Forex Trading Strategy with WMA and SMA

The forex trading strategy that are listed below are known to traders and under certain market conditions have satisfactory results

Such as always, so also in this forex trading strategy, when we use it, wish to acknowledge inside the price charts, that point in which, if we place a trading order in the market will have the chances on our side to make profit while at the same time the risk we take will be limited .

This forex trading strategy is an intra day forex trend following trading method.

The forex trading strategy is using the following technical indicators:

• 10 period WMA (Weighted Moving Average)
• 20 period SMA (Simple Moving Average)
• Slow Stochastic (10,6,6 (exponential))
• RSI (28)
• MACD (24/52/18 (exponential))

Buy Rules

Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.

• Buy the exchange rate when the 10 WMA crosses up past the 20 SMA,
• the Stochastic is signaling up (fast line above the slow line), 
• RSI > 50 
• the MACD histogram >0 and MACD averages crossed up.

Sell Rules

Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.

• Sell the exchange rate when the 10 WMA crosses down past the 20 SMA 
• the Stochastic is signaling down (fast line below slow line), 
• RSI<50 
• the MACD histogram <0 and MACD averages crossed down.

Profit Targets

Try and take profits at or near key levels: Try and take profits at exchange rates ending with 00, 20,

50, 80 e.g. GBP/USD 1.7180

Stop Loss

It is the discretion of each individual trader or under / over more recent level of support / resistance.

Considered to be essential to test any forex trading strategy on a demo account for quite some time so that it becomes fully understood before implementation in a real account.

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