When it comes to trading, one of the most effective strategies is utilizing moving averages, especially in a breakout scenario. Let's dive into how you can set this up in MetaTrader 4!
Understanding the Input Parameters
For this strategy, I'll break down the inputs as if we're looking at a buy trade. The same principles apply for sell trades, just in reverse.
- Input 1: Set the 20 EMA to be greater than the 30 EMA.
- Input 2: Ensure the 30 EMA is greater than the 50 EMA.
- Input 3: The opening price of the breakout candle should be above the 30 EMA.
Breaking Down the Breakout Settings
Now, let’s discuss the breakout settings:
- Quiet Bar Count: This parameter determines how many bars back the breakout must be higher than.
- Quiet Bar Range: Measured in pips, this sets the minimum range of the quiet bars.
- Impulse Strength: A value of 1.1 means the breakout must be at least 10% above the highs of the quiet bar range.
- Optimization Step Value: Set this at 0.1, starting from 1 up to about 5.
Wick Length and Breakout Size
Next, we need to consider:
- Input 5: Wick length should be expressed as a percentage of the entire bar.
- Size in Pips: Set your minimum and maximum sizes for the breakout bar in pips.
Final Touches for Your Strategy
Lastly, ensure:
- The low of the breakout candle is equal to or lower than the 20 EMA.
- Volume lots, stop loss, and target in pips are set accordingly.
By following these guidelines, you’ll be well on your way to mastering the moving average breakout strategy in MetaTrader 4. Happy trading!
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