Forex Strategy "Smart-2"

• Recommended Forex Broker who support MetaTrader 4 terminal.

Forex Strategy Smart -2 - indicator forex strategy that works well on the currency pair EUR/USD H4, but since the deal are not so often, you can sell and at intervals of M15 and H1 ( in my case currency pair is USD/CHF, time frame H1).

So, first of all, set to chart for the chosen currency pair following forex indicators:

1. Moving Average LWMA with 5, Linear Weighted Moving Average, apply to: Typical Price - HLC / 3 - choose the color blue;
2. Moving Average LWMA with 14 period, Linear Weighted Average, apply to: Typical Price - HLC / 3 - choose the color black;
3. Exponential Moving Average EMA with period 233, apply to: Close - choose the color of gold;
4. Indicator Stochastic Oscillator, %K: 12%, %D: 12, delay: 5, apply to: Close, exponential, so it is necessary to fix minimum: 0, maximum: 100, to establish additional levels of indicators: 20, 30, 70, 80.
5. Indicator MACD - Fast EMA: 5, Slow EMA: 14, MACD SMA: 5, must apply to: Weighted Close ( HLCC / 4); 
   If desired, instead of the MACD indicator can be used AO-MODERN.mq4 ( you can download below of this page).
6. Indicator Average True Rance with a period of 5 - ATR (5);

HOW TO SELL:

1. First of all, pay attention to the moving average EMA (233), if the price is below it - is considering a deal only to Sell;
2. Then, wait for the main signal from the intersection of the 2 moving averages: LWMA (5), crosses LWMA (14) from top to bottom - conclude a deal to Sell , without this segnal trading positions generally do not open and not covered!;
3. Then, pay attention to the confirmation signal from the indicator MACD, it's histogram ( bars) must cross it's zero level from the top to bottom!;
4. Make sure that the price at the time of the transaction is below the EMA (233) than the distante of 3 ATR ( you can see calculcation to the top picture);
5. You Should not sell if the slw Stochastic < 20, oversold zone;
6. Set Take-Profit at distances of 80 - 100 or 130 points;
7. Stop-Loss set at fixed value, such as 50-100 points ( depending on the secelted interval), set at the nearest local minimum, Or you can put it on the distance of 3 ATR ( see pictures);

FOR TRANSACTION ON BUY USING THE OPPOSITE RULE.




NOTE:  For a stable operation of forex strategy doesn't recommend the risk more than 2-5% of each transaction, according to the rules of Forex Money Management!

File to download:

• Indicator AOL-MODERN from: here ;
• Histogram ATR from: here ;
• Templates SMAR-2 from: here .