LMT Formula Forex Trading Strategy
The LMT Formula Forex Trading Strategy fits all timeframes (authors suggest 4H and Daily) and currency pairs. It is displayed directly on the main trading chart and in the window below. The default settings are good but can be modified. Feel free to test it with the settings and parameters to fit your preferences.
How to trade with the LMT Formula Forex Trading Strategy?
The most important indicator is the LMT Trigger indicator. This indicator has a window below the chart and displays green or red histogram bars to reflect the trend momentum. Depending on the provided color, a trader can decide to go long or short trade. The second important element is the 10-period Exponential Moving Average, and where the price is above it, the trend is considered bullish. Similarly, when the price is below it, the trend is considered bullish. The third and last element to decide on trade is the candlestick pattern. Please consider only Engulfing Pattern, Pin Bar Formation, and Doji Pattern for that strategy’s needs.
Buy Signal
Follow these steps for a long trade:
- The Trigger indicator provides at least three green bars in a row
- The price is above the Exponential Moving Average
- Price swings higher from recent low swing
- Manually recognized one of the three candlestick patterns to take place
- Buy-entry trade is triggered after the above-mentioned conditions are complete.
- Set stop-loss(SL) a few pips below the last swing low of the market
- Take profit or exit whenever the price drops below the Exponential Moving Average. Use your method of trade exit.
Sell Signal
Follow these steps for a short trade:
- The Trigger indicator provides at least three red bars in a row
- The price is below the Exponential Moving Average
- Price swings lower from recent high swing
- Manually recognized one of the three candlestick patterns to take place
- Sell trade is triggered after the above conditions are met
- Set stop loss(SL) a few pips below the last swing low of the market
- Take profit or exit whenever the price rises above the Exponential Moving Average. Use your method of trade exit.
