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LMT Forex Formula Trading System
Introduction to the LMT Forex Formula Trading System
The LMT Forex Formula Trading System is a forex trading strategy to use in conjunction with candlestick patterns. There are two main elements of the system: a Moving Average and an oscillator called the Trigger. To decide on a trade, you will need to analyze candlestick formations, and check signals provided by the indicators.
The LMT Forex Formula Trading System fits all kinds of timeframes (authors suggest 4H and Daily) and currency pairs. It is displayed both directly on the main trading chart and in the separate window placed just below it. The default settings are good but can be modified. Feel free to experiment with the settings and parameters to fit your personal preferences.
How to trade with the LMT Forex Formula Trading System?
The most important indicator is the LMT Trigger indicator. This indicator has its own window which appears below the chart and displays green or red histogram bars as the reflection of the trend momentum. Depending on the provided color, a trader can decide to go long trade or short trade. The second important element is 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. For the needs of that strategy, please considered only Engulfing Pattern, Pin Bar Formation, and Doji Pattern.
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 trade is triggered after the above conditions are met
- Set stop loss 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 own method of trade exit
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