Hot Simpler Crossover Forex Trading Strategy

The Hot Simpler Crossover forex trading strategy is a buy/sell signals FX strategy built around an awesome trend following indicator. It tells you where to enter and exit the market.

The combination of 3 technical indicators offers us a trade setup that is consistent with the goals of market participants i.e. profit accrual.

Chart Setup

MetaTrader4 Indicators: 2MA Crossover_BO.ex4 (Inputs Variable modified; MA1=12, MA2=18), Simpler Trend.ex4 (Inputs Variable Modified; Average period=90), HotPips.ex4 (Inputs Variable Modified; CountBars=2147483647)

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

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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 green bars of the Simpler Trend custom indicators gets displayed on the activity chart as shown on Fig. 1.0, price is said to be taken to the upside i.e. a trigger to buy the designated currency pair.
  2. If the dodger blue upward pointing arrow of the 2MA Crossover_BO MT4 indicator pops up somewhat below price bars as indicated on Fig. 1.0, a trigger to go long is said to be looming.
  3. If the yellow upward pointing arrow of the HotPips custom indicator gets formed within the indicator window (see Fig. 1.0), price is said to be taken higher i.e. a trigger to go bullish on the currency pair of focus.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the Simpler Trend custom indicators displays a red bar during a bullish signal, it is an indication of weaning bulls power, hence an exit or take profit is advised.
  2. If the magenta downward pointing arrow of the 2MA Crossover_BO MT4 indicator gets positioned slightly above the candlesticks, an exit or take profit is recommended.
  3. If the HotPips custom indicator displays an aqua downward pointing arrow in the middle of a bullish alert as illustrated on Fig. 1.0, price is said to be making a bearish reversal, as such an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the red bars of the Simpler Trend custom indicators gets displayed on the activity chart as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
  2. If the magenta downward pointing arrow of the 2MA Crossover_BO MT4 indicator pops up slightly above the candles as specified on Fig. 1.1, a trigger to go short is said to be imminent.
  3. If the aqua downward pointing arrow of the HotPips custom indicator gets formed within the indicator window (refer to Fig. 1.1), price is said to be driven lower i.e. a trigger to go bearish on the forex pair of interest.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If the Simpler Trend custom indicators displays a green bar during a bearish alert, it is an indication of halting bears power, hence an exit or take profit is recommended.
  2. If a dodger blue upward pointing arrow of the 2MA Crossover_BO MT4 indicator gets positioned slightly below the candlesticks, an exit or take profit is advised.
  3. If the HotPips custom indicator displays a yellow upward pointing arrow in the middle of a sell alert as exemplified on Fig. 1.1, price is said to be making a bullish reversal, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The 2MA Crossover_BO.ex4 custom indicator is literally a moving average crossover indicator depicted by magenta and dodger blue arrows for sell and buy signals respectively.

The Simpler Trend.ex4 custom indicator is a trend indicator that comes along with a default period of 30, but is adjustable in line with the user’s preference.

The HotPips.ex4 custom indicator employs the yellow and aqua arrow in delivering buy or sell signals respectively.

In addition to this is the DeepSkyBlue histogram tainted at the top with red and at the bottom area with Lime, positioned above or below the 0.00 level to further mark bullish or bearish signals.

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