The Super EMA Breakout Forex Strategy is designed to catch price breakout using a technique that scopes the market for the right entry/exit zones.
This strategy is quick and aggressive, and traders can almost immediately start seeing their positions work out.
Chart Setup
MetaTrader4 Indicators: MadroGoldenfilter.ex4 (Input Variable modified; FasterMA=14), 48 EMA.ex4, 100pips Momentum.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 displayed:
- If price breaks above the magenta line of the 48 EMA, while also intersecting the blue and red lines of the 100pips Momentum custom indicator bottom up, price is said to be pressured higher i.e. a signal to buy the designated currency pair.
- If the goldenrod upward pointing arrow of the MadroGoldenfilter custom indicator is displayed within its indicator window, the momentum in the market is said to bullish, hence a signal to buy the forex pair of interest.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support or below the purple line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit once the following rules or conditions takes center stage:
- If price breakout below the magenta line of the 48 EMA indicator, it is a sign that denotes weaning bulls power, hence a trigger to exit or take profit at once.
- If a dark gray downward pointing arrow of the MadroGoldenfilter custom indicator pops up during a buy alert as shown on Fig. 1.0, it is a clear signal to exit or take profit at once.
Sell Entry Rules
Initiate a sell entry if the following holds true:
- If price breaks below the magenta line of the 48 EMA, while also intersecting the blue and red lines of the 100pips Momentum custom indicator top downward, price is said to be pushed lower i.e. a signal to sell the designated forex pair.
- If the dark gray downward pointing arrow of the MadroGoldenfilter custom indicator is displayed within its indicator window, the market sentiment is said to be bearish, hence a signal to sell the forex pair of focus.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance or above the purple line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds sway:
- If price breakout above the magenta line of the 48 EMA indicator, it is a sign that denotes halting bears power, hence a trigger to exit or take profit at once.
- If a goldenrod upward pointing arrow of the MadroGoldenfilter custom indicator pops up when the sell signal is still ongoing as seen on Fig. 1.1, an exit or take profit is highly advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The 100pips Momentum indicator offers bullish and bearish entry signals.
This is due to the indicator’s composition i.e. being made up of four technical studies with the ATR volatility indicator included.
The 48 EMA is an exponential moving average that has its period set at 48 and reduces the lag by adding more weight to recent price.
The MadroGoldenFilter indicator is made up of some arrows on the top row, stars like figures in the middle, colorful square box below that and main filtering tool at the bottom.
Only the arrows and the crossed square box at the bottom will be used in generating signals.