Forex Trading Strategy for Intraday with LWMA

The forex trading strategy that we will describe has been designed for movements within the day. It offers good financial results (forex signals performance) if followed strictly the trading rules.

The implementation and execution is very simple and easy. Can be used on all forex pairs.

The indicators included in this forex trading strategy is the following:

LWMA(5) – Linear Weighted Moving Average
SMA(10) – Simple Moving Average
Stochastic Oscillator (5, 3, 3)
RSI(14)
MACD(12, 26, 9)

Timeframe

The forex trading strategy is used in fifteen minutes (15min) timeframe with good results.

We execute trading orders in hours: 8 AM - 12 PM EST and 2AM - 4AM EST.

Buy Rules

We have a buy forex signal which will lead us to open a buy position when LWMA (5) crosses upwards the SMA (10) and the Stochastic is rising (solid line is above the dashed line) also the RSI is above from the level 50 and MACD is above the level of zero.

Stop Loss

We use a stop loss level between 20-30 pips.

Exit Rules from long position

When LWMA (5) cross the SMA (10) from top to bottom.

Sell Rules

We have a sell forex signal which will lead us to open a sell position when LWMA (5) crosses downwards the SMA (10) and the Stochastic is declining (solid line is below the dashed line) also the RSI is below from the level 50 and MACD is below the level of zero.

Stop Loss

We use a stop loss level between 20-30 pips.

Exit Rules from short position

When LWMA (5) cross the SMA (10) from the bottom upwards.

Important : All investors should know that any forex trading strategy before implementing in a real account needs to be tested in a demo account in order to be fully understood.

Also, all traders should be aware that extraordinary events occurring in the forex market very often, and is likely to alter the financial results of a forex trading strategy.