The Holt Smoothing Trend forex trading strategy ensures that you stick to the safest market approach that is geared towards generating stable forex returns.
It’s a strategy that follows the short-and medium trend for any currency pair. It can be applied to any timeframe.
MetaTrader4 Indicators: ASCTrend.ex4 (Inputs Variable Modified; RISK=15), Holt_double_exponential_smoothing_trend.ex4 (Inputs Variable Modified; Estimate period=28.66)
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
Buy Trade Example
Long Entry Rules
Enter a buy order if the following indicator or chart pattern get put on display:
- If the blue upward pointing arrow of the ASCTrend custom indicator gets aligned slightly below price bars as shown on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the stipulated forex pair.
- If the gray line and lime green histograms of the Holt_double_exponential_smoothing_trend indicator breaks above the 0.00 level, a bullish signal is said to be looming.
Stop Loss for Buy Entry: Place stop loss 3-5 pips below the most recent swing low price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is ongoing, a magenta downward pointing arrow pops up above the candlesticks, more bulls are said to be leaving the market, as such an exit or take profit will suffice.
- If the gray line and orange histogram of the Holt_double_exponential_smoothing_trend MT4 indicator dips below the 0.00 level, it is a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the magenta downward pointing arrow of the ASCTrend custom indicator gets aligned marginally above price bars as depicted on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the currency pair of interest.
- If the gray line and orange histograms of the Holt_double_exponential_smoothing_trend indicator dips below the 0.00 level, a bearish signal is said to be imminent.
Stop Loss for Sell Entry: Place stop loss 3-5 pips above the most recent swing high price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If while a sell signal is running, a blue upward pointing arrow pops up below the candlesticks, more bears are said to be leaving the market, as such an exit or take profit will do.
- If the gray line and lime green histogram of the Holt_double_exponential_smoothing_trend MT4 indicator rises above the 0.00 level, it is a trigger to exit or take profit immediately.
Sell Trade Example
About The Trading Indicators
The ASCTrend.ex4 is a trend following indicator that uses magenta downward pointing arrows or aqua upwards pointing arrows to define sell and buy signals respectively.
The Holt_double_exponential_smoothing_trend.ex4 is a form of an “on-chart average like” custom indicator that can forecast trend.
The indicator oscillates above (buy) or below (sell) its signal level i.e. the 0.00 level.