Foreign Currency Exchange Trading – Forex Multiple Moving Averages and Momentum Trading Strategy

Multiple Moving Averages and Momentum Trading Strategy – A trading system is based on 4 indicators: MACD Candles, FX Graphics, FX CMA, and Momentum.

 
The main principle of trading in the financial markets – to understand the indicators when you open positions. Use these indicators to confirm a high probability of successful trades. This particular trading strategy will show you trading oppurtunities in two market conditions: trending market and volatile market.

 

Momentum Indicator

Momentum measures the rate of the rise or fall in stock prices. From the standpoint of trending, momentum is a very useful indicator of strength or weakness in the issue’s price.

  • Momentum Buy Signal
    When the Momentum indicator crosses above the zero line. The crossing of the zero line implies that the price of the stock, future, or currency pair is reversing course, either by having bottomed out or by breaking out above recent highs, a bullish signal.
  • Momentum Sell Signal
    Momentum indicator crosses below the zero line. A cross of the zero line can generally mean two things: the future, currency pair, or stock’s price has topped out and is reversing or that the price has broken below recent lows, either way, a bearish signal.
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FX Dolly Graphics Indicator

This indicator has had a total rebuild and now works with the new extra digit platforms. Some examples of the built in color displays are shown on the above screenshot. Dolly now also has Murrey Math 3 MA displays and Bands plus trading signals and many more features built into the code. Most important is the user needs to check the Allow DLL imports tab and put a Password into the Dolly inputs before it will work. Dolly Password = FREE_at_tsd

 

MACD Candles

This indicator has had a few revisions of the code and the MTF display can be altered for size and shifted anywhere on the chart. The most important update is to the candle color code, in this indicator there is no need to go into the inputs to alter the candle color width as with most colored candle indicators, with the latest update the candle size now updates on the first new tick or you can click on refresh, this version also has an option to use a fixed manual candle size if required as sometimes when many charts are displayed in a single window it is possible for the automatic candle size to be unable to compenstate for the candle size accurately.

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Forex Multiple MA & Momentum Trading Rules

 

To avoid false signals we recommend opening positions only after the candle is closed and signal is comfirmed. Opening a position in advance might fail if price gap occurs.

 

BUY Rules
  • Price upward above FX CMA (Multiple Moving Average Lines)
  • MACD Candles blue
  • FX Graphics trading signals –> BUY
  • Momentum crosses above the zero line
  • Price Trander indicator Upward

 

SELL Rules
  • Price downward below FX CMA (Multiple Moving Average Lines)
  • MACD Candles red
  • FX Graphics trading signals –> SELL
  • Momentum crosses below the zero line
  • Price Trander indicator downward

 

Note: The main principle of trading in the financial markets – to understand the indicators when you open positions. Use this trading system to confirm a high probability of successful trades.


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