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Intelligent Trading Startegy

Yuri | Published thu Jul 06, 2017 1:50 pm

Strategies with the use of the indicators are popular trading systems, which are widely used by Forex market traders. Quite often, these strategies are based on the use of 2 or 3 indicators, and a task of a trader is to determine a point when all the indicators give identical signals for entering the market. A strategy described below is based on the use of 5 indicators, which increases the accuracy of determining an entry point and consequently, makes this strategy one of the most profit-making. The other advantage of this strategy is its versatility, as it is applicable to all trading instruments. This strategy can be used on the timeframes starting from M15.

Indicators to be used:

  1. Moving Average (Period 8, Smoothed, HLC/3)
  2. Moving Average (Period 18, Smoothed, HLC/3)
  3. Parabolic SAR (0.026, 0.5)
  4. Stochastic  (12, 12, 5)
  5. MACD (8, 21, 1)

Conditions required for making a buy transaction (Fig.1):

  1. The line 8 MA is above the line 18 MA
  2. MACD histogram is above the zero
  3. One of Stochastic lines crosses the level 50 from bottom to top 


Fig.1

Conditions required for closing of the transaction: Parabolic SAR has changed direction from upward to downward.

Conditions required for making a sell transaction (Fig. 2):

  1. The line 8 MA is below the line 18 MA
  2. MACD histogram is below the zero
  3. One of Stochastic lines crosses the level 50 from top to bottom



Fig.2

Conditions required for opening of the transaction: Parabolic SAR has changed direction from downward to upward.

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