Forex Strategy Spaghetti FX

How often do you use the moving averages (MAs) in its trading systems?

How many times have you heard that the moving average is not a good indicator, because they are too much “lag”?

We will show you that, thanks to an innovative analysis of moving averages can be profitable, even using only them. This template Spaghetti FX forex strategy that is based on the respect of several moving averages.

 

 

It was taken a very good idea representing the two sides of the market: long-term and short-term trades trades. With two sets of moving averages with different periods, we can clearly see how they are displayed. But it is not easy to trade, as they are purely graphic representing the two sides.And it is not easy to understand when there is an opportunity for input, output, trade or not to trade.

Therefore, to read their undeniable way, two new indicators were created.

It is important to emphasize that these indicators do not redraw and are based on a single currency and a single term, so they can be easily checked.

These two indicators – Spaghetti FX and Spaghetti FX signal.

Spaghetti FX indicator is synthesized from two types of moving averages: fast and slow.

The figure below shows how it looks:

The forex indicator Spaghetti FX we have 4 elements:

Red Line (Fast MAs)

Spread the red moving average. If the red line is below 0, then a red MAs points down (short positions). On the contrary, if they are above the line of 0, indicating that we will open long positions.

Blue Line (Slow MAs)

As above, but for the blue moving average. If the blue line is below 0, then the blue MAs points down (short).Conversely, if they are above the 0 line, indicating that they are long.

Light gray histogram (Spread)

It shows the gap between the two sets of moving averages. The wider it is, the stronger and more stable trend. It can also be used as an indicator of a trend. Above 0, we have a bullish trend, below 0 bearish.

Dark gray histogram (amplitude)

It shows the total spread of the two sets of moving averages. From fast to slow MAs.

But to make it even easier, we have developed a real trading system around the display and prepared an additional indicator that is incredibly easy to read and gives a very good input / output signals that can not be misunderstood.

Reading the signals Spaghetti FX indicator, the market can be divided into 4 terms:

• Bold blue – a strong bullish

• Blue – bullish

• Red – bear

• Bold red – strong bearish

With forex indicator Spaghetti FX, you will be able to understand that the two major market participant (long-term and short-term trades) do and how they relate to each other. Agreed or not.