Momentum Forex Trading Strategy

Momentum Forex Trading Strategy

21 November 2017, 14:32
Dragan Drenjanin
0
14

Recommended timeframes M15

Instruments: All.

Timeframes: M15 and above.

Trading hours: London and New York trading sessions.

Indicators:

  • SMA 21  (simple moving average with the period 21),
  • SMA 11 (simple moving average with the period 11),
  • Momentum 30,
  • RSI 14.

Conditions required for opening long positions:

The indicator Momentum crosses the level 100 from bottom to top; SMA 11 is above SMA 21, while the price is above the moving average lines.

Conditions required for opening short positions:

The indicator Momentum crosses the level 100 from top to bottom; SMA 11 is below SMA 21, while the price is under the moving average lines.

Exit points:

Buy transaction shall be closed when RSI enters the overbought zone. Sell transaction shall be closed when the indicator enters the oversold zone.



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