Reversal or Continuation? Thoughts?
Simple strategy using:
We use the Simple Moving Averages channel to determine if we have a Long or Short Signal.
The Momentum indicator is used as a confirmation indicator to confirm if we have a trend starting
We use the ADX indicator with both Positive and Negative Movement to determine both the Direction and the Strength of said trend. We also use it to confirm if the pair is Consolidating or not.
Here are the Rules:
Long entry: Closing Price must cross above High MA AND Momentum must be above 100% level
You can also use the ADX to determine the strength of the trend and when you should be pulling your trades out.
Long Exit: You should be pulling out if you see consolidation or whenever you feel confortable. This is mainly a personal preference. I personally prefer pulling out after about 50 pips and I'm seeing a lot of consolidation.
Short Entry: Closing Price Must be Crossing under the Low MA AND Momentum must be falling below 100% level
Short Exit: Refer to Long Exit.
If you have any questions, comments or ideas on improvements, feel free to leave a comment or send me a PM.
- Simple Moving Average: 70, High
- Simple Moving Average: 70, Low
- Simple Moving Average: 70, Close
- Momentum: 34, Close
- ADX w/ +DM & -DM: 14, Threshold 20
We use the Simple Moving Averages channel to determine if we have a Long or Short Signal.
The Momentum indicator is used as a confirmation indicator to confirm if we have a trend starting
We use the ADX indicator with both Positive and Negative Movement to determine both the Direction and the Strength of said trend. We also use it to confirm if the pair is Consolidating or not.
Here are the Rules:
Long entry: Closing Price must cross above High MA AND Momentum must be above 100% level
You can also use the ADX to determine the strength of the trend and when you should be pulling your trades out.
Long Exit: You should be pulling out if you see consolidation or whenever you feel confortable. This is mainly a personal preference. I personally prefer pulling out after about 50 pips and I'm seeing a lot of consolidation.
Short Entry: Closing Price Must be Crossing under the Low MA AND Momentum must be falling below 100% level
Short Exit: Refer to Long Exit.
If you have any questions, comments or ideas on improvements, feel free to leave a comment or send me a PM.
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