SUPPLY AND DEMAND MT5, PRICE ACTION FOREX STRATEGY

SUPPLY AND DEMAND MT5, PRICE ACTION FOREX STRATEGY

The Supply and Demand MT5 Forex Strategy stands as the king of price action trading systems. Its principle is straightforward: the indicator identifies support and resistance levels on the chart and verifies whether these levels have been tested. These verified levels serve as key reference points for trading decisions.



Setup Strategy

Price Action Strategy

Time Frames: 30 minutes or higher

Currency Pairs: Any

Best Time Frames: Daily and 240 minutes (4-hour)

Metatrader 5 Indicators:

Supply and Demand

HMA (Hull Moving Average)

◦ 15 periods (for daily time frame)

◦ 18-20 periods (for 240-minute time frame)

Stochastic Trend (optional filter)

Symbol Changer

Trading Rules

Identify Key Levels on the Chart:

◦ Locate significant support and resistance levels.

Buy Setup

◦ Identify a key support level.

◦ When the price bounces off the support, wait for the HMA to give a buy signal (indicated by a light blue color).

◦ Optionally, use the Stochastic Trend as a filter.

Sell Setup

◦ Identify a key resistance level.

◦ When the price bounces off the resistance, wait for the HMA to give a sell signal (indicated by turning red).

◦ Optionally, use the Stochastic Trend as a filter.

Exit Position

◦ Set the stop loss below (for long positions) or above (for short positions) the support/resistance line.

◦ Aim for a profit target with a minimum ratio of 1:1.1 (profit to stop loss).

In the pictures examples of Trading.