Forex Smart
Last updated
Last updated
Indicators:
(0.02, 0.2)
(8, 21, 1, close)
(5, 0, Linear Weighted, HLC/3)
(36, 0, Linear Weighted, HLC/3)
(12, 12, 5, low/high, LWMA, 20, 40, 60, 80)
Key conditions:
Major currency pairs are used. the timeframe is not lower than M30. The Parabolic SAR signal tends to be late. A trailing stop loss of 10-15 points is recommended.
BUY conditions (all conditions must be met):
the Stochastic indicator turns up below the level of 40
the moving average intersects from the bottom up
a gap occurs on the Parabolic SAR line
the MACD indicates a turn up
SELL conditions (all conditions must be met):
the Stochastic indicator turns down above the level of 60
the moving average intersects from the top down
a gap occurs on the Parabolic SAR line
the MACD indicates a turn down
Exit criteria: exit the trade by stop loss or when a reverse signal appears.
Open a chart of a major currency pair using a timeframe of at least M30. Apply the Parabolic SAR indicator with settings (0.02, 0.2), the MACD indicator with settings (8, 21, 1) based on the close price, the LWMA with settings (5, 0, Linear Weighted, HLC/3), the LMA with settings (36, 0, Linear Weighted, HLC/3), and the Stochastic oscillator with settings (12, 12, 5, low/high, LWMA, 20, 40, 60, 80). Ensure that you are trading during periods of stable volatility and avoid trading during flat and speculative periods.
Look for a BUY signal when the Stochastic indicator turns up below the level of 40, the moving average intersects from the bottom up, a gap occurs on the Parabolic SAR line, and the MACD indicates a turn up. Enter a long position on the next bar and set a trailing stop loss of 10-15 points below the entry point. Monitor the trade and exit when a stop loss is hit or a reverse signal appears.
Repeat the process for a SELL signal by identifying when the Stochastic indicator turns down above the level of 60, the moving average intersects from the top down, a gap occurs on the Parabolic SAR line, and the MACD indicates a turn down. Enter a short position on the next bar and set a trailing stop loss of 10-15 points above the entry point, exiting the trade when a stop loss is hit or a reverse signal appears.
