DeMarker Smoothed Forex Trading Strategy

There are periods in the market where traders want to use short hold times as a means of generating small gains on small time frames.

Positions are initiated on short time frames, with speedy transactions that in most cases target around 10 pips for each trade.

The DeMarker Smoothed forex trading strategy is a quick intra-day scalping strategy that can be attractive when compared to long term trading strategies that requires waiting to make gains from positions which can take weeks, or even months.

The addition of the Cronex_T_DeMarker_GFC and Heiken_Ashi_Smoothed custom indicators makes the strategy quite potent and profitable, due to its precise signal setup patterns.

Chart Setup

MetaTrader4 Indicators: Cronex_T_DeMarker_GFC.ex4 (Inputs Variable Modified; DeMarker=36), Heiken_Ashi_Smoothed.ex4 (Inputs Variable Modified; MaPeriod=12)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: London, New York

Currency Pairs: Any pair with low spread

Download

Download the DeMarker Smoothed Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the lime candle-like bodies of the Heiken_Ashi_Smoothed custom indicator gets aligned somewhat below price bars as shown on Fig. 1.0, bulls are said to be pushing price higher i.e. a signal to buy the designated forex pair.
  2. If the blue upward pointing arrow and histograms (green & red) of the Cronex_T_DeMarker_GFC custom indicator stay above the 0.00 level as depicted on Fig. 1.0, price is said to be driven to the upside, as such a buy signal will suffice.

Stop Loss for Buy Entry: Place stop loss 5 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a buy signal is running the Heiken_Ashi_Smoothed custom indicator displays a red candle-like body, it is a signal to exit or take profit at once.
  2. If a red downward pointing arrow pops up within the indicator window (see Fig. 1.0), an exit or take profit is duly advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red candle-like bodies of the Heiken_Ashi_Smoothed custom indicator gets aligned somewhat above price bars as illustrated on Fig. 1.1, bears are said to be driving price lower i.e. a signal to sell the selected currency pair.
  2. If the red downward pointing arrow and histograms (green & red) of the Cronex_T_DeMarker_GFC custom indicator stay below the 0.00 level (see Fig. 1.1), a bearish reversal is said to be imminent, as such a sell signal will do.

Stop Loss for Sell Entry: Place stop loss 5 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell signal is ongoing the Heiken_Ashi_Smoothed custom indicator displays a lime candle-like body (refer to Fig. 1.1), it is a trigger to exit or take profit forthwith.
  2. If a blue upward pointing arrow pops up within the indicator window as depicted on Fig. 1.1, an exit or take profit is duly recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the DeMarker Smoothed Forex Trading Strategy

About The Trading Indicators

The Cronex_T_DeMarker_GFC.ex4 custom indicator however, is a modification of the DeMarker indicator with additional color indication based on the histogram.

The Heiken_Ashi_Smoothed.ex4 uses filled candle like bars either place above or below price bars to define trends.

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