custom indicator is literally a moving average crossover indicator depicted by magenta and dodger blue arrows for sell and buy signals respectively.

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