Simple Trading System - indicator for MetaTrader 5

Original author:

Vitalie Postolache

A semaphore signal indicator based in the idea from "325 golden strategies" collection.

Strategy principle:

Buy:

1. The closing average calculated by the X day period should be higher than the similar average Y days ago;
2. The closing price should be lower than the closing price Y days ago;
3. The closing price should be higher than the closing price Y+X days ago. If all three conditions are met, then you should buy at the next day opening;
4. The closing price should be lower than the opening price (bearish candlestick).

Sell:

1. The closing average calculated by the X day period should be lower than the similar average Y days ago;
2. The closing price should be higher than the closing price Y days ago;
3. The closing price should be lower than the closing price Y+X days ago.
4. The closing price should be higher than the opening price (bullish candlestick).

If all three conditions are met, then you should sell at the next day opening; For example, if Х=20 and Y=3, then the 20-day closing average should be higher (for buying) than the average calculated 3 days ago. It simply means that the 20-day closing average goes up. Next, today's closing price should be lower than the closing price 3 days ago. It helps to determine if there would be a pullback before entering the market.

Finally, the price should also be higher than 23 days ago (even if it is lower than 3 days ago). That way we check for an increasing moving average. The method will work until a turn signal appears or the market goes too far against the position without a turn signal.

Fig. 1. The Simple Trading System indicator