Speed Runner Forex Trading Strategy is a pattern continuance kind of methodology that ought to be taken only in a trending environment.
Despite the fact that the market drifts just 20% of the time since day trading is done on the lower time periods, the odds are that there will be more modest patterns that could be traded inside the day.
In spite of the fact that this doesn’t occur each day, patterns do happen as a rule in a solitary day.
To trade the pattern continuance entry, we will utilise three quick EMA (Exponential Moving Averages) – 10, 15 and 20-period EMAs.
On a trending market environment, these three EMAs will be stacked and moderately fanned out and will have more incline, while ongoing market conditions, these EMAs will be flatter and more compressed.
Afterwards, we will attempt to observe the chart if the market is to be sure in a trending market condition. Provided that this is true, after that we will utilise the zone between the 10 and 15 periods EMA as a zone where we will foresee retracements.
We will trust that the price will return between the EMAs, at that close point back external the EMAs on the 10 periods EMA, signalling that it is continuing the pattern. The indicators are 10 periods EMA green colour, 15 periods EMA brown colour, 20 periods EMA magenta colour.
Timeframe: 5 Minutes chart
Forex Pair: GBPUSD, EURUSD, EURJPY, GBPJPY, and EURGBP
Session: This strategy best work in London.
Buy trade or long trade setup
Entry at the EMAs ought to be stacked in the accompanying order like 10 EMA – top, 15 EMA – centre, 20 EMA – bottom. Price should come from over the 3 EMAs.
Then hold back for the price to backtrack in the midst of the 10 and 15 periods EMA. Subsequent to retracing between the EMAs, hold-up for the price will close back over the 10 EMA.
Afterwards, enter a purchase market order at the end of the candle. Then put the stop-loss a couple of pips beneath the entry candle. Set the take profit point at jeopardising 2x on the stop-loss.
Sell trade or short trade setup
Entry the EMAs ought to be stacked in the accompanying order such as 20 EMA – top, 15 EMA – centre, 10 EMA – bottom. Price should come from underneath the 3 EMAs.
Hold back for the price to backtrack in the middle of the 10 and 15-time frame EMA. In the wake of retracing between the EMAs, hold up for the price to close back beneath the 10 EMA.
Then enter a sell market order at the end of the candle. Afterwards, set the stop loss at a couple of pips over the entry candle. Set the profit-taking point at 2x the risk of stop loss.
Step by step download and installation of forex indicator
- You need to follow these steps to install the indicator on your MT4 platform:
- Snap-on the “Download Indicator” button, situated at the lower part of the screen.
- Save the file to your PC.
- Extract and move the file into the MT4>Indicator organiser of the MetaTrader5 programming document registry.
- Restart your Metatrader platform.
- Explore “Indicators.”
- Furthermore, select the “Speed Runner Forex Trading Strategy” layout to apply it on the chart.
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