
Triple Threat Forex Trading Strategy
Trading Systems Last update: August 16, 2024The Triple Threat Forex Trading Strategy is a trend-following forex system based on just three Moving Averages. Each Moving Average is set to a different period and their crossover act for a trade signal. What’s more, they also assist in defining the dynamic stop level of the market trend.
How to trade with the Triple Threat Forex Trading Strategy?
The Triple Threat Forex Trading Strategy consists of three Moving Average Indicators and Fractals Indicator. Detailed description is the following:
- 15, 30 & 60 MAs: this forex system includes 3 Simple Moving Averages (SMA) of 15, 30, and 60 day periods. These MAs work together to provide signals in the form of crossover. For a bullish trend, 30 MA must be above 60 MA and 15 MA must be above 30 MA. For a bearish trend, 60 MA must be greater than 30 MA and 30 MA must be greater than 15 MA. The 60 MA level can also be used to define the trailing stop level of the current market trend.
- Fractals: they come in handy for defining the possible swing areas of the market. However, we need to stress that not all the fractal signals are correct and they appear frequently on the chart. This is why we recommend matching the fractal signals with the crossovers of the Moving Averages before you make a trade entry.
Buy Signal
Follow these steps for a long trade:
- 15 MA moves above 30 MA
- 30 MA moves above 60 MA
- A fractal appears below the current candlestick
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the 60 MA
- Take profit or exit trade whenever 15 MA moves below 30 MA or use your own preferred method of trade exit
Sell Signal
Follow these steps for a short trade:
- 15 MA moves below 30 MA
- 30 MA moves below 60 MA
- A fractal appears above the current candlestick
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the 60 MA
- Take profit or exit trade whenever 15 MA moves above 30 MA or use your own preferred method of trade exit