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A forex trading strategy to employ with candlestick patterns is the LMT Formula Forex Trading Strategy. The Moving Average and the Trigger oscillator are the two key components of the system. You must consider candlestick formations and the signals given by the indicators before choosing a trade.
The LMT Formula Forex Trading Strategy works with all periods and currency pairs (the authors recommend 4H and Daily). It is shown both in the window below and directly on the main trading chart. Despite being good by default, the settings can be changed. Please feel free to experiment with it using the options and parameters that suit your tastes.
How to trade
The LMT Trigger indicator is the most significant one. To reflect the trend momentum, this indicator’s window below the chart shows either green or red histogram bars. A trader can choose to go long or short depending on the color offered. The 10-period Exponential Moving Average is the second crucial component; when the price is above it, the trend is deemed bullish. In a similar vein, the trend is viewed as bullish when the price is below it. The candlestick pattern is the third and last factor to be considered before making a transaction. Only the Engulfing Pattern, Pin Bar Formation, and Doji Pattern should be taken into account for that strategy.
Buy Signal
- At least three consecutive green bars are displayed by the Trigger indication.
- Price is more than the Exponential Moving Average.
- Price rises from its most recent low swing.
- manually identifying one of the three possible candlestick patterns
- Following the fulfillment of the aforementioned requirements, a buy-entry trade is initiated.
- Place your stop-loss (SL) a few pip(s) below the market’s most recent swing low.
- Whenever the price falls below the Exponential Moving Average, take a profit or get out. Utilize your trade exit strategy.
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Sell Signal
- At least three consecutive red bars are displayed by the Trigger indication.
- Price is lower compared to the Exponential Moving Average.
- Price swings lower from its most recent peak
- manually identifying one of the three possible candlestick patterns
- When the aforementioned conditions are satisfied, the sell trade is initiated.
- Place your stop loss (SL) a few pip(s) below the market’s most recent swing low.
- Any time the price exceeds the exponential moving average, take a profit or get out. Utilize your trade exit strategy.
As usual, use wise money management to get the best outcomes. You need to master discipline, emotions, and psychology to be a successful trader. Knowing when to trade and when not to is essential. Trading should be avoided at times and under unfavorable market conditions, such as low volume or volatility, outside of the main sessions, with exotic currency pairs, wider spreads, etc.
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 | No Minimum Deposit ECN Acount No Commission | |
 | Min Deposit of 20$ |
How do I configure MT4 for the LMT Formula Forex Trading Strategy?
Copy and paste the indicator files from the LMT Formula Forex Trading Strategy into the MQL4 folder of the MetaTrader 4 trading platform after downloading the LMT Formula Forex Trading Strategy.rar archive from the post’s bottom and unpacking it.
The top menu options, which are as follows, can be used to reach this folder:
(Paste here) File > Open Data Folder > MQL4 > Indicators.
Additionally, you need to copy the template file into the templates folder in order to use the LMT Formula Forex Trading Strategy. To continue, choose Template > Open Templates from the context menu of a chart, then paste the LMT Formula Forex Trading Strategy.tpl file into the resulting folder. To load the system on your chart, choose the file and click Open.
Bottom Line
It is worthwhile to expand your trading repertoire with the LMT Formula Forex Trading Strategy. Your chances of success will increase with a sound forex strategy. But always remember to set reasonable goals. Like any other technical analysis tool, it is not always able to deliver precise entry indications. As a result, this forex trading strategy occasionally generates misleading signals. The state of the market will have a huge impact on how it performs.
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