Trading strategy “Elder’s Momentum” is one of Elder’s strategies, based on just two simple indicators: Momentum and the usual Moving Average. It is important for the strategy to strictly adhere to the rules for opening and closing a position. The strategy is multicurrency and is suitable for most currency pairs. We recommend the H1 timeframe for trading.
Set the necessary indicators on the chart:
1. Available in MT4 exponential moving average with a period of 19, built at the closing prices.
2. Momentum indicator with a period of 18, apply to close prices and set a level of 100.
The basic rules of the “Momentum Elder” strategy:
-We follow the hourly chart of the currency pair of interest. We look forward to the appearance of the first signal when Momentum (18) crosses the value 100.
– When the hourly candlestick closes completely above the average EMA (19) or at least 85% (in the case when the candlestick is several times larger than the previous candles), then open a long position at the moment of opening the next candle.
– Stop loss is set according to the following algorithm: we determine the closest moment on the chart, where Momentum (18) was below its own level 100 and we find the minimum price value for the selected period.
-Take profit: we fix the profit in one and a half to two times more than the set stop loss.
-In addition, it is imperative to exit the position if the indicator crosses the 100 level in the opposite direction.
Opening short positions is the opposite.