THE MOVING ENVELOPES TRADING STRATEGY

"Moving Averages can be a great tool for determining the master trend but also to signal trades by using the Moving Average Envelopes"


TRADING STRATEGY

Style: Swing Trading Strategy

Name: Trading the Moving Envelopes Strategy

FINANCIAL ASSETS

Forex Majors | Metals and Energy | Stocks | Indices



TIMEFRAME

■ H1 timeframe (1-Hour)



INDICATORS & SETUP

This strategy is applied using two Moving Averages and the ADX

In order to create the envelope, you need two simple moving averages (SMA). Any signal generated by the SMAs is confirmed using the Average Directional Movement Index (ADX)

1. Two SMAs (Two Simple Moving Averages)

SMA-1 (fast): choose 9 periods

SMA-2 (slow): choose 21 periods

2. ADX

ADX Settings

2. Average Directional Movement Index with Meta Trader 4 default

setting (ADX 14). A level of 40 is added.



TRADING SIGNALS

This is how you may implement the Trading the Moving Envelopes Strategy

■ (↑) Long Trades

If the fast SMA (9 periods) crosses above the slow SMA (21 periods) you get a Buy signal. Confirm this signal with a falling ADX. A falling ADX indicates that the market volatility is falling and that may be good news for an upcoming bullish market.

■ (↓) Short Trades

If the slow SMA (21 periods) crosses above the fast SMA (9 periods) you get a Sell signal. Confirm this signal with a rising ADX. A rising ADX means that the market volatility is rising.



TRADING ORDERS

Take Profit: 240-300 pips | ■ Stop-Loss: 80-100 pips | ■ Profit/Loss Ratio: 3

 


CHART: MOVING ENVELOPES (EURUSD)

Moving Averages can be a great tool for determining the master trend but also to signal trades by using the Moving Average Envelopes

 


 

 

FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Trading the Moving Envelopes Trading Strategy

ForexExperts.net ©

Enter the Compare Zone

Compare Forex Brokers Based on the Algorithms of the Forex RatingFormula 5.0..

Compare Forex

Consisting four (4) Rating Factors {Safety, Competition, Options, Technology) -Maximum score is 100%

Review Brokers

Compare Forex Brokers

Review ECN/STP Online Forex Brokers..

Trade Systems

A trading system is a set of specific processes and rules that can help traders to optimize their trading process, or to develop automated trading strategies (EAs):

» EA Builder for MT4, MT5, and TradeStation

» Compare EA Systems

» Market Sentiment

» Forex PAMM Accounts

Strategy Quant for Automated Strategies

Forex Ratings

Forex Broker Ratings Powered by the Revolutionary RatingFormula 5.0Forex Broker Ratings Powered by the Revolutionary RatingFormula 5.0 (?)

» FXTM Rating

» AXI Rating

» FXCC Rating

» IC Markets Rating

» FxOpen Rating

» FBS Rating

(+) All Forex Ratings

The RatingFormula series is a concept of George M. Protonotarios aiming to objectify the online corporate ratings. In the future, search engines and other applications will use similar rating algorithms to estimate the real value of online corporations for end users and list them respectively in their search results.

Forex Cash Bonuses

Forex Cash Bonuses□ 20% MULTIBANK BONUS (UP TO $40,000, WITHDRAWABLE)

10% as a cashback bonus + another 10% as credit

BONUS DETAILS:

  • The Cashback Bonus is withdrawable
  • On all accounts, except the Pro Account

□ START HERE:

20% MULTIBANK DEPOSIT BONUS


□ 100% LQDFX BONUS  (UP TO $20,000, WITHDRAWABLE)

The 100% LQDFX cash Bonus applies to all deposits above $250, in all account types, and it is instantly credited.

BONUS DETAILS:

-1-. The maximum cumulative amount that can be earned is 20,000 USD/EUR per trading account.
-2-. The 100% Bonus Value is calculated as $5 USD per round turn lot traded. (100,000 units round turn) traded on FX & Gold products
-3- Positions open for less than three minutes are not eligible to qualify towards the volume requirement.
-4- The 100% Bonus can be withdrawn
-5- Minimum deposit amount to qualify for the 100% bonus is $250 per deposit

□ START HERE:

100% LQDFX WELCOME BONUS


□ $50 FBS NO-DEPOSIT (FREE) BONUS

BONUS DETAILS:

-1- Trade and multiply your profit with a maximum leverage of 1:500
-2- Profit received on the bonus funds is withdrawable after 2 lots are traded, and profit reaches $25 or more
-3- Maximum profit made with the Bonus account is $500

□ START HERE:

$50 FBS (FREE) NO-DEPOSIT BONUS

Go to top