Strategy "45 combo momentum system"

2020.12.01 2020.12.01 Strategy "45 combo momentum system"

Artem Shashkovhttps://www.litefinance.org/blog/authors/artem-shashkov/

In the strategy 2 moving averages (EMA) are used. The crossing of them helps to identify the moments of trend change. Besides MACD indicator is used, it helps to assess the price momentum strength.

Trading according to the strategy of 45 combo is based on two principal points:

1. The trend which began is likely to continue;
2. A strong trend doesn’t reverse immediately.

In the strategy 2 moving averages (EMA) are used. The crossing of them helps to identify the moments of trend change. Besides MACD indicator is used which helps to assess the price momentum strength.

Transaction is entered after the first price rollback into the area of EMA of a longer time frame when there appear patterns PA which indicate the start of the reversal to the dominant trend.

Entering according to this strategy allows to make profit even if the main trend won’t continue; after the rollback to EMA the price is likely to pass a number of points in the direction of the trend before it finally reverses.

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