Holt Smoothing Trend Forex Trading Strategy

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.

Chart Setup

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

Download

Download the Holt Smoothing Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern get put on display:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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

Fig. 1.1

Free Download

Download the Holt Smoothing Trend Forex Trading Strategy

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.

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