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Base 150 Strategy

Yuri | Published sun Jul 30, 2017 10:51 am

Instruments: EUR/USD, GBP/USD, USD/CHF, USD/JPY.

Charts: H1, H4, D1.

Indicators:

  1. MA(6);
  2. MA(35);
  3. MA(150);
  4. MA (365).

The point of the strategy is to spot early signs of a reverse and to open the position in the direction of a breakout. In order to determine the breakout 2 slow MA’s with 150 and 365 periods are used, and 2 fast MA’s with 6 and 25 periods are used to confirm a rebound.

When to open long positions:

  1. The price broke out the slow MA;
  2. MA(6) is on the same level or above the slow MA;
  3. After the price touched the fast MA, switch to a lower chart and wait for a reverse signal. It should be noted that all other MA touches are not important, the position has to be opened only after the very first rebound;
  4. For example, after receiving the signal on the H4 chart wait for the confirmation on the H1 and open the position after a resistance breakout. Stop-loss is placed behind the local high. Usually, it is the high of the breakout candle. Take profit – two times longer than stop-loss.

When to sell:

The price broke down the slow MA;

MA(6) is on the same level or below the slow MA;

After the price touched the fast MA, switch to a lower chart and wait for a reverse signal. It should be noted that all other MA touches are not important, the position has to be opened only after the very first rebound;

For additional profit, a trailing stop option can be used that would allow to catch longer trends. Also, take profit can be placed at important support and resistance levels. 

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