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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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets displayed:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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
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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.