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Thursday, October 3, 2024

Forex Trading Guide 2021: Trading strategy “Momentum Elder”

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.

CT Forecast (Staff Writer)
CT Forecast (Staff Writer)https://citytelegraph.com/
I trade on Stocks (US) and Crypto. In my spare time I also share thoughts on price action & fundamentals, technical analysis with Citytelegraph Team. These thoughts are not any kind of financial advise, so please do you won research before investing.

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