Two Groups of SMA
Last updated
Last updated
Indicators:
Short group (red): with periods 3, 5, 8, 10, 12, and 15, applied to the closing price
Long group (blue): with periods 30, 35, 40, 45, 50, and 60, applied to the closing price
Key conditions:
The timeframe for analysis and control must be H4 or higher. Stop Loss is placed at the maximum or minimum of the signal candle, then trailed with a step of 30-70 points. Avoid trading during flat or speculative market conditions.
BUY conditions (all conditions must be met):
The long group (blue) trends upward, and the moving averages align in the following order: 30-35-40-45-50-60.
The short group (red) also trends upward, with the moving averages in the order: 3-5-8-10-12-15.
A Buy Stop order is placed at the high of the signal candle.
SELL conditions (all conditions must be met):
Both the long and short groups trend downward, with the moving averages aligned in their respective strict orders.
A Sell Stop order is placed at the low of the signal candle.
Exit criteria:
Exit the trade when the Stop Loss or Take Profit is hit, or at the close of the candle after a moving average crossover in the short group.
Open a chart with a timeframe of H4 or higher. Apply the SMA indicator multiple times: six for the short group with periods 3, 5, 8, 10, 12, and 15 (red), and six for the long group with periods 30, 35, 40, 45, 50, and 60 (blue).
For a BUY trade, wait for the long group to trend upward with the moving averages in the order 30-35-40-45-50-60 and the short group to align in the order 3-5-8-10-12-15. Place a Buy Stop order at the high of the signal candle and set a Stop Loss at the candle’s low.
For a SELL trade, wait for both groups to trend downward in their respective orders. Place a Sell Stop order at the low of the signal candle and set a Stop Loss at the candle’s high. Trail the Stop Loss with a step of 30-70 points as the trade progresses. Exit the trade when the SL or TP is reached, or at the close of the candle after a crossover in the short group.
