Forex H4 Swing Trading Strategy with Moving Averages and Trigger Indicator

High accuracy Forex H4 Swing Trading Strategy with Moving Averages and Trigger Indicator – It can be extremely difficult for new traders to finalize a trend trading strategy for trading the Forex market.

However, the good news is that most trend based strategies can be broken down into three different components. Today we are going to review the basics of a trending market strategy by identifying the trend, planning an entry, and identifying an exit.

The first step to trend trading is to find the trend!

There are many ways to identify the EURUSD trend pictured below, but one of easiest is through 10 MA high and low.

If price is stair stepping upwards that means price closed above 10 MA high, and the trend is up.

Conversely if price is stepping down below 10MA low this mean price is potentially declining in a downtrend.

Given the information above, traders should look for opportunities to buy the EURUSD in its current uptrend.

Pictured below we can see the chart graphically creating higher highs. If the trend continues, expectations are that price will remain support and new highs will continue to be created.

 

• Price closed above 10MA high
• Blue Trend Triggers Indicator upward
• Triger Indicator green above 0 line
• TrendTriger Mod ( Power Trigger) upward

 

• Price closed below 10MA low
• Red Trend Triggers Indicator downward below 10 MA low
• Triger Indicator red below 0 line
• TrendTriger Mod ( Power Trigger) down ward

 

When trading markets, there is always the potential to lose money.

That’s why when trading trends, it is important to know that they will eventually come to an end.

In an uptrend, traders may place stops under the previously identified swing low (higher low). In the event that price breaks under this value, it may symbolize that at least temporarily the EURUSD trend may be ending. Traders can exit any positions at this point through the use of a Stop Order.

• Risk Reward Ratio = 1:2 or higher