Trading currencies online does not require devoting all your time, nonetheless, a solid trading strategy is every trader’s sure pass to earning consistent profits.
We have therefore developed the Squeeze Break MA forex trading strategy to help traders get a sound view of price activity, with a view of making informed buy/sell decisions.
Chart Setup
MetaTrader4 Indicators: sMAMA.ex4 (default setting), Squeeze_Break.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
Download
Download the Squeeze MA Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy order if the following indicator or chart setup gets put on display:
- If the red line of the sMAMA.ex4 custom indicator intersects its blue line bottom up as shown on Fig. 1.0, price is said to be pressured higher i.e. a trigger to buy the selected currency pair.
- If the blue line of the Squeeze_Break.ex4 custom indicator rises and stays above the 0.00 level as illustrated on Fig. 1.0, the sentiment in the market is said to be somewhat bullish, hence a trigger to buy the designated forex pair.
Stop Loss for Buy Entry: Place stop loss 3 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions are in place:
- If price closes below the red line of the sMAMA.ex4 custom indicator, it is an indication of weaning bulls power i.e. a signal to exit or take profit at once.
- If the blue line of the Squeeze_Break.ex4 custom indicator dips below the 0.00 level during a buy signal, bullish pressure is said to be losing steam, hence the need to exit or take profit.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red line of the sMAMA.ex4 custom indicator intersects its blue line top downward as depicted on Fig. 1.1, price is said to be pushed to the downside i.e. a trigger to sell the specified fx pair.
- If the blue line of the Squeeze_Break.ex4 custom indicator dips and stays below the 0.00 level as seen on Fig. 1.1, the sentiment in the market is said to be somewhat bearish, hence a trigger to sell the selected forex pair.
Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price closes above the red line of the sMAMA.ex4 custom indicator, it is an indication of halting bears power i.e. a signal to exit or take profit without delay.
- If the blue line of the Squeeze_Break.ex4 custom indicator surges above the 0.00 level during a sell signal, bearish pressure is said to be losing steam, hence the need to exit or take profit forthwith.
Sell Trade Example
Fig. 1.1
Free Download
Download the Squeeze Break MA Forex Trading Strategy
About The Trading Indicators
The sMAMA custom indicator is a trend following indicator that is made up of two lines i.e. blue and red, and are attached to the chart window.
The Squeeze_Break custom indicator is a range and trend filter, which combines Bollinger Bands and Keltner Channels to capture moves from low to high volatility.