Muvings in Forex are moving averages, which are included in the formulas for building dozens of standard and combined indicators. On their basis, there are many strategies mercilessly criticized for many false signals. Partly rational grain in it. The market situation is changeable even on one currency pair, which means that the periods of indicators built on the test mode have to be corrected again. Another problem of moving ones is the rough averaging method, because the forex movings are most often used in pairs – fast and slow. And just in case they are insured with oscillators.
Muvings in Forex: a strategy for those who are willing to risk
Ideal for this strategy is difficult to call. And they are even sure that the version proposed by us can be improved and modified. Therefore, this strategy is recommended for those who understand the principles of operation of the sliders and are ready to show patience in order to find suitable settings.
The filter in this strategy is Classic Stochastic. The essence of the strategy is to make money on the fact that the price returns to the sliding envelope, demonstrating the stability of the market. MaEnv, constructed using LWMA (linear weighted moving average), was taken as a combined indicator. The movings in it in Forex are corrected for Fibonacci coefficients. In the strategy, they are set as 61.8, 161.8, 261.8, 361.8. The movings are built by folding three LWMAs (30, 50 and 100 with the construction of weighted closing quotes).
- timeframe – M5 (5 minutes);
- asset – EUR / USD;
- MaEnv – basic settings. For those who want to correct tactics, it is possible to change the settings of the sliders in the code. Regarding the indicator template, write in the comments – ready to share it with you for free;
- stochastics: period% K = 14, period% D = 3, deceleration = 3, price = Low / High, sliding simple, levels 20 and 80 (standard).
Conditions for opening a long position:
- the candlestick closes below the Red Bottom Line;
- while the price is below the Red Line, the oscillator should go down below level 20 (oversold zone);
- the price is below the lower Line in red to 10 candles (prerequisite);
- Stochastic is in the oversold zone of up to 10 candles;
- The signal candlestick closes above the lower red line.
On the next candle you can open a position with a foot length of about 10-20 points. The target profit level is 10 points. The transaction is also closed when the price reaches the orange line (-61.8 Fibonacci level).
Conditions for opening a short position:
- the candle closes over the top line in red;
- while the price is above the Red Line, the oscillator should go down to rise above the 80th level (overbought zone);
- the price is above the top Line in red with up to 10 candles (prerequisite);
- Stochastic is in the overbought zone with up to 10 candles;
- The signal candle closes below the upper red line.
The output is similar, only the Fibonacci level with a plus sign. The principle of trade in movings in Forex, we hope, is understandable. It is necessary to work on overbought and oversold zones, observing the gliders. In case of a change in the interval or currency pairs, the parameters of the movings in the indicator change only in the code. In part, this is a drawback, but it is easier to operate with an instrument for those who have not yet figured out periods. There are questions – ask them in the comments!