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Momentum Indie Forex Trading Strategy

Jul 15, 2019
Momentum Indie Forex Trading Strategy

You can now download the Momentum Indie Forex Trading Strategy for free on AtoZ Markets indicators gallery.

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.

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:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. 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.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.