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Wednesday, July 28, 2021

Forex Trading Guide 2021: Trading system “Sandwich”

Forex Sandwich strategy is a multi-screen simple trading strategy based on the use of moving averages and Bollinger Bands. This strategy is suitable for most currency pairs and is based on 3 timeframes: М5, H1, H4.

In the strategy, the signal is the Bollinger Bands (BB) indicator. The condition for opening trades is confirmation of the Bollinger Bands indicator signal by moving average signals.

The essence of the strategy:

1. On the H4 chart, plot the EMA moving average (with a period of 20, apply to Сlose)

2. On the H1 chart, plot three EMA moving averages (with periods of 5,10,15)

3. Draw the Bollinger Bands indicator on the M5 chart.

4. Opening a long position:

• H4 chart – the price is above the moving average.

Forex Trading Guide 2021 Trading system Sandwich 1

• Chart H1 – average EMA (5) passes the moving averages with periods of 10 and 15
from bottom to top.

• Chart M5 – the price touched the lower Bollinger band (if the price is between the middle line and the lower one), or the price touched the middle line (if it is located between the middle and upper BB bands).

Forex Trading Guide 2021 Trading system Sandwich 2

5. For a sell signal – reverse conditions.

6. Close the deal when on H1 the average EMA with a period of 5 crosses the other moving averages in the opposite direction to the opening signal.

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