137# Reversal Strategy with Arithmetic Trader

Submit by LeoFx

Reversal Strategy with Arithmetic Trader is momentum trading system that find the reversal price of market with momentum indicatrs. The main indicator of this strategy is Arithmetic Trader based on the Commodity Channel Index and Relative Strength Index, this indicator generates signals of inversion based on overbought and oversold. The inversion signals of Arithmetic Trader do not represent the time of entry into the market but must be confirmed by another trend momentum indicator, the W.A. Explosion.

Strategy for day trading and swing trading.

This strategy works well in side markets or medium trend.

Plataform: metatrader 4

Time Frame 30 min, 60 min or higher.

Currency pairs: Majors and Minors, Commodities.

Metatrader 4 indicators:

Arthemetic Trader (CCI 25 periods).

Bollinger Bands indicator (period 20, deviation 2.0).

Parabolic Sar MTF (0.2-0.02).

WA Explosion (150, 30,15,15).

Trading rules Reversal Strategy with Arithmetic Trader

Buy

Arthmetic Trader (main indicator) draw on the chart an buy arrow.

Entry in the market when W.A. Explosion histogram green is above of the Moving Average.

Place initial stop loss on the previous swing High/Low.

Exit when WA Explosion histogram green is below moving average, when Parabolic Sar changes direction to buy at sell or with ratio stop loss 1.18.

Sell

Arthmetic Trader (main indicator) draw on the chart an sell arrow.

Entry in the market when W.A. Explosion histogram red is above of the Moving Average.

Place initial stop loss on the previous swing High.

Exit when WA Explosion histogram red is below moving average, when Parabolic Sar changes direction to sell at buy or with ratio stop loss 1.18.

In pictures examples of trading with Arthmetic Trader.