Crossover strategies are all over the place when it comes to trading. It is one of the most commonly used and abused strategy. The most common indicator of crossover strategies is the moving averages.
MAs is the only indicators used for crossover strategies, there are other custom indicators that could be used to trade just the way you would use moving averages on crossover strategies. One of these is the Oracle Momentum Indicator.
The Oracle Momentum indicator is an indicator composed of two lines that could crossover each other. Given this characteristic, the indicator would be perfect to use for a crossover strategy. In fact, signals are generated as these lines crossover each other.
The HMA Dots indicator is basically computed the way a regular Hull Moving Average indicator is computed. The only difference is that instead of plotting lines, dots are being plotted.
Timeframe: 1-hour chart
Currency Pair: any major currency pair or cross currency pair
Session: any session
How to trade with HMA Dot Crossover Forex Trading Strategy?
This strategy is very simple. What we will be looking for is a confluence of signals between the Oracle Momentum indicator and the HMA Dots indicator. We enter trades whenever the two indicators point towards the same direction and exit when they point the other way.
Long Trade Setup
Entry
- A gold dot appears below the candle indicating a bullish signal
- The blue line crosses above the red line indicating a bullish signal
- Enter a buy market order on the confluence of both signals
Stop Loss
- Set the stop loss at the swing low below the entry candle
Exit
- Exit the trade on either of the two scenarios
- A brown dot appears indicating a bearish signal
- The blue line crosses below the red line indicating a bearish signal.
Short Trade Setup
Entry
- A brown dot appears above the candle indicating a bearish signal
- The blue line crosses below the red line indicating a bearish signal
- Enter a sell market order on the confluence of both signals.
Stop Loss
- Set the stop loss at the swing high above the entry candle
Exit
- Exit the trade on either of the two scenarios
- A gold dot appears indicating a bullish signal
- The blue line crosses above the red line indicating a bullish signal
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 screen.
- 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 “HMA Dot Crossover Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.
This article was updated by Samson Ononeme on August 12, 2020, and originally created on May 13, 2019.
