Momentum Reversal Strategy

BEST USE IN 15MIN TIME FRAME EURUSD / XAUSUD
1. Strategy Overview
This strategy hunts short-term momentum reversals at key levels during high-liquidity sessions.

Timeframes: 5-minute for entries; 15-minute for trend context

Sessions: London for EUR/USD & GBP/USD; New York for XAU/USD

Pairs: EUR/USD, GBP/USD, XAU/USD

Indicators (3 max):

EMA(20) and EMA(50) (close)

MACD (12, 26, 9) histogram

Optional: RSI(14) (for divergence filter)

2. Entry Rules
Trend Filter (15 min):

Long only if EMA20 > EMA50; short only if EMA20 < EMA50.

Price-Action Zone (5 min):

Identify recent swing high/low within past 20 bars.

Draw horizontal support (for longs) or resistance (for shorts).

Indicator Alignment (5 min):

MACD histogram crossing from negative to positive for longs, positive to negative for shorts.

Candle close beyond EMA20 in direction of trade.

Candle Confirmation:

Bullish engulfing or hammer at support for longs; bearish engulfing or shooting star at resistance for shorts.

Entry Execution:

Place market order on candle close that meets all above.

3. Exit Rules
Stop-Loss (SL):

Long: 1.5× ATR(14) below entry candle low.

Short: 1.5× ATR(14) above entry candle high.

Take-Profit (TP):

Set at 2× SL distance (RR 1:2).

Trailing SL:

After price moves 1× SL in profit, trail SL to breakeven.

Partial Booking:

Close 50% at 1× SL (50% of TP), move SL to entry.

Close remaining at full TP.

4. Trade Management
False Signal Filter: Skip trades when RSI(14) > 70 for longs or < 30 for shorts (avoids overbought/oversold extremes).

One Trade at a Time: No multiple positions on same pair.

Session Cutoff: Close any open trade 15 minutes before session end.

5. Risk Parameters
Risk per Trade: 1% of account equity.

Reward Target: ≥2% (1:2 RR) per trade.

Win-Rate Expectancy: ≥75% based on indicator confluence and price-action confirmation.