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The MA Strategy with Awesome is a trend trading strategy based on the functioning of four indicators included in the standard Forex set. For trading, the strategy uses three moving averages with different periods and smoothing methods and the Awesome Oscillator trend indicator. All indicators included in the strategy are trendy, so trading with the help of the strategy occurs only at the moment of a certain trend. The indicators of the strategy work on confirming each other, so it is important to take into account the signals of all indicators.
The strategy is suitable for use with all currency pairs and timeframes from M15.
Strategy indicators
The MA Strategy with Awesome strategy includes four trend indicators included in the standard Forex set, the effectiveness of which has been proven by time. The values of the indicators set in the strategy are suitable for all timeframes and currency pairs, while for own trading, their values may change.
- LWMA - linearly weighted moving average, the period value of which is 7.
- EMA - exponential moving average with a period of 18.
- SMA - simple moving average with a period of 25.
- Awesome Oscillator - trend trading indicator of technical market analysis.
Trading with the MA Strategy Awesome
The MA Strategy with Awesome trading strategy is very easy to use, thanks to the simple indicators included in it. To open a certain trade, it is important to take into account the values of all the indicators included in it, as they, in turn, will indicate the direction of the current market trend. If the current trend is upward, long positions are opened, if the trend is downward, short positions can be opened. When the trend changes, any trades are closed.
Conditions for Buy trades:
- Moving averages cross so that the LWMA is above the EMA, which in turn is above the SMA.
- The Awesome Oscillator indicator is colored with the growth value and rises above the 0 level.
Upon receipt of such conditions, on a candle that after the signal, a long position may be opened, due to the presence of an uptrend in the current market. A stop loss order should be placed at the point of a recent local extremum. Such a trade should be closed when the lines cross back, which in turn will indicate a possible change in the current trend, which can be confirmed by a change in the color of the Awesome Oscillator histogram. At this moment, it should be considered opening new trades.
Conditions for Sell trades:
- LWMA crosses EMA from top to bottom and SMA is above other moving averages.
- The Awesome Oscillator histogram is colored with a falling value and falls below the 0 level.
A sell trade can be opened immediately upon receipt of such conditions on a candle that is formed after the signal one. At this moment, a downtrend is determined in the market. Stop loss should be set at the local maximum point. Such a trade should be closed with a possible trend change, that is, with the next crossing of the moving averages. A trend change can be confirmed by the Awesome Oscillator indicator and will allow considering opening new trades.
Conclusion
MA Strategy with Awesome is a very effective and profitable strategy based on time-tested indicators. The strategy is very easy to use and suitable even for beginners. To get the best results from trading using the strategy, preliminary practice on a demo account is recommended.
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