24# Half Trend with TMA Band Strategy MT5
Trend Reversal Strategy
TMA band as filter
Submit by Joy22
The Half Trend with TMA Band MT5 trading system combines the Half Trend indicator with the Triangular Moving Average (TMA) channel and momentum indicators like RSI, particularly for binary options trading. The primary aim of this strategy is to forecast favorable market conditions signaled by the Half Trend indicator.
The Half Trend indicator is a trend-following tool derived from smoothed simple moving averages, known for its non-recalculating nature and accurate predictions. Its effectiveness is evidenced by its high success rate in generating winning trades. Presented here is a robust filtering system designed to maximize trading success.
Setup Strategy
Time Frame: 5-15 minutes, 30 minutes, 60 minutes, 240 minutes, daily; with the 4-hour (4H) timeframe being optimal.
Currency pairs: Major pairs, minor pairs, commodities, and stock indices.
The strategy aims to capitalize on extreme zones of the TMA bands to capture a reversion to the mean.
MT5 Indicators:
Half Trend (amplitude 2)
TMA band (60, 100, 2)
TMA band (60, 100, 2.5)
RSI (11) with levels set at 70-30 (optional).
Trading Rules
Buy
Enter when the price breaches or closes below the lower TMA band.
Confirm with the appearance of a Half Trend buy arrow.
RSI (11) enters overbought territory(optional).
Sell
Enter when the price exceeds or closes above the upper TMA band.
Confirm with the appearance of a Half Trend sell arrow.
RSI (11) enters oversold territory (optional).
Exit Position
Options for profit targets include a stop-loss ratio of 1:1.18, exiting at the appearance of the opposite arrow, or a predetermined number of pips before reaching the upper or lower channel boundaries.
