Forex Trading with Retracement Trend Following Strategy

Trading Strategies 0 18,864


Summary : 

Forex Trading with Retracement Trend Following Strategy is a combination of smoothed moving averages and envelope indicator.

 

Metatrader Indicators : 

- Moving average (3, Smoothed)

- Moving average (8, Smoothed)

- Envelope indicator period 5 deviation 0.5

- Envelope indicator period 5 deviation 1.0.
(The deviations of the second envelope indicator depends by volatility of the currency pair this is only a indicative value.)

 

Trading Conditions :

- Chart Timeframe : Daily Timeframe

- Currency Pairs : Any pairs.

 

Long Position Entry : 

1.     3 Moving average smoothed must cross up 8 Moving average smoothed;

2.     The price must pullback.

3.     Red candle with body must be within (high/low/close) the upper first red envelope.

4.     Place a pending order for the next day 4 pips above the high of the setup candle

5.      should be place on the previous swing. Move SL after 40-70 pips at -25 pips by entry point. Number of pips depends on the currency pairs.

 

Short Position Entry : 

1.     Long Position Entry conditions are reversed.

 

Exit Rules : 

- Profit Option 1 : Price touch the blue envelope band

- Profit Option 2 : moving average smoothed cross in opposite direction

 

How to install Files?

- Download *.zip file.

- Copy Indicators folder to your Metatrader Directory / indicators /

- Copy Template folder to your Metatrader Directory / templates /

- Copy Libraries folder to your Metatrader Directory / Libraries /

- Start or restart your Metatrader

- Select Chart and Timeframe where you want to test your forex strategy

- Right click on your trading chart and hover on “Template”

- Move right to select Template

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