Forex Strategy Momentum Pinball - another strategy by Linda Raschke. This strategy is simple and it's not long-term strategy, but nevertheless allows to make a profit on the FOREX market. Although just want to warn that the deals are not so often (because the signals are based on Daily interval).
This is the modified version of this strategy.
Strategy Momentum Pinball - multi-currency (ie, suitable for any currency pair), it trade using the signals of 2 intervals: D1 and H1.
To trade on it, we will need to attach to the chart only one indicator:
1) Momentum Pinball indicator with the following parameters:
- PeriodRSI = 3;
- PeriodROC = 1;
- just add the 70 and 30 levels.
Now let’s consider the conditions under which we will enter into the market in accordance with the rules of Momentum Pinball forex strategy.
A singall to buy if:
- At the daily closing bar MomPinboll indicator was below the oversold level 30.
- On the next day, wait for closing the first Hourly bar.
- Set the Buy Stop order higher than the maximum closed time candles are indented at least 10-15, maximum - 20 points (do not forget that trade is conducted on the basis of the completed/formed bars). The distance depends on the volatility of the currency pair, the higher it is, the greater the distance to pending order price.
- Next place a Stop Loss at the same distance as a pending order, but now from a minimum of a completed daily bar (from which we set Buy Stop order).
Usually the price on the market should not return to the Stop-Loss level, but if the price reached the Stop-Loss, you must place again the new order to buy at the price of the first order.
The sell signals are opposite!Input parameters:
- ExtPeriodRSI - Period of RSI indicator (Relative Strength Index);
- iExtPeriodROC - Period of ROC indicator (Rate of Change);
- Level_UP - Upper level of Momentum Pinball indicator;
- Level_DW - Lower level of Momentum Pinball indicator;
- TP - Take Profit (in percents of difference between the yesterday's price range=high-low);
- SL - Stop Loss (in percent of difference between the yesterday's price range = high-low);
- Lot - Trade volume;
- Deviation - Price deviation in points.