Wave
momentum is a slow trend Momentum strategy based on moving averages,
stochastic oscillator and slow MACD but is very efective for trading.
Time
frame 30- 60 min, 12o min, 240 , min and 480 min.
Currency
pairs: Majors and Minors.
Indicators
setting:
exponential
moving average 6 period (median);
exponential
moving average 23 period (median).
Oscillator
Stochastic (21, 3,8);
MACD
(30, 60, 30).
Trading
Rules
Long
Entry
EMA
6 crosses above EMA 23, MACD indicates an uptrend, stochastic crosses
upward, buy as close to the 6 EMA as possible.
Short
entry
EMA
6 crosses below EMA 23, MACD indicates a downtrend, stochastic
crosses downward, sell as close to the 6 EMA as possible.
Exit
position
Stop
Loss: 20 – 30 or more depends by time frame and currecy pairs pips
Profit
Target: 50 - 60 or more pips.
Note:
when the stochastic oscillator and the MACD agree the entry can be
anticipated if the candle closes above or below the moving averages
but still have not crossed, because in the specific case that the
candle closes below / above the moving averages, the signal generated
by the two oscillators is strong and significant being configured
slow.
Wave
momentum is a very simple strategy to follow which aims to enter the
trend by filtering false retracement signals. The rhythms of the MACD
stochastic oscillator are very linear and seem waves.
In
the pictures Wave Momentum – Forex Strategy – trades examples.
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