Strategy “Momentum Forex Trading”

Strategy “Momentum Forex Trading”

Recommended timeframes M15

Instruments: All.

Timeframes: M15 and above.

Trading hours: London and New York trading sessions.

Indicators:

• SMA 21  (simple moving average with the period 21),

• SMA 11 (simple moving average with the period 11),

• Momentum 30,

• RSI 14.

Conditions required for opening long positions:

The indicator Momentum crosses the level 100 from bottom to top; SMA 11 is above SMA 21, while the price is above the moving average lines.

Conditions required for opening short positions:

The indicator Momentum crosses the level 100 from top to bottom; SMA 11 is below SMA 21, while the price is under the moving average lines.

Exit points:

Buy transaction shall be closed when RSI enters the overbought zone. Sell transaction shall be closed when the indicator enters the oversold zone.