The LMT Formula Forex Trading Strategy is a forex trading strategy to use with candlestick patterns. The system has two main elements: a Moving Average and an oscillator called the Trigger. To decide on a trade, you must analyze candlestick formations and check signals provided by the indicators.
The LMT Formula Forex Trading Strategy fits all timeframes (authors suggest 4H and Daily) and currency pairs. It is displayed directly on the main trading chart and in the window below. The default settings are good but can be modified. Feel free to test it with the settings and parameters to fit your preferences.
Table of Contents
How to trade with the LMT Formula Forex Trading Strategy?
The most important indicator is the LMT Trigger indicator. This indicator has a window below the chart and displays green or red histogram bars to reflect the trend momentum. Depending on the provided color, a trader can decide to go long or short trade. The second important element is the 10-period Exponential Moving Average, and where the price is above it, the trend is considered bullish. Similarly, when the price is below it, the trend is considered bullish. The third and last element to decide on trade is the candlestick pattern. Please consider only Engulfing Pattern, Pin Bar Formation, and Doji Pattern for that strategy’s needs.
Buy Signal
Follow these steps for a long trade:
- The Trigger indicator provides at least three green bars in a row
- The price is above the Exponential Moving Average
- Price swings higher from recent low swing
- Manually recognized one of the three candlestick patterns to take place
- Buy-entry trade is triggered after the above-mentioned conditions are complete.
- Set stop-loss(SL) a few pips below the last swing low of the market
- Take profit or exit whenever the price drops below the Exponential Moving Average. Use your method of trade exit.
Sell Signal
Follow these steps for a short trade:
- The Trigger indicator provides at least three red bars in a row
- The price is below the Exponential Moving Average
- Price swings lower from recent high swing
- Manually recognized one of the three candlestick patterns to take place
- Sell trade is triggered after the above conditions are met
- Set stop loss(SL) a few pips below the last swing low of the market
- Take profit or exit whenever the price rises above the Exponential Moving Average. Use your method of trade exit.
As always, to achieve good results, remember about proper money management. To be a profitable trader, you must master discipline, emotions, and psychology. It is crucial to know when and when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the LMT Formula Forex Trading Strategy in MT4?
Installation Guide
Download the LMT Formula Forex Trading Strategy.rar archive at the bottom of this post, unpack it, then copy and paste the indicators files of the LMT Formula Forex Trading Strategy into the MQL4 folder of the MetaTrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Furthermore, to run the LMT Formula Forex Trading Strategy, you must copy the template file into the templates folder. To proceed, right-click on a chart, then Template > Open Templates, and copy the LMT Formula Forex Trading Strategy. tpl file into that folder. Select the file and click Open to load the system on your chart.
Bottom Line
The LMT Formula Forex Trading Strategy is worth adding to your trading collection. A good forex strategy will enhance your chance of success. Nonetheless, remember to have realistic expectations. Like any other technical analysis tool, it cannot provide accurate Entry signals 100% of the time. Thus, this forex trading system provides false signals occasionally. Its performance will vary significantly depending on market conditions.
Download Free MT4 LMT Formula Forex Trading Strategy
