Directional Modified Moving Average Forex Trading Strategy

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Directional Modified Moving Average Forex Trading Strategy 1

When new traders first look at charts, they often see a meaningless movement of bars and lines going up and down. Opportunities are not easily detected by new traders because most still have not developed the skill to see it. But what are we looking for in the first place? How do traders see opportunities in a seemingly chaotic chart?

History repeats itself. This is the concept that allows technical traders to consistently make money out of the forex market. The market moves in patterns and cycles. These patterns and cycles present predictability. This allows seasoned traders to have an intelligent guess as to where the market could be going. Pour eux, whenever these patterns and cycles present themselves is an opportunity to make money.

The Directional Modified Moving Average Forex Trading Strategy allows traders to easily identify these cycles by using a set of technical indicators. These indicators could easily show the points where the trend cycles are reversing, helping traders make sense of an otherwise chaotic chart.

Moyenne Indice de mouvement directionnel

Table des matières

The Average Directional Movement Index (ADX) is a technical indicator developed by Welles Wilder. This indicator aids traders in determining trend direction based on momentum, as well as trend strength.

The Average Directional Movement Index is composed of the Plus Directional Indicator (+DE), Minus Directional Indicator (-DE) and the Average Directional Index (ADX) ligne. The Plus Directional Indicator (+DE) and the Minus Directional Indicator (-DE) are collectively called the Directional Movement Indicator (DMI).

The DMI is used to determine trend direction. This is based on the location of the +DI in relation to the -DI. Dans une tendance haussière, the +DI line would above the -DI line, while the -DI line would be above the +DI line during a bearish trend. En tant que tel, crossovers between the two lines are considered a trend reversal signal.

The ADX line represents trend strength. Technical traders interpret ADX figures above 25 as having a strong trend, while figures below 20 are considered to represent market conditions with no trend.

The i-AMA Optimum and i-AMMA Indicator

Although these indicators may have almost similar names, but they do differ in approaches. These two indicators are practically a modified version of a Moving Average However their modifications are aimed to provide a different characteristic compared to other moving averages.

The i-AMA Optimum is an Adaptive Moving Average (MAIS). This type of moving average is tweaked in order to provide for a less sensitive moving average line. This makes the line less susceptible to choppy market movements. This also makes the i-AMA an excellent trend filter moving average line.

The i-AMMA indicator on the other hand is an Average Modified Moving Average (MAIS). This version of a moving average is geared towards being more responsive to price action movements. This causes the line to hug price action much closer compared to other moving averages. It also provides a less lagging signal. These characteristics make the i-AMMA indicator an excellent signal line moving average.

Stratégie de négociation

This strategy is a crossover trend reversal strategy based on two moving averages which are designed for opposite purposes. The i-AMA Optimum indicator would be used as the lagging moving average while the i-AMMA indicator would be used as the leading moving average line. Trade signals are generated whenever the two lines crossover.

toutefois, the trade signals produced by the two moving averages above should be in confluence with the DMI lines of the ADX indicator. Bullish crossover signals should coincide with a bullish DMI crossover while bearish crossover signals should coincide with a bearish DMI crossover.

The ADX line would serve as a confirmation of the trade signal. Profitable trades would usually result in an ADX line going over 25. toutefois, we will not limit our trades based on it. This is because the market tends to start in contraction phase prior to a trend. During contraction phases, the ADX line usually is below 25.

Indicateurs:

  • Moyenne Indice de mouvement directionnel
    • Période: 28
  • i-AMMA
    • MA Période: 14
  • i-AMA-Optimum

Délai: de préférence de 4 heures et graphiques quotidiens

Paires de devises: paires majeures et mineures

Séance de négociation: Tokyo, Londres et New York

Acheter Configuration du commerce

Entrée

  • The +DI line (yellow green) should cross above the -DI line (wheat) indiquant une inversion de tendance haussière
  • The i-AMMA line (ligne continue) should cross above the i-AMA Optimum line (ligne pointillée) indiquant une inversion de tendance haussière
  • The bullish trend reversal signals should be somewhat aligned
  • Entrez un ordre d'achat à la confluence des conditions ci-dessus

Stop Loss

  • Régler la perte d'arrêt au niveau de support sous la bougie d'entrée

Sortie

  • Close the trade as soon as the DMI lines reverses
  • Close the trade as soon as price closes below the i-AMA Optimum line

Directional Modified Moving Average Forex Trading Strategy 1

Directional Modified Moving Average Forex Trading Strategy 2

Vendre Configuration du commerce

Entrée

  • The +DI line (yellow green) should cross below the -DI line (wheat) indiquant une inversion de tendance baissière
  • The i-AMMA line (ligne continue) should cross below the i-AMA Optimum line (ligne pointillée) indiquant une inversion de tendance baissière
  • The bearish trend reversal signals should be somewhat aligned
  • Entrez un ordre de vente à la confluence des conditions ci-dessus

Stop Loss

  • Régler la perte d'arrêt au niveau de la résistance au-dessus de la bougie d'entrée

Sortie

  • Close the trade as soon as the DMI lines reverses
  • Close the trade as soon as price closes above the i-AMA Optimum line

Directional Modified Moving Average Forex Trading Strategy 3

Directional Modified Moving Average Forex Trading Strategy 4

Conclusion

This trading strategy is a working crossover strategy that produces good quality trade signals. Many of the trade signals produced by this strategy could result in a trend. This would allow traders to earn from high yielding trades that could earn as much as 2:1 à 5:1 rapport de risque de récompense.

This strategy works well in a currency pair with much volatility and has a strong tendency to trend. Avoid trading this strategy in a currency pair or market which tends to be choppy or flat.

The DMI crossover also tends to be more responsive at times compared to the moving average lines. There would be times when a temporary retrace could cause a crossover on the DMI lines. These scenarios could cause a premature exit from the trade and cut profits shorter than it could have been. toutefois, it is better to stick to exit earlier rather than give back all the profits if the DMI crossover does result in an actual trend reversal. Traders who opt to hold the trade could make use of a smart trade management strategy, employing trailing stops and moving stop losses to breakeven.


Instructions d'installation Stratégies Forex Trading

Directional Modified Moving Average Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicateur(s) et un modèle.

L'essence de cette stratégie de forex est de transformer les données historiques accumulées et des signaux de trading.

Directional Modified Moving Average Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Sur la base de ces informations, les commerçants peuvent assumer la poursuite du mouvement des prix et ajuster cette stratégie en conséquence.

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guide d'ouverture de compte xm

Cliquez ici pour le guide d'ouverture de compte de trading XM étape par étape

How to install Directional Modified Moving Average Forex Trading Strategy?

  • Download Directional Modified Moving Average Forex Trading Strategy.zip
  • *Copiez les fichiers mq4 et EX4 à votre répertoire Metatrader / experts / indicateurs /
  • Copiez le fichier tpl (Modèle) à votre répertoire Metatrader / modèles /
  • Démarrez ou redémarrez votre client Metatrader
  • Sélectionnez Chart et calendrier où vous voulez tester votre stratégie de forex
  • Faites un clic droit sur votre carte de négociation et planer sur “Modèle”
  • Move right to select Directional Modified Moving Average Forex Trading Strategy
  • You will see Directional Modified Moving Average Forex Trading Strategy is available on your Chart

*Remarque: Toutes les stratégies forex viennent avec mq4 / fichiers EX4. Certains modèles sont déjà intégrés avec les indicateurs MT4 de la plate-forme MetaTrader.

Cliquez ici ci-dessous pour télécharger:

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