SMA 5 Open Close with Momentum Filter Trading System

SMA 5 Open Close with Momentum Filter Trading System is a trend Momentu Strategy.

Setup Strategy

Pair: Majors, Nasdaq 100.

Timeframe: 5,10, 15, 30, 60, 240 minutes

Indicators:

1. MACD: 12,26,5 .

2. Stochastic: 5,3,3

3. EMA: 5 (applied to the close)

4. EMA: 5 (applied to the open)

1. 

   Trading Rules:

   • Avoid trading during news releases.

   • Risk: Set at 1% of account balance.

   • Take Profit: Determined based on market conditions, but typically triggered by reversal patterns or a crossover of the two EMAs.

   • Trade signals are confirmed only on closed candles/bars.

   Buy Signal:

   1. Stochastic crosses up from the 20 line and is not overbought.

   2. MACD closes higher than in the previous time interval.

   3. The signal candle/bar closes higher (bullish).

   4. The 5 EMA applied to the close has crossed above the 5 EMA applied to the open.

      • Stop Loss: Either the low of the previous candle or 20 pips (whichever is greater).

      • Close Position: When the 5 EMA applied to the close crosses back below the 5 EMA applied to the open.

   Sell Signal:

   1. Stochastic crosses down from the 80 line and is not oversold.

   2. MACD closes lower than in the previous time interval.

   3. The signal candle/bar closes lower (bearish).

   4. The 5 EMA applied to the close has crossed below the 5 EMA applied to the open.

      • Stop Loss: Either the high of the previous candle or 20 pips (whichever is greater).

      • Close Position: Based on price action.

   Remember to apply proper risk management and adapt the system to your own trading preferences. Happy trading!