"Traffic lights" is a really simple strategy and is based on several Moving Average indicators, as well as MACD. Instrument Recommendation - GPB / USD pair; Recommended time period - H1. This strategy can be used as an intraday or medium term one.
The following indicators are needed:
1. Moving Average (MA), period 120, SMA red.
2. Moving Average (MA), period 55, yellow.
3. Moving Average (MA), period 5, green.
4. Moving Average (MA), period 24, blue.
5. MACD (24, 52, 18).
Traffic lights
Traders can enter the market as soon as the MA has ranged similar to indicator traffic lights (red-yellow-green or green-yellow-red) and MACD confirms the signal. That means, if Moving Averages give a signal to sell , the MACD histogram must be in the negative zone. If not, the histogram must be in the positive zone .
Buy Position :
Sell Position :
Dashed MA with period 24, Exponential method and applied for High and Low serve to confirm flat markets. If the MA is not around by color and remains in the blue line, it is not recommended to open new trades.
To confirm the trend on the H1 chart the trader must check the direction of the price movement at a higher time period. Stop Loss orders must be placed at the High / Low the day before plus 20-30 pips. Take-profit must be twice as big as stop-loss, or trade can be closed after 4-5 days of fall / increase since opening.
The following indicators are needed:
1. Moving Average (MA), period 120, SMA red.
2. Moving Average (MA), period 55, yellow.
3. Moving Average (MA), period 5, green.
4. Moving Average (MA), period 24, blue.
5. MACD (24, 52, 18).
Traffic lights
Traders can enter the market as soon as the MA has ranged similar to indicator traffic lights (red-yellow-green or green-yellow-red) and MACD confirms the signal. That means, if Moving Averages give a signal to sell , the MACD histogram must be in the negative zone. If not, the histogram must be in the positive zone .
Buy Position :
Sell Position :
Dashed MA with period 24, Exponential method and applied for High and Low serve to confirm flat markets. If the MA is not around by color and remains in the blue line, it is not recommended to open new trades.
To confirm the trend on the H1 chart the trader must check the direction of the price movement at a higher time period. Stop Loss orders must be placed at the High / Low the day before plus 20-30 pips. Take-profit must be twice as big as stop-loss, or trade can be closed after 4-5 days of fall / increase since opening.
0 Response to "Strategy TRAFFIC LIGHT"
Post a Comment