We continue to consider strategies built on individual elements of the ATCF trading system. In brief, we recall that this system is a comprehensive market research based on spectral analysis and Fourier series. The resulting system is fundamentally different from the existing basic technical indicators and its constituent elements are called digital. In essence, these are the same technical indicators, but their formula is built not so much on an analysis of the historical period, as on mathematical-statistical methods. You can read more about other elements of this trading system here and here.
Fast Trend Line Momentum (FTLM) is one of the indicators that are part of the ATCF system. In ATCF, it shows the rate of decline or growth of fast and slow adaptive trend lines (FATL, SATL). According to the formula, it resembles the standard Momentum indicator, but it does not use the closing price of the bar, but mostly smoothed lines of the price chart.
Fast Trend Line Momentum: Oscillator Application Principle
This strategy is intraday and universal. It can be used for almost any currency pair. The only thing that should be avoided trading during the publication of statistics. Timeframe – H1, quite comfortable interval, even for novice traders. Reducing it is not recommended, although experiments are allowed.
Indicator template with basic settings you can get by specifying an email address in the comments.
Rules for opening a long position:
- FTLM on the chart displays three or more consecutive columns of red below “0”. Green bars should be missing.
- The last column of the series should be below the level of -0.002.
- After the previous conditions are met, a green bar appears. It would be even better if at the same time the candle on this column is growing (the closing price is higher than the opening price).
After the green bar is fully drawn, open the deal. Stop loss set short. The target profit level is 10 points, after which you can close the deal completely or insure it with a trailing.
Short position opening rules:
- FTLM on the chart displays three or more consecutive columns of green above “0”. Red bars should be missing.
- The last column of the series should be above the level of 0.002.
- After the previous conditions are met, a red bar appears. It will be even better if at the same time the candle on this column is declining (the closing price is below the opening price).
Entry and exit conditions are similar. Under each currency pair you need to select your strategy parameters. For example, you can reduce the timeframe to 30 minutes and change levels. The level of profit depends on the volatility, which tends to change.
Fast Trend Line Momentum is an example of a modified indicator that analyzes the market well. The number of signals is small, because the strategy should be used as an additional one or run on several currency pairs at once. If you like the strategy or have recommendations, write about it in the comments!