Strategy of Forex Smart
Forex Smart 's strategy won the respect of many speculators who managed to apply it in practice. This task is capable of any participant of exchange forex trade system regardless of experience. You will need standard MetaTrader tools to implement it. Everyone would just like to take a look at the price chart, and predict how the course will change. But the realities are such that to earn on the currency exchange it is necessary to adhere to strict rules and regulations, otherwise strategy forex trading turns into a lottery.
In one article, we collected comprehensive information for you about Forex Smart. There is no need to study other materials in search of nuances that can influence success. Briefly, clearly, on the case, we will explain how to earn on the "smart system."
Many tried to improve the system under consideration by adding new elements, tried to improve an already excellent strategy. Friends, you don 't have to invent a bike, Smart strategy already contains everything to earn on the currency exchange and increase capital. You will only need to follow Forex indicator commands and practice, the good quality signals come quite often.
Description of Smart of strategy
A currency pair is any. Best results - EUR/USD;
Trading Terminal - Metatrader;
Time period - H1, H4;
Operation time - 24 hours a day;
Indicators in Forex Smart
You 'll need to activate five classic tools to work.
Weighted Moving Average (WMA8, WMA21);
Moving Average Convergence Divergence (MACD);
First, we add two linear-weighted moving averages with periods 8 and 21. There are many systems based on sliding lines, Forex Smart uses additional filters to improve the quality of entries into the deal. The simple intersection of WMA curves itself serves as a message of the onset of a trading moment. And in order not to get caught on a false signal, the Parabolic indicator is applicable.
Step – 0.0026;
Maximum – 0.5;
When Parabolic 's signal line is above price, the trend is considered bearish, meaning we are looking to sell the asset. When below - we consider exclusively purchases. You will often be able to observe situations where all the indicators stand in the perfect position, except Parabolic, which gives a contradictory command. In such a situation, the opening of the warrant should be refrained from.
Forex Smart 's strategy was named for its clever application of classic trading tools. Stochastic also plays a role. The crossing of signal lines is certainly important in the analysis of the stock exchange situation, but even more important is not how, but where.
K Period – 12;
D Period – 12;
Slowing – 5;
Levels 20, 40, 60, 80;
Smart strategy when making a forex trade system decision, recommends to pay attention to finding a price relative to overbought/resale zones. Sometimes you will see a situation where all indicators, including Parabolic, are in a good position, but the Stochastic indicator is either above 80 or below 20. This suggests the possible end of the Forex pulse and the proximity of the correction phase. Of course, lines K and D can strive for 0 or 100 indefinitely, but this rule should not be neglected.
We know about all the advantages of the MACD indicator, but in Forex Smart, it is just an additional filter. We do not want to downplay the importance of one of the most respected instruments on Forex, but the ideal situation for us will be when the histogram and the signal line cross the zero mark, with the signals of the other instruments formed.
Fast EMA Period – 8;
Slow EMA Period – 21;
Signal SMA Period – 2;
How does Smart strategy recommend opening a position?
1. WMA8 and WMA21 have crossed paths and are gradually expanding.
1.1. Intertwined muvings of trade signals are not supplied.
1.2. Moving averages are not used as support/resistance.
2. Forex 's warrant opens solely in the direction of the trend, which is determined by Parabolic.
2.1. When Parabolic is above price - consider the sale.
2.2. When Parabolic is below price - consider buying.
2.3. Parabolic can act as support/resistance.
3. The Stochastic lines have crossed and are above level 20 and below 80.
4. The MACD signal line crossed the histogram. The ideal situation for Forex Smart is when the line and histogram cross the zero level when generating a trading signal.
4.1. If other conditions are met, it is permissible for the histogram and signal line to fall below line 0 in sales.
4.2. If other conditions are met, it is permissible when the histogram and signal line are dropped above line 0 during purchases.
How does Smart strategy recommend closing a position?
The deal closes on the signals of the Stochastic indicator. This is due to the fact that thanks to the settings, the indicator responds most acutely to the change in quotations, but is not in a hurry to complete the current trend. Other indicators will also advise out of the deal, but Forex Smart 's strategy favours Stochastic teams. When lines K and D cross and the fast curve begins to fall below 60, exit from purchases should be considered. Exit sales when the fast line drops above level 40.
Common Forex Smart Strategy Errors
1. Often forex trade system ignore the rules intentionally or by inattention and enter the market when Stochastic is in an overbought/resale zone, above or below 80 or 20;
Forex Smart 's strategy provides a relatively large number of strategy forex trading signals on four-hour charts, and when all elements are built in the right order, you are highly likely to be able to predict developments. Market surveillance and practice will help you notice profit patterns in market noise.