Moving Average with Fractal Forex Trend Following Indicator

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Moving Average with Fractal Forex Trend Following Indicator

This trend following system uses basic indicators and requires a break of fractal to determine a trend. This can be use in a 5 minute timeframe and above and applicable in any currency pairs.

For intraday trading: Start Trading 9:00 GMT Stop Trading 22:00 GMT

Forex Indicators:

  • SMA 3 High (simple moving average);
  • SMA3 Low simple moving average);
  • JMA Starlight 100 or (100EMA);
  • MACD with EMA (10,20,1,7)

For Long Entry:

  • Up Fractal taken out (Broken)
  • Buy when Price touches 3 SMA Low
  • Exit when price touches 3 SMA High

For Short Entry:

  • Down Fractal Taken out (Broken)
  • Sell when Price touches 3 SMA High (Sell Limit at 3 SMA High)
  • Exit When Price Touches 3 SMA Low (Buy Limit at 3 SMA Low)

Filter

100 JMA and MACD with EMA.

  • Make sure to go long only when prices are above 100 JMA Starlight land MACD is greater than EMA.
  • Make sure to go short when prices are below 100 JMA starlight and MACD is less than EMA.

Take note of the stop losses:

  • TF 5 min:5 pips above or below SMA;
  • TF 15 min: 10 pips above or below SMA;
  • TF 30 min: 12 pips above or below SMA;
  • TF 60 min: 15 pips above or below SMA;
  • TF 240 min 20-25 pips above or below SMA;
  • TF 1440 min 30-40 pips above or below SMA.

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