Crossover strategies are an important part of trading, even forex trading. Crossover strategies are simple to understand and follow. Crossover strategies are something that most traders, particularly new traders, would be familiar with.
A crossover strategy is a trading strategy that involves taking trades using two or more moving averages to cross over.
Let's say we have a crossover between two Exponential Moving Averages. We buy when the 7 EMA crosses over the 21 EMA. This is because we believe the market is turning bullish. We sell the pair if the 7 EMA crosses below 21 EMA because we believe that a downtrend has begun.
Crossover strategies can produce false signals. Sometimes, the new trend doesn’t last long enough or reverses quickly. This can lead to trader losses. Sometimes, crossovers don’t even begin a trend.
Octopus Cross Forex Trading Strategy: How to Trade?
We will use the Octopus 2 custom indicator. This indicator is great at determining direction bias and would also be useful in filtering crossover situations.
Three exponential moving averages will be used for our moving averages. This will enable us to filter more trades. We want the moving averages to be properly stacked before we enter any trade.
Timeframe Chart: 1 hour chart and higher
Currency Couple: any
Trade Session: any
You want to trade Forex with trusted brokers using the Octopus Cross Forex strategy? Register an account with one of the AtoZ Markets-approved forex brokers below:
How do I download and install an indicator?
These steps are required to install the indicator onto your MT4 platform.
- At the bottom of this post, click on the " Download indicator" button.
- Save the file to your hard drive.
- Move the files to the MT4>Indicator directory in the MetaTrader4 software program file directory.
- Start your Metatrader platform.
- Navigate to " Indiators."
- To apply the template, select " Octopus Cross Forex Trading Strategy".
Note: The indicator was created by T. Morris. AtoZ Markets has no copyrights to this trading tool.
Should Octopus Cross Forex strategy be used by you?
This article will help you understand the strategy before you begin trading.
Our in-house trade expert Dr Yury Sfronau is a PhD in Economics Sciences. He gives you daily forex, metals and cryptocurrencies signals to buy or sell.
Since 2015, his trading strategies that are based on nonlinear dynamic models have earned more than 65 000 pip profits. There are strong signals in several markets right now that you shouldn't miss.
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