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Forex Trading Guide 2021: JMA System trading

Strategy 2 JMA System is best suited for the EURUSD currency pair on a 15 – minute interval (M15). Before starting trading, it is recommended to find key resistance levels, as well as support on the H1 period.

We set the following indicators on the chart:

1) Jurik Moving Average, period of which is 40
2) Jurik Moving Average, period of which is 80

We enter the market under the following conditions:

1) We open trades only in the direction of the JMA moving averages

2) The market is entered only according to the main trend

3) If the moving JMAs crossed in the morning (Moscow time from 03-00 to 12-00), then you can enter the market only after the moment when the price is corrected to the slow moving one with a period of 80.

There is one more rule for crossovers that occur in the morning: when there is no prevailing trend in the market, as well as a weak slope of the JMA and the averages have already crossed, then you can open a trade after the 7th bar closes. At the same time, not taking into account the bar where the JMA crossing took place.

You can open a deal after the 5th bar is closed in a situation when there was a sharp spurt on the chart, and the JMA slope was pronounced.

4) You need to open a deal immediately after the close of the bar, on which the crossing of two JMAs occurred, if the crossing of the moving averages occurred after 12-00 Moscow time. The price should not be further than 25 pips from the JMA (40). In the event that the price is located further, then you need to wait for a rollback, you should buy immediately after meeting the necessary conditions. It is not necessary to wait until the pullback bar closes. You
can conclude a deal immediately.

5) The signal should be ignored and not open positions if the fast JMA (40) is directed against the trend after the crossover. 

You can set stop loss at 30 points, and take profit from 60 points.

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