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Moving Average Angle Forex Trading Strategy

Dec 09, 2019
Moving Average Angle Forex Trading Strategy

You can now download the Moving Average Angle Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Trading in long term trends is one of the sustainable ways to increase profits in the forex market. This trading strategy allows an FX trader to efficiently trade the market by taking fewer trades with bigger profits squeezed from the market.

This Forex trading uses two indicators: 200 EMA and MA Angle indicator. Using this strategy, we will look to trade the long-term trend using the 200 Exponential Moving Average and an MA Angle indicator. The objective of this strategy is to take trades as the long-term trend changes and hold to the trade as long as possible. Thus, this strategy is useful for traders who hold positions for the long term.

200 EMA 

Moving Averages have many uses. Traders use it for a variety of reasons. Some traders use it to identify the trend. This could be done by identifying the location of the price in relation to the moving average. It could also be done by using multiple moving averages and observing how the moving averages are stacked. It could also be used to identify potential entry points or areas. This could be done by waiting for the price to touch the moving average and trade the bounce off it.

MA Angle

The MA Angle is an indicator that measures the slope of a moving average. The idea behind this is that as the price starts to trend, the slope of a moving average becomes steeper. The steeper the slope, the bigger the value that the MA Angle indicator plots. The steeper the slope, the stronger the trend tends to be.

Indicators:

  • 200 Exponential Moving Average (EMA) (Green)
  • MA Angle

Timeframe: 1-hour, 4-hour and daily charts

Currency Pair: any

Trading Session: any

How to Trade with Moving Average Angle Forex Trading Strategy?

This strategy aims to trade the shift of the long-term trend using the 200 EMA. This is done by using the 200 EMA as the trigger itself. The trade should be taken as price crosses the 200 EMA or if the price has just recently crossed the 200 EMA.

However, we should also align the midterm trend to the long-term trend. This is where the MA Angle comes in. The MA Angle is set at 50-periods, which is commonly used as a midterm trend filter. However, instead of using the traditional 50-period moving average, we will be using the slope of the 50 MA. This will be conveniently done by using the MA Angle custom indicator. Trades should be taken as the slope of the MA Angle indicator starts to steepen.

Buy (Long) Trade Setup

Entry

  • Price should cross and close above the 200 EMA
  • The MA Angle indicator should start to print lime green histogram bars
  • Open a buy order at the confluence of the above conditions

Stop Loss

  • Set the stop loss below the 200 EMA.

Exit

  • Close the trade as soon as the MA Angle indicator starts to print yellow histogram bars.

Sell (Short) Trade Setup

Entry

  • Price should cross and close below the 200 EMA
  • The MA Angle indicator should start to print firebrick histogram bars
  • Open a sell order at the confluence of the above conditions

Stop Loss

  • Set the stop loss above the 200 EMA.

Exit

  • Close the trade as soon as the MA Angle indicator starts to print yellow histogram bars.

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 “Moving Average Angle Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by James. 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.

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