Forex Technical Analysis With Kaufman MTF Moving Average Trading System

Forex Kaufman Multi Time Frame Moving Average Trading System – is an trend following strategy. Only trades in the direction of the trend (remember trend is your friend). The direction of the trend is determined by the Kaufman V.3 indicator: line white > magenta line trend is up; line white < magenta line trend is down.

 
MTF Moving Average is an indicator that can display moving averages from different timeframes. It is meant to show you the moving average on a higher timeframe without having to open up a chart of that higher timeframe (such as plotting an hourly EMA on a 15 min chart).

 

Forex Kaufman MTF MA Trading Rules

 

Multi Time Frame (MTF) Analysis helps pinpoint the trend across timeframes. The reference chart should use a time frame lager than the reference chart. If momentum lines up on both charts, traders can consider new positions.

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Multiple time frame analysis is the use of multiple graphs and time frames in order to calculate the current direction of the market. This skill is particularly important to short term traders and scalpers that are looking to identify the direction of the trend, prior to entering into the market. Let’s get started!

Use this trading system in M15 time frame.

 

BUY Rules
  • Kaufman indicator Trend up and above H1 MTF Moving Average;
  • ZZ Window green;
  • FAC Recommendation buy only
  • ABC pattern arrow blue buy must be confirmed by:
  • FX Trender indicator>0;
  • If these conditions agreed to open a long position at the opening of the next bar.

 

 

SELL Rules
  • Kaufman indicator Trend down and below H1 MTF Moving Average;
  • ZZ Window red;
  • FAC Recommendation sell only
  • ABC pattern arrow red sell must be confirmed by:
  • FX Trender indicator < 0;
  • If these conditions agreed to open a long position at the opening of the next bar.

 

Exit position

Two methods:

  1. Scalping with re-enter: fast profit target that depends by currency pair and time frame or on the pivot point levels (for intraday trading);
  2. or exit position when kaufman indicator v.3 reverse trend.

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