FOREX 2 JMA System
Forex Strategy 2 JMA System
for trading on Forex Strategies 2 JMA System best currency pair EURUSD, a 15-minute interval (M15) , in this case before the trade I recommend determine the natural support and resistance levels for the period H1 .
The 15 minute chart of the EURUSD set:
1) Jurik Moving Average c period of 40 - JMA (40)
2) Jurik Moving Average c period of 80 - JMA (80)
opening a trade position forex strategy 2 JMA System:
1) Open transaction in the direction of a moving average JMA ( on buy, if the fast JMA (40), above the slow JMA (80), to sell - on the contrary < / em >).
2) opening deals with the trend , it is necessary that the trend was very "fresh", ie has been a major trend this session.
3) If a moving JMA has happened in the morning ( from 3:00 to 12:00 GMT ), then you can make a deal only once occur fall back to slower moving , ie JMA (40) (must be the closure plugs no farther than 15 pips from the slow JMA (40)), or if the price is already near or even far below the moving average JMA (40).
Just morning to the intersection, there is one rule : if the market is not the prevailing trend and the slope JMA weak, then after crossing moving averages, a trade can only be closing of the seventh bar , not counting the one bar, which happened to cross JMA; if a sharp jerk on the chart and the slope of the JMA pronounced , then open transaction can close on the 5th bar (or immediately if the price of the bar is located very close to the slow moving JMA (40) - 10 pips or less).
4) The moving average crossing JMA after 12:00 GMT , open the transaction must immediately to close the bar, which happened at the intersection of 2 JMA , but at the same price should not be beyond 25 pips from the slow JMA (40). If the price is further from the JMA (40) than 25 pips, then you need to wait for the rollback and buy immediately, if the necessary conditions to wait for closing the bar is not necessarily recoil, you can close the deal immediately.
5) In all cases, the opening of trading positions if the fast JMA (with option 40) after crossing directed against the trend (against the direction of this intersection of two moving averages) - such a signal should be ignored .
Setting Stop loss and Take Profit on forex strategy 2 JMA System:
Stop-loss is set firmly in 30 pips , take profit with a minimum of 60 points or more.
Set warrant reversal.
After opening the trading position of the signal , once a reversal should be set to a pending order (in any case do not warrant a reversal set, if the order of the signal has not yet responded). It requires us, in order to justify the losses if they occur on the first trading positions. The opening price of the pending order will be the same as the stop-loss price the first trading positions and stop-loss orders pending at the same time set for opening the first trading position, he will be 30 pips.
Teyk-profit reversal order is placed a little more than a stop-loss first trading positions - 40 pips. Reversal order to shoot only as a stop-loss first trading position to be in profit and preferably repositioned to zero.
Management trailing stop .
If the floating profit on the open transaction is 30-49 pips, move the stop-loss +3-5 pips. If the floating profit of more than 50 pips, move the stop-loss at 10 pips profit, if more than 60 pips in 20, etc. (ie, step 10). respectively. When you transfer the stop-loss in profit zone, warrant a reversal must be removed.
If the deal is not closed, then after the 2nd trading day, or at the end of the trading week (on weekends) - you need to close a trading position at about until the market closes for the weekend so as not to fall into the gap at the opening of the week.
trading signals suggest the best track from 8:30 to 17:00 Moscow time .
But actual examples - the better indicator of JMA as compared to conventional (SMA) or the exponential EMA:
JMA indicator was developed by Mark Yura in 1998 and consists of a variety of MA, but one of the best filter price . Moving Average JMA smoothing characteristic of a good and with a minimum backlog of strong price movements as compared with MA, as well as the minimum advance after their endings, so when crossing the fast and slow JMA we get more accurate signals for entry and exit trading positions, than using, such as EMA.
Use this strategy at your own risk. Forex-Utility.com not responsible for any damages that may result to you when using any strategy, presented on the site. It is not recommended to use this strategy on a live account, without testing it to start a demo account.