The Momentum Execute Line forex trading strategy is built around the MACD indicator and helps you keep trading at the most profitable trend of any currency pair.
It is able to do this by carefully examining price movements in a way that allows it to predict the trend, smoothen price and spot price divergence respectively.
Chart Setup
MetaTrader4 Indicators: 100pips Momentum_BO.ex4 (Default Setting), (T_S_R)-Execute Line.ex4 (Inputs Variable Modified; period=90), 2line_MACD.ex4 (Inputs Variable Modified; FastMAPeriod=20, SlowMAPeriod=36, SignalMAPeriod=27)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (24 hour trading)
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:
- If the lime line of the (T_S_R)-Execute Line custom indicator intersects the lines (red & blue) of the 100pips Momentum_BO MT4 indicator in a bottom up fashion as depicted on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated forex pair
- If the red dotted line of the 2line_MACD custom indicator intersects the blue line in a bottom up manner as seen on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy order will suffice.
Stop Loss for Buy Entry: Place stop loss 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 the lime line of the (T_S_R)-Execute Line custom indicator cuts through the lines (red & blue) of the 100pips Momentum_BO to go above during a bullish trend, it is an indication of weaning bulls power i.e. an exit or take profit trigger.
- If the red dotted line of the 2line_MACD custom indicator cuts through the blue line to stay above (see Fig. 1.0), price is said to be making a bearish reversal i.e. an exit or take profit trigger.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the lime line of the (T_S_R)-Execute Line custom indicator intersects the lines (red & blue) of the 100pips Momentum_BO MT4 indicator in a top downward manner as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected currency pair
- If the red dotted line of the 2line_MACD custom indicator intersects the blue line in a top downward fashion as labelled on Fig. 1.1, the general market sentiment is said to be bearish, as such a sell order will do.
Stop Loss for Sell Entry: Place stop loss 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 the lime line of the (T_S_R)-Execute Line custom indicator cuts through the lines (red & blue) of the 100pips Momentum_BO to stay below during a bearish trend (refer to Fig. 1.1), it is an indication of halting bears power i.e. a trigger to exit or take profit at once.
- If the red dotted line of the 2line_MACD custom indicator cuts through the blue line to stay below, price is said to be making a bullish reversal i.e. a trigger to exit or take profit immediately.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The 100pips Momentum_BO.ex4 is a custom MT4 indicator that delivers bullish and bearish entry signals.
This is as a result of the indicator’s composition i.e. being made up of four technical studies with the ATR volatility indicator included.
The (T_S_R)-Execute Line.ex4 or Terminate and Stay Resident Execute Line custom indicator is a moving average line that has a default period of 5, method set at 3 and price is at 0.
The 2line_MACD.ex4 custom indicator is a popular forex indicator that is comprised of three vital components i.e. MACD 12-period exponential moving average (12 EMA), 26 period EMA MACD histogram and the MACD signal line (9-period exponential moving average of the MACD).