Forex Trading with Retracement Trend Following Strategy is a combination of smoothed moving averages and envelope indicator.
Metatrader Indicators :
- Moving average (3, Smoothed)
- Moving average (8, Smoothed)
- Envelope indicator period 5 deviation 0.5
indicator period 5 deviation 1.0.
(The deviations of the second envelope indicator depends by volatility of the currency pair this is only a indicative value.)
Trading Conditions :
- Chart Timeframe : Daily Timeframe
- Currency Pairs : Any pairs.
Long Position Entry :
1. 3 Moving average smoothed must cross up 8 Moving average smoothed;
2. The price must pullback.
3. Red candle with body must be within (high/low/close) the upper first red envelope.
4. Place a pending order for the next day 4 pips above the high of the setup candle
5. should be place on the previous swing. Move SL after 40-70 pips at -25 pips by entry point. Number of pips depends on the currency pairs.
Short Position Entry :
1. Long Position Entry conditions are reversed.
Exit Rules :
- Profit Option 1 : Price touch the blue envelope band
- Profit Option 2 : moving average smoothed cross in opposite direction
How to install Files?
- Download *.zip file.
- Copy Indicators folder to your Metatrader Directory / indicators /
- Copy Template folder to your Metatrader Directory / templates /
- Copy Libraries folder to your Metatrader Directory / Libraries /
- Start or restart your Metatrader
- Select Chart and Timeframe where you want to test your forex strategy
- Right click on your trading chart and hover on “Template”
- Move right to select Template