SMA 5 OPEN CLOSE WITH MOMENTUM FILTER TRADING SYSTEM

SMA 5 OPEN CLOSE WITH MOMENTUM FILTER TRADING SYSTEM

SMA 5 Open Close with Momentum Filter Trading System is a trend Momentu Strategy.
Setup Strategy

Pair: Majors, Nasdaq 100.
Timeframe: 5,10, 15, 30, 60, 240 minutes
Indicators:

1. MACD: 12,26,5 .
   
   
2. Stochastic: 5,3,3
   
   
3. EMA: 5 (applied to the close)
   
   
4. EMA: 5 (applied to the open)
   

Trading Rules:

• Avoid trading during news releases.
  
  
• Risk: Set at 1% of account balance.
  
  
• Take Profit: Determined based on market conditions, but typically triggered by reversal patterns or a crossover of the two EMAs.
  
  
• Trade signals are confirmed only on closed candles/bars.
  

Buy Signal:

1. Stochastic crosses up from the 20 line and is not overbought.
   
   
2. MACD closes higher than in the previous time interval.
   
   
3. The signal candle/bar closes higher (bullish).
   
   
4. The 5 EMA applied to the close has crossed above the 5 EMA applied to the open.
   
   • Stop Loss: Either the low of the previous candle or 20 pips (whichever is greater).
     
     
   • Close Position: When the 5 EMA applied to the close crosses back below the 5 EMA applied to the open.
     

Sell Signal:

1. Stochastic crosses down from the 80 line and is not oversold.
   
   
2. MACD closes lower than in the previous time interval.
   
   
3. The signal candle/bar closes lower (bearish).
   
   
4. The 5 EMA applied to the close has crossed below the 5 EMA applied to the open.
   
   • Stop Loss: Either the high of the previous candle or 20 pips (whichever is greater).
     
     
   • Close Position: Based on price action.
     

Remember to apply proper risk management and adapt the system to your own trading preferences. Happy trading!