5 SMA Trend Acceleration Forex Trading Strategy

The 5 SMA Trend Acceleration forex trading strategy uses simple trend indicators as a filter to identify buy and sell trade setups with great profit potential.

Learn how this powerful trend following FX strategy works and download for free below:

Chart Setup

MetaTrader4 Indicators: Acceleration_Bands.ex4 (default setting), 5SMAtrendstrength.ex4 (default setting), ADX_MA.ex4 (Inputs Variable Modified; Ma_Period=24)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the 5 SMA Trend Acceleration Forex Trading Strategy

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 blue dots of the ADX_MA custom indicator gets aligned somewhat below the candlesticks as seen on Fig. 1.0, it is said to be a trigger to buy the asset of choice.
  2. If price breaks above the middle line of the Acceleration_Bands.ex4 custom indicator and trades along the upper outer band as seen on Fig. 1.0, the prevalent sentiment is said to be bullish i.e. a buy signal.
  3. If the lime bars of the 5SMAtrendstrength custom indicator gets displayed within the indicator window as shown on Fig. 1.0, it is a trigger to buy the specified forex pair.

Stop Loss for Buy Entry: Place stop loss below the lower outer band of the Acceleration_Bands indicator.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If a red dot of the ADX_MA custom indicator gets displayed during a buy alert, it is a signal to exit or take profit at once.
  2. If while a bullish signal is ongoing price is seen to break below the middle line of the Acceleration_Bands.ex4 custom indicator, an exit or take profit is advised.
  3. If the 5SMAtrendstrength custom indicator forms a yellow band as illustrated on Fig. 1.0 during a buy alert, it is a trigger to exit or take profit forthwith.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red dots of the ADX_MA custom indicator gets aligned somewhat above the candlesticks as shown on Fig. 1.1, it is said to be a trigger to sell the asset of choice.
  2. If price closes below the middle line of the Acceleration_Bands.ex4 custom indicator and trades along the lower outer band as depicted on Fig. 1.1, the prevalent sentiment is said to be bearish i.e. a sell alert.
  3. If the 5SMAtrendstrength custom indicator bar turns yellow during a buy alert, an exit or take profit is advised.

Stop Loss for Sell Entry: Place stop loss above the upper outer band of the Acceleration_Bands indicator.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If a blue dot of the ADX_MA custom indicator gets displayed during a sell alert, it is a signal to exit or take profit at once.
  2. If while a bearish signal is ongoing price is seen to close above the middle line of the Acceleration_Bands.ex4 custom indicator, an exit or take profit is advised.
  3. If the 5SMAtrendstrength custom indicator forms a yellow band as seen on Fig. 1.1 during a sell alert, it is a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Acceleration_Bands.ex4 custom indicator was developed by Price Headley to allow for the plotting of upper and lower envelope bands around a simple moving average.

The indicator gauges an instrument’s typical volatility over a setting of 20 bars.

The ADX-MA.ex4 indicator is an enhanced Average Directional Index (ADX) that is trend following with an integrated smoothing filter.

The 5SMAtrendstrength.ex4 custom indicator is used to gauge the strength of a trend.

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