618# The secret of the trend 

Submit by greenbytefx 13/01/2015

The secret of the trend is a breakout trend following strategy based on two filters: the first on the chart based on the moving averages, the second below the chart based on trend-momentum indicators.

Time frame 15 min or higher.

Currency pairs: majors.

Metatrader Indicators

Exponetial Moving Average 15 period, (shift 5)

Exponetial Moving Average 220 period , (high, shift 5)

Exponetial Moving Average 220 period, (low, shift 5)

Exponetial Moving Average 20 period, (level +200 -200 close , shift 5)

Trend direction,

Trend power.

Trading rules The secret of the trend

trade the trend direction only:

trend up above the 220 channel (red lines);

trend down below 220 channel.

Buy

If the price closes above the 200 level (black dot line) you take a market order if is confirmed by trend direction blue bar and trend power blue bar.

Sell
If the price closes below the -200 level (black dot line) you take a market order if is confirmed by trend direction red bar and trend power red bar.

Exit position

Make profit with ratio 1.2 stop loss or trailing stop.

Place intial stop loss 10 pips above/below orange line.

In the pictures the secret of the trend in action.

Share your opinion, can help everyone to understand the forex strategy

Strength Candle