The currency trading market offers huge potentials for profits, but these can only become possible if you have the right approach to trading, which entails entering the market with a trading strategy that can decipher price actions.
The Moving Average Trend forex trading strategy is simple enough for newbies to adopt and can also fit into the trading plan for experienced folks.
Not minding your status in the market, everyone is up for the same thing, which is to make a return on their investments.
To help you achieve profitability, we added the forex-mt4-trend-indicator and Moving Average of Oscillator MT4 indicators to spice things up.
The blend allows us understand price in line with trend using the signals from the forex-mt4-trend-indicator, while the OsMA alerts us to reversal point.
MetaTrader4 Indicators: Moving Average of Oscillator.ex4 (Parameters Modified; Fast EMA=24, Slow EMA=30, MACD SMA=27), forex-mt4-trend-indicator.ex4 (Inputs Variable Modified; MaPeriod=28)
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
Initiate a buy order if the following indicator or chart pattern gets put on display:
- If the blue upward pointing arrow and candle-like bodies of the forex-mt4-trend-indicator gets aligned slightly below price bars as seen on Fig. 1.0, the market sentiment is said to be bullish i.e. a signal to go long on the selected fx pair.
- If the red histograms of OsMA MT4 indicator forms above the 0.00 level as shown on Fig. 1.0, it is a signal to go long on the desired currency pair.
Stop Loss for Buy Entry: Place stop loss 2 pips below trading support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If while a bullish trend is ongoing, the forex-mt4-trend-indicator displays a red downward pointing arrow placed slightly above the candlesticks, an exit or take profit should be promptly considered.
- If the histograms of the OsMA MT4 indicator realigns to form below the 0.00 level (see Fig. 1.0), 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 red downward pointing arrow and candle-like bodies of the forex-mt4-trend-indicator gets aligned marginally above price bars as seen on Fig. 1.1, the market sentiment is said to be bearish i.e. a signal to go short on the designated currency pair.
- If the red histograms of OsMA MT4 indicator are seen to form below the 0.00 level as depicted on Fig. 1.1, it is a signal to go short on the selected forex pair.
Stop Loss for Sell Entry: Place stop loss 2 pips above trading resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell signal is running, the forex-mt4-trend-indicator displays a blue upward pointing arrow placed somewhat below price bars, an exit or take profit should be rightly considered.
- If the histograms of the OsMA MT4 indicator realigns to form above the 0.00 level as illustrated on Fig. 1.1, it is a trigger to exit or take profit forthwith.
Sell Trade Example
About The Trading Indicators
The forex-mt4-trend-indicator is a trend indicator just as conveyed within its name, its red arrows signifying a sell, while its blue arrows connote a buy signal.