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A situation often arises when, after a strong impulse, the price will make a short-term rollback to the nearest resistance or support level before continuing its further movement. In the Base 150 strategy, moving averages will act as dynamic support and resistance levels. The trader's task is to open a deal in the direction of a breakout after the signs of a reversal appear.
For determining a significant breakout, the strategy uses a slow MA with 150 and to confirm a pullback, two fast MAs with periods of 6 and 25.
The main trading is carried out on the H4 timeframe, which is optimal for this strategy. Additionally, you should watch the entry confirmation on a smaller timeframe, which should reduce the percentage of false entries. The H1 timeframe is suitable for this.
Despite the fact that the system can give a certain number of losing trades, they are more than covered by profits from large trend movements.
You can download a strategy template with ready-made settings at the link below.
Buy entry rules
1. The price has broken the slow MA 150 upwards.
2. MA 6 is at or above MA 25.
3. After the price touched the fast MA 25, go to the timeframe below and wait for the reversal signal (It is important to note that subsequent MA touches are no longer taken into account; you need to open a deal only after the very first rollback).
The same is true for the first touch of one of the slow MA, or 25 MA.
After receiving a signal on the H4 chart, we are waiting for confirmation on H1 and enter when the resistance level is broken. Stoploss is placed behind the local maximum. Usually, this is the high of the breakout candle. Take profit - 2 times more than stop loss.
Sell entry rules
1. The price has broken down the slow MA 150.
2. MA 6 is at or below MA 25.
3. After the price touches the fast MA, move to the timeframe below and wait for the reversal signal.
Also, take-profit can be set at important support or resistance levels.
Conclusion
Forex strategy Base 150 remains a powerful weapon in the right hands to this day. To use it successfully, it is worth taking only the first rollback to the "heavy" MA 150, and also looking for the moment to enter one timeframe lower, taking into account the support/resistance levels and Price Action patterns. Your personal filters are also welcome as the right strategy for you is the key to success in trading.
