Carter Moving Average Trading Strategy is one of the best ways to trade the forex market is by riding a trending market. This is because trading with the trend also means you are trading with fewer headwinds. Much of the market is trading going your direction and only a few are trading against it up until a very strong reversal signal occurs on strong support or resistance.
The Carter MA indicator is an indicator comprised of several Exponential Moving Averages (EMA), all of which are commonly used by traders. It is comprised of the 8, 21, 50, 100, & 200 EMA. The 8-period EMA is already quite too fast causing a whipsaw on the EMAs. We could identify trends on whether the 21, 50, 100 & 200 EMAs are stacked correctly.
Below is an example of a chart with a stacked EMA with the 21 on top and the 200 at the bottom. This shows how easy it is to identify trends via moving averages.
Timeframe: Any timeframe
Currency Pair: Any, preferably major pairs when scalping or day trading
Session: Swing trade could be any session, while day trading and scalping should be the session of the currency being traded (Ex: GBPUSD – London or New York session)
How to trade with Carter Moving Average Trading Strategy?
Knowing that we have our trend direction pretty much-nailed spot on, all we need to do is have a decent entry signal indicator.
For this strategy, we will combine the Carter MA indicator with the binaryarrows indicator, which identifies logical entries via fractals.
Buy Trade Setup
Entry
- EMAs should be stacked in the following order:
- 21 EMA (green): top
- 50 EMA (blue): 2nd from top
- 100 EMA (dashed red): 2nd from bottom
- 200 EMA (solid red): bottom
- Enter a buy market order on the close of the candle when the aqua upward arrow of the binaryarrows indicator appears=
Stop Loss
- Set the stop loss below the arrow
Exit
- Close the trade at the close of the candle when the red downward arrow of the binaryarrows indicator appears
Sell Trade Setup
Entry
- EMAs should be stacked in the following order:
- 21 EMA (green): bottom
- 50 EMA (blue): 2nd from bottom
- 100 EMA (dashed red): 2nd from top
- 200 EMA (solid red): top
- Enter a buy market order on the close of the candle when the red downward arrow of the binaryarrows indicator appears
Stop Loss
- Set the stop loss above the arrow
Exit
- Close the trade at the close of the candle when the aqua upward arrow of the binaryarrows indicator appears.
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How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the post.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Carter Moving Average Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by FxKings. AtoZ Markets does not carry any copyrights over this trading tool.
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