This trading strategy is based on a custom trading indicator that determines momentum automatically. By trading with the momentum in conjunction with other parameters, we hope to be trading higher probability setups.
For this strategy, we will be trading momentum in confluence with a MACD custom indicator and the intermediate trend determined by the 100 Exponential Moving Average (EMA).
Indicators:
- BB MACD: bars count = 400000000
- Momentum: 28-period
- 100 EMA (Brown)
Currency Pairs: GBPUSD, EURUSD, GBPJYP, EURJPY, EURGBP
Timeframe: 5-minute chart
Trading Session: London Session
In trading, what we often see on the charts are two things, the distance of price movements, which is the y-axis, and the time elapsed, which is the x-axis. Movements with strong momentum often take up a lot of movement on the y-axis covering huge price differences in a very short time, within a few periods. This result to long and big candles. These hints are telltale signs of momentum.
How to trade with Momentum Indie Forex Trading Strategy
Buy (Long) Trading Setup Rules
Entry
- Price should be above the 100 EMA
- BB MACD should print a lime dot
- Momentum indicator should be above 100
- Enter a buy market order at the confluence of the above rules
Stop Loss
- Set the stop loss at the swing low support below the entry candle
Take Profit
- Set the take profit target at 2x the risk on the stop loss
Sell (Short) Trading Setup Rules
Entry
- Price should be below the 100 EMA
- BB MACD should print a magenta dot
- Momentum indicator should be below 100
- Enter a sell market order at the confluence of the above rules
Stop Loss
- Set the stop loss at the swing high resistance above the entry candle
Take Profit
- Set the take profit target at 2x the risk on the stop loss
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 “Momentum Indie 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.
