The Lang Strategy Trading System represents a simple moving average (SMA) based trend-following trading strategy for MT4.
Apart from SMA, it also combines exponential moving average crossover signals to spot highly potential trading opportunities. Besides, you’ll find a 14-period RSI at the bottom of the chart, showing bullish/bearish divergences and momentum signals.
The Lang Strategy Trading System applies 5, 10, 20, and 50-period simple moving averages to assess the overall trend. Besides, the red/green arrows signal current trends based on a crossover between 5 and 10-period EMA. After evaluating the market bias, use the RSI signal for validating trade entries.
The Lang Strategy Trading System has been built based on a moving average crossover strategy. The faster and slower SMA intersects each other to plot crossover trend signals. For instance, the 5 SMA moves above the 10 SMA, and the 20 SMA exceeds the 50 SMA simultaneously, indicating a strong bullish trend.
After getting an overview of the overall trend condition, determine the current trend condition using the EMA crossover signal. The pointing direction of the arrow indicates whether it is a bullish or bearish crossover.
We’ll also apply the RSI signal to examine the overbought/oversold conditions of the market. For example, we’ll only activate a buy order if the RSI value rebounds from the 30 (oversold) level. When the indicator value exceeds 70, we consider the market as overbought.
- 5 SMA moves above 10 SMA
- 20 SMA exceeds 50 SMA
- The price moves above all the moving averages
- EMA Crossover delivers an up arrow
- RSI(14) rebounds from 30
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- 5 SMA dives below 10 SMA
- 20 SMA also moves below 50 SMA
- The price drops below all the moving averages
- EMA Crossover signals a downs arrow
- RSI(14) declines from 70