Simple Forex Metatrader Template

I've currently got around 21 different forex templates loaded into my charting software but today I thought I would share with you one particular template that I've been working on recently. It uses a combination of moving averages in conjunction with one of my favourite indicators, the Supertrend indicator, and I think it could potentially be extremely profitable.

The components of this particular template are as follows:

- Exponential Moving Average (10) - blue
- Exponential Moving Average (21) - green
- Simple Moving Average (35) - red
- Exponential Moving Average (62) - pink
- Supertrend (1.5, 5)

It should look something like this:

As you can see, not only does the Supertrend indicator (with these shorter settings) track the price extremely closely, but you also get some very nice breakouts shorter after these moving averages converge together.

So if you combine the two you can get some excellent trading opportunities. For instance a good opportunity to open a long position would be when the moving averages are close together and the Supertrend has just turned green (and vice versa for a short position).

To take this one step further you can get real value from a trade when both these conditions are met, but the price then retraces back towards the Supertrend indicator. For example the moving averages are close together, the Supertrend indicator has turned green, the price initially rises and then falls to within 10 points of the Supertrend indicator.

A high probability position would be to go long, place your stop loss where the Supertrend indicator currently is, ie 10 points away in this case, and then close the position either at a pre-set target (much higher than the stop loss) or when the Supertrend subsequently turns red again.

Alternatively you could simply enter a position as soon as the candle closes and the change in Supertrend is confirmed if you want to jump on board early, or you could wait for a suitable fibonacci retracement before entering a position.

As I've already said, I haven't yet fully developed an exact trading system that uses this particular forex template but I definitely think it has a lot of potential and will be testing it out some more in the coming weeks.

In the meantime if you happen to develop your own profitable trading system based on this template, I would love to hear from you.

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