The HMA Momentum Forex Strategy is an MT4 trading system that comprises Hull Moving Averages (HMA), Commodity Channel Index (CCI), and Stochastics.
This strategy applies the Hull Master Trendline for providing a basic overview of the current market trend condition. Then it uses the combination of CCI and Stochastics to confirm the entry and exit levels of the orders.
Technically, HMA Momentum Forex Strategy suits all timeframes and supports forex, stocks, commodities, and cryptocurrency charts.
Buy Signal Generation with HMA Momentum Forex Strategy
The Hull Master is the central indicator of the strategy. It applies a 14-period HMA for plotting the dynamic trendline. During a bullish trend, the trendline turns white, and the price keeps spiking above it. You may go long after getting an uptrend confirmation if the Stochastics moves above the CCI line. The stochastics turns red and moves below the blue zone means it is time for a buy exit.
Sell Signal Generation with HMA Momentum Forex Strategy
The price moves below the Hull Master level, with the trendline turned into black to confirm a downtrend market. Afterward, the stochastics line should be turned red and move below the CCI line to signal a sell confirmation. Also, both CCI and Stochastics values drop below 40 indicates a strong bearish trend condition. According to the above example, we may exit a sell order when the stochastics line turns yellow and moves above 60.
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In foreign exchange trading, the price often makes rapid moves and remains unpredictable. The pattern of the market movements vastly depends on both technical and fundamental factors. For day trading, the challenge turns bigger because it involves quick decision-making and instant profit-taking. In that regard, the HMA Momentum Forex Strategy comprises simple and but highly accurate trend-following trading signals. According to our review, this versatile strategy is highly recommended for novice day traders.