5 min MOMO Trader MT4 is a very simple and powerful forex trading strategy. Simple yet robust is what this forex trading system is about. The trade signals are based on trend indictor and momentum indicator.
As this trading system was developed to trade on the 5-minute chart, it is a scalping system. The ultimate goal of this system is to ride the trend of the market. Regardless of short-term trading or long-term trading, here, we always focus on trend-following strategy only. So it assumed that you have a prior understanding of market trend and how the market works.
5 Min MOMO Trader Overview
Have a look at a snapshot of 5 Min MOMO Trader system.
|Time Frame||Forex Pairs||Number of Indicators||Ratings|
- Moving Average 20
Moving average of 20-period is used in this system as a signal generator indicator. A simple way to use moving average as a trading signal is to buy when market price crosses above 20-period MA and sell when market is below 20-period MA.
- MACD TrueColored
MACD TrueColored comprises of macd histogram and oscillators. You can see blue oscillator and dotted red oscillator. You should buy only when blue oscillator is above the dotted red oscillator and vice versa.
Read More: Best Forex Strategy
5 Min MOMO Trader: Buy Parameters
- The forex market should be up trending.
- The market rate should cross above the moving average.
- MACD TrueColored indicator should form positive histograms.
- The Blue Oscillator of the MACD TrueColored indicator should be above the dotted red oscillator.
- Buy at the market rate when the above parameters are met.
- Put your stop loss below the recent support region.
- Book your profit when the market crosses below the moving average.
5 Min MOMO Trader: Sell Parameters
- Forex market should be down trending.
- Market rate should cross below the moving average.
- MACD TrueColored indicator should form negative histograms.
- Blue Oscillator of MACD TrueColored indicator should be below the dotted red oscillator.
- Sell short at the market rate when above parameters are met.
- Put your stop loss above the recent resistance region.
- Book your profit when market crosses above moving average.