Combined MA Forex Trading Strategy

The Combined MA forex trading strategy can be used for intraday trading (or any other trading style), due to its ability to analyze the market based on your schedule.

This strategy helps you place your stop loss outside the reach of big market players.

Thereby allowing you stay much longer in the market, invariably making it possible for you to take advantage of profitable market swings.

Chart Setup

MetaTrader 4 Indicators: Combined_MA_Signal.ex4 (Input Variable modified; Signal = 40, Slow = true, FilterPoints = 10.0), Parabolic-close.ex4 (default setting), 24 EMA

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the Combined MA Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the green upward pointing arrows of the Combined_MA_Signal.ex4 custom indicator forms within the indicator window as shown on Fig. 1.0, price is said to be pressured higher i.e. a signal to go long. The light sea green line and histogram of the indicator also hovers above the 0.00 signal level, thereby supporting a bull’s market signal.
  2. If the blue line of the Parabolic-close custom indicator crosses the magenta line of the 24 EMA bottom up, with price trading somewhat above, the prevalent market signal is said to be bullish.

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:

  1. If a red downward pointing arrow forms within the Combined_MA_Signal.ex4 custom indicator window during a buy market, an exit or take profit is advised. The light sea green line and histogram also tends to break below the 0.00 signal level to support an exit or take profit trigger.
  2. If the blue line of the Parabolic-close custom indicator crosses the magenta line of the 24 EMA top downward, it is a trigger to exit or take profit without delay.

Sell Entry Rules

Enter a sell in the market if the following holds true:

  1. If the red downward pointing arrows of the Combined_MA_Signal.ex4 custom indicator forms within the indicator window as depicted on Fig. 1.1, price is said to be pressured lower i.e. a signal to go short. The light sea green line and histogram of the indicator also tends to hover below the 0.00 signal level, thus triggering a bears market.
  2. If the blue line of the Parabolic-close custom indicator crosses the magenta line of the 24 EMA top downward, with price trading somewhat below, the prevalent market signal is said to be bearish.

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 chart or indicator pattern gets displayed:

  1. If a green upward pointing arrow forms within the Combined_MA_Signal.ex4 custom indicator window during a sell signal, an exit or take profit is advised. The light sea green line and histogram also tends to break above the 0.00 signal level to further support an exit or take profit stance.
  2. If the blue line of the Parabolic-close custom indicator crosses the magenta line of the 24 EMA bottom up as seen on Fig. 1.1, it is a trigger to exit or take profit straight away.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Parabolic-close.ex4 custom indicator is an enhanced Parabolic SAR indicator that can be used in analyzing trending markets.

The Parabolic-close is constructed on the price chart in the form of a line.

It shares a lot of similarities with the Moving Average Indicator, but the only difference is that it moves with higher acceleration and may alter its position in relation to price.

The Combined_MA_Signal.ex4 is a modified moving average in the form of an oscillator.

It comes within its own indicator window, with red (bearish) and green (bullish) arrows designed to offer information on the direction of the trend.

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