High accuracy contrarian trading system and strategy with HMA Bollinger Bands – The Hull Moving Average is an improved variant of the moving average, which shows the moment of trend reversal quite accurately. It is often used as a signal filter.
Trading NOTES
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- Use a demo account or a small live account first to practice this trading system
Combination of two types of Hull Moving Averages makes a better use of these advantages: HMA with a slow period identifies the trend, while HMA with a fast period determines the short-term movements and signals in the trend direction.
- Time Frame: H1 or higher
- Currency Pairs: GBPUSD, EURUSD, USDJPY, and USDCAD
MetaTrader Trading Indicators
- HMA
- Bollinger Bands
- Fractals
- Commodity Channel Index
BUY Rules
- After the price touches or breaks lower band, open BUY when
- HMA fast crosses up HMA slow
- HMA slow blue color
- HMA fast orange color
- Commodity Channel Index line above 50 level
SELL Rules
- After the price touches or breaks lower band, open SELL when
- HMA fast crosses down HMA slow
- HMA slow red color
- HMA fast violet color
- Commodity Channel Index line below -50 level
Trading NOTES
- Best Time Frames: H4 and Daily
- Initial stop loss above or below the previous swing
- Risk Reward Ratio 1:2