Forex trading strategy Traffic light is suitable for any currency trading instruments. The recommended timeframe for using the strategy is daily. To find the optimal entry points in the strategy, we use additional indicators, which can be downloaded below the description: RSI, Goldminer 2, modified HMA and Trend Master.
Using these indicators, the general trend in the market is determined and entry and exit points are found.
To determine the ideal entry point for selling, we look at the readings of the HMA indicator. We enter the market when the line of this indicator turns red, the Goldminer2 indicator should be of the same color. And the color of the RSI indicator can turn red or yellow.
To open a buy, the HMA indicator must be green, just like the Goldminer2 indicator. RSI color should be green or yellow.
For reliability, for all the indicators proposed above, you can also use the CCI indicator with a period of 14. If the value of this indicator is greater than zero, it is a signal to buy, and if it is less, to sell.
We exit the market as soon as the modified HMA indicator changes its color to the opposite one. The color of the Goldminer2 lines should also be reversed.
StopLoss should be set below the local minimum when buying, and higher when selling.