The Fractal with Simple Moving Averages trading system is a trend-based price action strategy that utilizes moving averages to filter trade directions based on fractals.Time Frame: 5 minutes or higher. Pairs: Major currency pairs and indices.
Indicators
Fractal,
6 SMA, 12 SMA, 34 SMA.
Buy
When the 6EMA is above the 12EMA, which is above the 34EMA.
An Up Fractal needs to form above the EMAs for a LONG entry.
Initiate a buy trade when the price surpasses the Up Fractal by 2 pips.
Sell
When the 6EMA is below the 12EMA, which is below the 34EMA.
A Down Fractal needs to form below the EMAs for a SHORT entry.
Open a short trade when the price falls below the Down Fractal by 2 pips.
Exit
The trade will automatically exit after setting the stop loss just below the previous Up Fractal for short trades or just below the Down Fractal for long trades.
Take profit: minimum ratio stop loss 1:1.15.
Stop loss above/below the previous swing high/low.
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