The trading strategy is based on the standard Envelopes indicator and the custom indicators IDWma and 5SMAtrendstrenght. This strategy is trending. Used indicators generate signals to enter the trade in the direction of the main trend.
Characteristics of a trend trading strategy on the indicators Envelopes, IDWma and 5 SMAtrendstrenght .
- Platform: MetaTrader 4.
- Currency pairs: any major.
- Timeframe: H1 and above.
- Hours: around the clock.
- Broker: Forex4you , InstaForex , RoboForex , Fort Financial Services .
Used indicators and their parameters:
- Standard Envelopes indicator : parameters (period = 28; MA Method = Exponential);
- Custom indicator IDWma: parameters (MA_Period = 56);
- Custom indicator 5SMAtrendstrenght: parameters (Period = 20; Method = Exponential).
Trend trading strategy on the indicators Envelopes, IDWma and 5 SMAtrendstrenght . Rules of work.
Entry conditions for a long position:
The yellow line of the IDWma indicator crosses the blue and red lines of the Envelopes indicator from top to bottom. This indicates a trend change to an upward one.
5SMAtrendstrenght indicator bars turn green. The indicator confirms that bullish sentiment prevails in the market.
When these two conditions are met, we open a buy position.
Stop loss set below the previous minimum.
Take profit . We close the position when the opposite sell signal is formed: the IDWma indicator crosses the Envelope lines from the bottom up and the bars of the 5SMAtrendstrenght indicator turn red.
Entry conditions for a short position:
The yellow line of the IDWma indicator crosses the blue and red lines of the Envelopes indicator from the bottom up. This indicates a change in trend to a downtrend.
5SMAtrendstrenght indicator bars turn red. The indicator says that the market is dominated by bearish sentiment.
When these two conditions are met, we open a sell position.
Stop loss is set above the previous maximum.
Take profit . We close the position when the opposite buy signal appears: the IDWma indicator crosses the Envelope lines from top to bottom and the bars of the 5SMAtrendstrenght indicator turn green.
Consider the work of a trading strategy using an example.
Currency pair GBP / USD , chart H1.
At point 1, both conditions for opening a sell position are fulfilled. We open a deal on SELL at the price of 1.3905. Stop loss is set for the nearest maximum at 1.3996 (91 points). We close the position at point 2, when the opposite signal appears, at the price of 1.3790. Take profit amounted to 115 points.
Characteristics of a trend trading strategy on the indicators Envelopes, IDWma and 5 SMAtrendstrenght .
- Platform: MetaTrader 4.
- Currency pairs: any major.
- Timeframe: H1 and above.
- Hours: around the clock.
- Broker: Forex4you , InstaForex , RoboForex , Fort Financial Services .
Used indicators and their parameters:
- Standard Envelopes indicator : parameters (period = 28; MA Method = Exponential);
- Custom indicator IDWma: parameters (MA_Period = 56);
- Custom indicator 5SMAtrendstrenght: parameters (Period = 20; Method = Exponential).
Entry conditions for a long position:
The yellow line of the IDWma indicator crosses the blue and red lines of the Envelopes indicator from top to bottom. This indicates a trend change to an upward one.
5SMAtrendstrenght indicator bars turn green. The indicator confirms that bullish sentiment prevails in the market.
When these two conditions are met, we open a buy position.
Stop loss set below the previous minimum.
Take profit . We close the position when the opposite sell signal is formed: the IDWma indicator crosses the Envelope lines from the bottom up and the bars of the 5SMAtrendstrenght indicator turn red.
Entry conditions for a short position:
The yellow line of the IDWma indicator crosses the blue and red lines of the Envelopes indicator from the bottom up. This indicates a change in trend to a downtrend.
5SMAtrendstrenght indicator bars turn red. The indicator says that the market is dominated by bearish sentiment.
When these two conditions are met, we open a sell position.
Stop loss is set above the previous maximum.
Take profit . We close the position when the opposite buy signal appears: the IDWma indicator crosses the Envelope lines from top to bottom and the bars of the 5SMAtrendstrenght indicator turn green.
Consider the work of a trading strategy using an example.
Currency pair GBP / USD , chart H1.
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