The Sidus Approach

Indicators used:

• EMA (18)

• EMA (28) – red channel

• WMA (5)

• WMA (8) – blue channel

Key conditions: the analysis timeframe should be at least M30 and the transaction support timeframe should be at least H1.

BUY conditions (all conditions must be met):

• WMA (5) and WMA (8) cross the red channel from bottom to top

• A preliminary crossing of WMA (5) and WMA (8) lines strengthens the buy signal

SELL conditions (all conditions must be met):

• WMA (5) and WMA (8) cross the red channel from top to bottom

• A similar crossing of WMA (5) and WMA (8) lines strengthens the sell signal

Exit criteria: exit the trade after the blue lines cross or after the red channel breaks down in the opposite direction.

Exercise:

Open a chart with the M30 timeframe for analysis and H1 for transaction support. Apply EMA (18) and EMA (28) as the red channel, and WMA (5) and WMA (8) as the blue channel with standard settings.

Identify a BUY signal when both WMA (5) and WMA (8) cross the red channel from bottom to top, and a preliminary crossing of the WMA (5) and WMA (8) lines strengthens the buy signal. Enter a long position and set a stop-loss below the recent swing low. Monitor the trade and exit when the blue WMA lines cross each other or the red channel breaks down in the opposite direction.

Repeat the process for a SELL signal by looking for WMA (5) and WMA (8) crossing the red channel from top to bottom, with a similar crossing of the WMA lines strengthening the sell signal. Enter a short position with a stop-loss above the recent swing high and exit based on the reversal criteria.