You get to a point in your trading career where you just know that some simple trading techniques are in most cases all a trader requires to be profitable.
The MTF MA forex trading strategy is a simple as you’ll want a trading system to be, with just two basic indicators, it scans the market for winning setups just like the complex systems that are available.
Chart Setup
MetaTrader4 Indicators: RainbowMMA_05.ex4 (default setting), MultiTimeFrameMovingAverages.ex4 (default setting)
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
Download
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Take long position(s) in the market if the following indicator or chart pattern gets displayed:
- If the pink lines of the RainbowMMA_05 custom indicator crosses the lines of the MultiTimeFrameMovingAverages.ex4 custom indicator bottom up as seen on Fig. 1.0, price is said to be pushed somewhat higher i.e. a signal to buy the currency of focus. The setup for a buy trigger is such that the candlesticks are trading above both indicator lines, with the pink lines staying at the bottom.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If the pink lines of the RainbowMMA_05 custom indicator intersects the lines of the MultiTimeFrameMovingAverages.ex4 custom indicator top downward, then price is believed to be taking a dive, hence it is advisable to exit or take profit at once (refer to Fig. 1.0).
Sell Entry Rules
Initiate a sell order if the following chart setup gets displayed:
- If the pink lines of the RainbowMMA_05 custom indicator crosses the lines of the MultiTimeFrameMovingAverages.ex4 custom indicator top downward as shown on Fig. 1.1, the sentiment in the market is said to be somewhat bearish i.e. a signal to sell the currency of interest. The trading setup for a sell trigger is such that the candlesticks are trading below both indicator lines, with the pink lines hovering at the top, while the lines of the MultiTimeFrameMovingAverages.ex4 custom indicator does stay frequently above price bars as well.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds true:
- If the pink lines of the RainbowMMA_05 custom indicator intersects the lines of the MultiTimeFrameMovingAverages.ex4 custom indicator bottom up during a sell alert, then price is believed to be making a U-turn to the upside, hence it is advisable to exit or take profit at once (refer to Fig. 1.1). In this case, all we need for an exit or take profit is the pink lines of the RainbowMMA_05 custom indicator to cut through the one of the line (red) of the MultiTimeFrameMovingAverages.ex4 custom indicator.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The RainbowMMA_05 custom indicator is the fifth GMMA forex series of eleven technical indicators largely dependent on the Guppy multi moving average.
The MultiTimeFrameMovingAverages.ex4 just as the name implies is a multi-time frame moving averages that can display minimum, middle and maximum timeframe on the same activity chart, thus the triple lines.