Trading strategy with directionThis strategy allows you to trade with the trend, and as we know, one of the most successful trading methods that follow the trend because the trend is your friend, and we will use simple tools to find the direction and this method is suitable for all currency pairs and commodities and stocks.
How to Find the trend?
1-Trend Analysis Indicators:Moving Average 30 (SMA)
Moving Average 50 (SMA)
Moving Average 100 (SMA)
2-Direction conditions: (How to Check the direction):
2-1 All moving average lines (SMA) are arranged
Down trend: average 30 under 50 and 50 below 100
Rising trend: average 30 above 50 and 50 above 100
Notes:
The price should form descending tops and bottoms in a bearish direction.
The price should form bullish tops and bottoms in the upside.
When peaks and bottoms overlap in the opposite direction, this is a weak sign of direction.
Alarm signals:
The averages are not arranged
Cross line 30 with the rest of the lines in the opposite direction
2-2 All moving average lines (SMA) are pointing in the same direction:
Down trend: All moving averages should be indicated below
Upward trend: All moving average lines should indicate higher
Alarm signals:
The direction in which all lines indicate a reversal of trend
Move a line or all the lines accidentally
2-3 All moving average lines (SMA) are parallel to each other (no intersections)
Lines of moving averages must be parallel in a trend-oriented period
There should be no intersections between the moving averages in the trend period
2-4 Price is on the right side of SMA 50 (SMA):Down trend: The price must be below SMA 50 in a trending period
Up trend: The price must be above the 50 SMA in the trending period
Alarm signals:Breakout or breakage of the 50 SMA (SMA) in the opposite direction
Close more than 3 candlesticks in the opposite direction of SMA 50 (SMA)
The much tested SMA 50 weakens its strength
2-5 Price no-where near the 100 (SMA):
Notes:The price should not touch or close the SMA for the duration of the trend (trend)
When it touches or exceeds the 100 SMA, this is a sign of Weak trend / End trend / Trend reversal / Do not enter any opportunity with direction.
When it touches or exceeds the SMA 100 to leave any opportunity until the 6 conditions are formed again in the same direction or the opposite direction.
2-6 Harmonic swings off the 30/50 SMA area:
Down trend: After a bearish move with the trend should wait for the price until the correction to the top and enter the dynamic zone and then swing down then there is a possibility to be an opportunity to enter with the trend.
A bullish trend: after a bullish move with a trend, wait for the price to correct the bottom and enter the dynamic zone and then to the upside then there is the possibility of an opportunity to enter with the trend
Notes:
The dynamic zone of support and resistance (Gold Zone) is a price control area and entry into transactions
6 conditions must be met to have a true and strong direction
If Condition 6 is not met in a certain frame it is preferable to look for it in other frame.
For example, we found a strong trend in the 4-hour frame, but Condition 6 has not yet been achieved, so we will move to the hour or half an hour until we find the conditions.
In the end, I hope you like the strategy and if you have a question, please let me know in the comment.
