Moving Average Wave Forex Trading Strategy

There’s no feeling better than the one you get when you see your positions in profits after initiating trades in the market, and this can only be possible when you have the right market approach, without which you are doomed as a retail investor in the global forex market.

The Moving Average Wave forex trading strategy is designed to dig the market for suitable entries and deliver consistent winning trades, a necessary ingredient for survival in the market.

The technical indicators that are responsible for this amazing trading strategy includes the EMA 5 10 34 custom indicator (used for price smoothening), Alligator and Elliott Wave Oscillator34 MT4 indicator both deployed as awesome trend finding and price exhaustion measuring tools.

Chart Setup

MetaTrader4 Indicators: EMA 5 10 34 crossoverl.ex4 (default Setting), Alligator.ex4 (Parameters Modified; Jaws period=28, Teeth period=12, Lips period=7), Elliott Wave Oscillator34.ex4 (default Setting)

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 blue upward pointing arrow of the EMA 5 10 34 custom indicator gets displayed below the candlesticks as seen on Fig. 1.0, a buy alert is said to be looming.
  2. If the blue line of the Alligator MT4 indicator intersects the lime and red lines in a bottom up fashion (see Fig. 1.0), price is said to be pushed higher i.e. a trigger to buy the stipulated forex pair.
  3. If the dark khaki histograms of the Elliott Wave Oscillator34 gets placed above the 0.00 level as depicted on Fig. 1.0, the prevalent market sentiment is said to be bullish, as such a buy alert is imminent.

Stop Loss for Buy Entry: Place stop loss 5 pips below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If a red downward pointing arrow of the EMA 5 10 34 custom indicator pops up above the candlesticks during a buy signal, an exit or take profit is advised.
  2. If price closes below the blue line of the Alligator MT4 indicator while a buy signal is ongoing, a bearish reversal is said to be lurking, hence an exit or take profit will suffice.
  3. If the dark khaki histograms of the Elliott Wave Oscillator34 indicator readjust to form below the 0.00 level during a buy signal, an exit or take profit is highly recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow of the EMA 5 10 34 custom indicator gets shown above the candlesticks as shown on Fig. 1.1, a sell alert is said to be on the horizon.
  2. If the blue line of the Alligator MT4 indicator intersects the lime and red lines in a top downward manner (check Fig. 1.0), price is said to be driven lower i.e. a trigger to sell the selected currency pair.
  3. If the dark khaki histograms of the Elliott Wave Oscillator34 gets placed below the 0.00 level as illustrated on Fig. 1.1, the dominant market sentiment is said to be bearish i.e. a trigger to go short.

Stop Loss for Sell Entry: Place stop loss 5 pips above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If a blue upward pointing arrow of the EMA 5 10 34 custom indicator pops up below price bars while a sell signal is running, an exit or take profit is recommended.
  2. If price closes above the blue line of the Alligator MT4 indicator during a bearish trend, a bullish reversal is said to be lying in wait, as such an exit or take profit will do.
  3. If the dark khaki histograms of the Elliott Wave Oscillator34 indicator realigns to form above the 0.00 level during a sell signal, an exit or take profit is highly advised.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The EMA 5 10 34 Crossoverl custom indicator is a modified exponential moving average indicator that gauges trend.

The Alligator is an indicator by Bill Williams, introduced in 1995, the indicator is comprised of three lines that are overlaid on the activity chart.

The lines represent the jaw, the teeth and the lips of the Alligator. Traders tend to use this indicator to gauge trend and its possible direction.

The Elliott Wave Oscillator34 is a 34 period, simple moving average (SMA) of prices depicted as a histogram aligned above and below a zero level.

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